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What is the journal entry if actual price paid on credit for a raw material exceeds its standard price?
Wiki User
∙ 9y ago
debit raw material purchased
credit cash
it doesn't have any impact on payment as variance is an internal matter of business.
Wiki User
∙ 9y ago
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An unfavorable material quantity variance indicates?
actual usage of materials exceeds the standard material allowed for output
The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the?
The difference between actual quantity and standard quantity is called the material quantity variance.
What exists when budgeting cost exceeds actual results?
A favorable difference.
How do you do journal entry for Forecasting Sales?
There is no journal entry for forecasting sales rather journal entry is made for actual sales when they occur.
What is standard cost method?
Under standard cost method, standard costs for material labor and overheads are determined first and all these costs are charged to production on that standard costs and quantity basis and after that variance analysis is done to find out the reasons for differences in actual costs with standard costs as basis for analysis.
An unfavorable material quantity variance indicates?
actual usage of materials exceeds the standard material allowed for output
The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the?
The difference between actual quantity and standard quantity is called the material quantity variance.
What is material cost variance?
The material cost variance denoting the difference between the standard cost of materials and actual cost of matrials. The material cost variance is between the standard material cost for actual production in units and actual cost. The total cost is usually determined by two differenct factors of influence viz quantity of materials utilized/ required and price of the materials. The fluctuations in the material cost are only due to the fluctuations in the utility of materials due to many factors. Material cost variance can be computed into two different ways: DIRECT METHOD AND INDIRECT METHOD material cost variance= Standard cost of materials for actual output- actual cost of raw materials. MCV=(S Q AO X SP)-(AQ X AP) Indirect Method: material cost variance= Material price variance (MPV)+Material usage Variance
If actual output exceeds potential output eventually what will happen?
According to the theories of macroeconomics, if actual output exceeds potential output, then the output will continue to grow as the price of inputs continues to fall.
What exists when budgeting cost exceeds actual results?
A favorable difference.
How do you do journal entry for Forecasting Sales?
There is no journal entry for forecasting sales rather journal entry is made for actual sales when they occur.
What happens when actual output exceeds potential output?
inflation rates tend to accelerate
What is standard cost method?
Under standard cost method, standard costs for material labor and overheads are determined first and all these costs are charged to production on that standard costs and quantity basis and after that variance analysis is done to find out the reasons for differences in actual costs with standard costs as basis for analysis.
The amount by which potential GDP exceeds actual GDP is one measure of the?
Macroeconomic cost of unemployment
What type of variance is excess usage?
Since actual usage of the direct material was greater than the standard allowed, the excess usage is called an unfavorable variance
How do you made a journal entry for loan repayment schedule?
There is no journal entry for loan repayment schedule rather journal entry is made when actual payment is done or installment is paid.
How do you write Journal entry for equipment rent to somebody?
There is no journal entry when equipment rented out to somebody as there will be entry when actual rent received.
