The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance . Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost , and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently. Activity variances of Company FAB

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Answer 1

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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 9, Problem 18P

1.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Activity variances of Company FAB

2.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Spending variances of Company FAB

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If the budget estimates that a ceiling fan will require 3 hours of assembly and 2 hours of painting.

Answer 2

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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 9, Problem 18P

1.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Activity variances of Company FAB

2.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Spending variances of Company FAB

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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 9, Problem 18P

1.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Activity variances of Company FAB

2.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Spending variances of Company FAB

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 9, Problem 18P

1.

To determine