MANAGERIAL ACCOUNTING E-CARD W/ CONNECT
MANAGERIAL ACCOUNTING E-CARD W/ CONNECT
17th Edition
ISBN: 9781266678790
Author: Garrison
Publisher: MCG
Question
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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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