Variance Analysis: Variance analysis is the process of ascertaining the deviations between actual and planned output. Favorable Variance: A circumstance that happens when a foreseen cost is higher than its real cost, or when expected income is lower than real income Unfavorable variance: Unfavorable variance is the difference between the actual and planned output which is harmful for the company like actual cost incurred is more than the standard or planned cost or the revenue is less than the planned revenue. 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. Material Price Variance: Material price variance is the difference between the budgeted and the actual purchase price of the material purchased. It is calculated to ascertain the efficiency of the purchase department. To determine: For each independent scenario indicate whether each of the manufacturing variances will be favorable or unfavorable or CBD (cannot be determined).

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Answer 1

Question

Chapter 8, Problem 8.28E

To determine

Variance Analysis:

Variance analysis is the process of ascertaining the deviations between actual and planned output.

Favorable Variance:

A circumstance that happens when a foreseen cost is higher than its real cost, or when expected income is lower than real income

Unfavorable variance:

Unfavorable variance is the difference between the actual and planned output which is harmful for the company like actual cost incurred is more than the standard or planned cost or the revenue is less than the planned revenue.

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.

Material Price Variance:

Material price variance is the difference between the budgeted and the actual purchase price of the material purchased. It is calculated to ascertain the efficiency of the purchase department.

To determine: For each independent scenario indicate whether each of the manufacturing variances will be favorable or unfavorable or CBD (cannot be determined).

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Answer 2

Question

Chapter 8, Problem 8.28E

To determine

Variance Analysis:

Variance analysis is the process of ascertaining the deviations between actual and planned output.

Favorable Variance:

A circumstance that happens when a foreseen cost is higher than its real cost, or when expected income is lower than real income

Unfavorable variance:

Unfavorable variance is the difference between the actual and planned output which is harmful for the company like actual cost incurred is more than the standard or planned cost or the revenue is less than the planned revenue.

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.

Material Price Variance:

Material price variance is the difference between the budgeted and the actual purchase price of the material purchased. It is calculated to ascertain the efficiency of the purchase department.

To determine: For each independent scenario indicate whether each of the manufacturing variances will be favorable or unfavorable or CBD (cannot be determined).

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Answer 3

Question

Chapter 8, Problem 8.28E

To determine

Variance Analysis:

Variance analysis is the process of ascertaining the deviations between actual and planned output.

Favorable Variance:

A circumstance that happens when a foreseen cost is higher than its real cost, or when expected income is lower than real income

Unfavorable variance:

Unfavorable variance is the difference between the actual and planned output which is harmful for the company like actual cost incurred is more than the standard or planned cost or the revenue is less than the planned revenue.

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.

Material Price Variance:

Material price variance is the difference between the budgeted and the actual purchase price of the material purchased. It is calculated to ascertain the efficiency of the purchase department.

To determine: For each independent scenario indicate whether each of the manufacturing variances will be favorable or unfavorable or CBD (cannot be determined).

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 8.28E

To determine

Variance Analysis:

Variance analysis is the process of ascertaining the deviations between actual and planned output.

Favorable Variance:

A circumstance that happens when a foreseen cost is higher than its real cost, or when expected income is lower than real income

Unfavorable variance:

Unfavorable variance is the difference between the actual and planned output which is harmful for the company like actual cost incurred is more than the standard or planned cost or the revenue is less than the planned revenue.

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.

Material Price Variance:

Material price variance is the difference between the budgeted and the actual purchase price of the material purchased. It is calculated to ascertain the efficiency of the purchase department.

To determine: For each independent scenario indicate whether each of the manufacturing variances will be favorable or unfavorable or CBD (cannot be determined).

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.28E

To determine

Variance Analysis:

Variance analysis is the process of ascertaining the deviations between actual and planned output.

Favorable Variance:

A circumstance that happens when a foreseen cost is higher than its real cost, or when expected income is lower than real income

Unfavorable variance:

Unfavorable variance is the difference between the actual and planned output which is harmful for the company like actual cost incurred is more than the standard or planned cost or the revenue is less than the planned revenue.

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.

Material Price Variance:

Material price variance is the difference between the budgeted and the actual purchase price of the material purchased. It is calculated to ascertain the efficiency of the purchase department.

To determine: For each independent scenario indicate whether each of the manufacturing variances will be favorable or unfavorable or CBD (cannot be determined).

Answer 6

Chapter 8, Problem 8.28E

To determine

Variance Analysis:

Variance analysis is the process of ascertaining the deviations between actual and planned output.

Favorable Variance:

A circumstance that happens when a foreseen cost is higher than its real cost, or when expected income is lower than real income

Unfavorable variance:

Unfavorable variance is the difference between the actual and planned output which is harmful for the company like actual cost incurred is more than the standard or planned cost or the revenue is less than the planned revenue.

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.

Material Price Variance:

Material price variance is the difference between the budgeted and the actual purchase price of the material purchased. It is calculated to ascertain the efficiency of the purchase department.

To determine: For each independent scenario indicate whether each of the manufacturing variances will be favorable or unfavorable or CBD (cannot be determined).

Answer 7

Chapter 8, Problem 8.28E

To determine

Variance Analysis:

Variance analysis is the process of ascertaining the deviations between actual and planned output.

Favorable Variance:

A circumstance that happens when a foreseen cost is higher than its real cost, or when expected income is lower than real income

Unfavorable variance:

Unfavorable variance is the difference between the actual and planned output which is harmful for the company like actual cost incurred is more than the standard or planned cost or the revenue is less than the planned revenue.

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.

Material Price Variance:

Material price variance is the difference between the budgeted and the actual purchase price of the material purchased. It is calculated to ascertain the efficiency of the purchase department.

To determine: For each independent scenario indicate whether each of the manufacturing variances will be favorable or unfavorable or CBD (cannot be determined).

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 8 - How do managers plan for variable overhead costs?Ch. 8 - How does the planning of fixed overhead costs...Ch. 8 - How does standard costing differ from actual...Ch. 8 - What are the steps in developing a budgeted...Ch. 8 - What are the factors that affect the spending...Ch. 8 - Assume variable manufacturing overhead is...Ch. 8 - Describe the difference between a direct materials...Ch. 8 - What are the steps in developing a budgeted fixed...Ch. 8 - Why is the flexible-budget variance the same...Ch. 8 - Explain how the analysis of fixed manufacturing...

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