Sales Volume Variance Sales volume variance is the variation in the actual units sold of a product and the budgeted sales of that product multiplied by the contribution margin of the product. Sales volume variance and flexible budget variance for operating income.

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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 7.29P

1.

To determine

Sales Volume Variance

Sales volume variance is the variation in the actual units sold of a product and the budgeted sales of that product multiplied by the contribution margin of the product.

Sales volume variance and flexible budget variance for operating income.

2.

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 Price Variance:

Direct labor price variance is the difference between the actual price charged by the labor for the work performed and the budgeted price of the labor.

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 and efficiency variances of direct material and direct manufacturing labor.

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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 7.29P

1.

To determine

Sales Volume Variance

Sales volume variance is the variation in the actual units sold of a product and the budgeted sales of that product multiplied by the contribution margin of the product.

Sales volume variance and flexible budget variance for operating income.

2.

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 Price Variance:

Direct labor price variance is the difference between the actual price charged by the labor for the work performed and the budgeted price of the labor.

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 and efficiency variances of direct material and direct manufacturing labor.

Expert Solution & Answer

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Check out a sample textbook solution

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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 7.29P

1.

To determine

Sales Volume Variance

Sales volume variance is the variation in the actual units sold of a product and the budgeted sales of that product multiplied by the contribution margin of the product.

Sales volume variance and flexible budget variance for operating income.

2.

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 Price Variance:

Direct labor price variance is the difference between the actual price charged by the labor for the work performed and the budgeted price of the labor.

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 and efficiency variances of direct material and direct manufacturing labor.

Expert Solution & Answer

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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 7.29P

1.

To determine

Sales Volume Variance

Sales volume variance is the variation in the actual units sold of a product and the budgeted sales of that product multiplied by the contribution margin of the product.

Sales volume variance and flexible budget variance for operating income.

2.

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 Price Variance:

Direct labor price variance is the difference between the actual price charged by the labor for the work performed and the budgeted price of the labor.

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 and efficiency variances of direct material and direct manufacturing labor.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 7, Problem 7.29P

1.

To determine

Sales Volume Variance

Sales volume variance is the variation in the actual units sold of a product and the budgeted sales of that product multiplied by the contribution margin of the product.

Sales volume variance and flexible budget variance for operating income.

2.

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 Price Variance:

Direct labor price variance is the difference between the actual price charged by the labor for the work performed and the budgeted price of the labor.

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 and efficiency variances of direct material and direct manufacturing labor.

Answer 6

Chapter 7, Problem 7.29P

1.

To determine

Sales Volume Variance

Sales volume variance is the variation in the actual units sold of a product and the budgeted sales of that product multiplied by the contribution margin of the product.

Sales volume variance and flexible budget variance for operating income.

Answer 7

Chapter 7, Problem 7.29P

1.

To determine

Sales Volume Variance

Sales volume variance is the variation in the actual units sold of a product and the budgeted sales of that product multiplied by the contribution margin of the product.

Sales volume variance and flexible budget variance for operating income.

Answer 8

2.

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 Price Variance:

Direct labor price variance is the difference between the actual price charged by the labor for the work performed and the budgeted price of the labor.

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 and efficiency variances of direct material and direct manufacturing labor.

Answer 9

2.

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 Price Variance:

Direct labor price variance is the difference between the actual price charged by the labor for the work performed and the budgeted price of the labor.

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 and efficiency variances of direct material and direct manufacturing labor.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 7 - What is the relationship between management by...Ch. 7 - What are two possible sources of information a...Ch. 7 - Distinguish between a favorable variance and an...Ch. 7 - What is the key difference between a static budget...Ch. 7 - Why might managers find a flexible-budget analysis...Ch. 7 - Describe the steps in developing a flexible...Ch. 7 - List four reasons for using standard costs.Ch. 7 - How might a manager gain insight into the causes...Ch. 7 - List three causes of a favorable direct materials...Ch. 7 - Describe three reasons for an unfavorable direct...

Sales Volume Variance Sales volume variance is the variation in the actual units sold of a product and the budgeted sales of that product multiplied by the contribution margin of the product. Sales volume variance and flexible budget variance for operating income.

Sales Volume Variance Sales volume variance is the variation in the actual units sold of a product and the budgeted sales of that product multiplied by the contribution margin of the product. Sales volume variance and flexible budget variance for operating income.

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Chapter 7 Solutions

Sales Volume Variance

Sales volume variance is the variation in the actual units sold of a product and the budgeted sales of that product multiplied by the contribution margin of the product.

Sales volume variance and flexible budget variance for operating income.