Direct Material Price Variance Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased. Direct Material Efficiency Variance Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price. Direct Labor Efficiency Variance Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate. Price Variance, Efficiency Variance and Flexible Budget Variance for Direct Material and Direct Manufacturing Labor and percentages of Direct Material Variance and Direct Manufacturing Labor Variance.

Question

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Answer 1

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 7, Problem 7.23E

1.

To determine

Direct Material Price Variance

Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance

Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance

Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

Price Variance, Efficiency Variance and Flexible Budget Variance for Direct Material and Direct Manufacturing Labor and percentages of Direct Material Variance and Direct Manufacturing Labor Variance.

2.

To determine

Price Variance, efficiency variance and flexible budget variance for direct material and direct manufacturing labor and percentages of direct material variance and direct manufacturing labor variance in May 2014.

3.

To determine

The usage of new material that was experimented in May 2014

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The actual cost of direct labor per hour is $16.25 and the standard cost of direct labor per hour is $15.00. The direct labor hours allowed per finished unit is 0.60 hours. During the current period, 4,500 units of finished goods were produced using 2,900 direct labor hours. How much is the direct labor rate variance? A. $3,625 favorable B. $3,625 unfavorable C. $4,350 favorable D. $4,350 unfavorable

Answer 2

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 7, Problem 7.23E

1.

To determine

Direct Material Price Variance

Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance

Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance

Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

Price Variance, Efficiency Variance and Flexible Budget Variance for Direct Material and Direct Manufacturing Labor and percentages of Direct Material Variance and Direct Manufacturing Labor Variance.

2.

To determine

Price Variance, efficiency variance and flexible budget variance for direct material and direct manufacturing labor and percentages of direct material variance and direct manufacturing labor variance in May 2014.

3.

To determine

The usage of new material that was experimented in May 2014

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 7, Problem 7.23E

1.

To determine

Direct Material Price Variance

Direct material price variance in the difference between the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance

Direct material efficiency variance is the difference between the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance

Direct labor efficiency variance is the difference between the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

Price Variance, Efficiency Variance and Flexible Budget Variance for Direct Material and Direct Manufacturing Labor and percentages of Direct Material Variance and Direct Manufacturing Labor Variance.

2.

To determine

Price Variance, efficiency variance and flexible budget variance for direct material and direct manufacturing labor and percentages of direct material variance and direct manufacturing labor variance in May 2014.

3.

To determine

The usage of new material that was experimented in May 2014

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 7, Problem 7.23E

1.

To determine