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Causes material quantity variance?
causes of labor rate variances
List of causes of unfavorable direct material price variance?
1.rise in price. if price will be higher than the budgeted price then unfavourable 2.shortage of suppliers. this led to increase in price
Explain the meaning and relevance of interdependence of variances when reporting to managers?
The cause of one (adverse) variance may be wholly or partly explained by the cause of another (favourable) variance.Material price or material usage and labour efficiencyLabour rate and material usageSales price and sales volume
How do you calculate yields variances material and labor cost.?
To calculate yield variances for material and labor costs, first determine the standard costs and actual costs incurred. For material yield variance, subtract the standard quantity of materials allowed for the actual output from the actual quantity used, then multiply by the standard cost per unit. For labor yield variance, compare the standard hours allowed for the actual output with the actual hours worked, and multiply the difference by the standard labor rate. This analysis helps identify inefficiencies in production processes.
What does a favorable direct materials efficiency variance indicate?
A favorable direct materials efficiency variance indicates that you are using less material in production than was budgeted for.
What factors causes Budget Variance?
There are 7 variances associated with a budget ( which are generally calculated for controlling purposes) 1- Material Price variance 2- Material Quantity variance 3- Labor rate variance 4- Labor efficiency variance 5- Spending variance 6- Efficiency variance 7- Capacity variance
Causes material quantity variance?
causes of labor rate variances
What is the best window frame material for energy efficiency and durability?
Fiberglass is considered the best window frame material for energy efficiency and durability.
How do you calculate material price variances and what are the possible reasons for such variances?
Following are the causes of material price variance: 1.There could have been recent changes in purchase price of materials. 2.Price variance can be due to substituting raw materials different from the original material specification. 3.Price variance can be attributed to the non availability of cash discounts which was originally anticipated at the time of setting the price standards. 4.Changes in transportation costs and storekeeping costs can also be contributing factors to material price variance.
What is the definition for target rate range?
Peaceful Corporation manufactures figurines based on the following information.Standard costs$20Materials (4 ounces at $5)$8Direct labor (1 hour per unit)$4Variable overhead (based on direct labor hours)Fixed overhead budget$19,000Actual results and costsMaterials purchasedUnits9,000Cost$39,600Materials used in productionFinished product units2,000Raw material (ounces)8,200Direct labor hours2,000Direct labor cost$20,000Variable overhead costs$5,980Fixed overhead costs$19,500Required:Prepare a performance report for Peaceful using the following headings.Actual Production CostsFlexible Budget CostsFlexible Budget VariancesMaterials usage varianceLabor rate varianceLabor efficiency varianceVariable overhead spending varianceVariable overhead efficiency varianceFixed overhead budget varianceCompute the following variances (show calculations).Give one possible explanation for each of the six variances computed in part b.
List of causes of unfavorable direct material price variance?
1.rise in price. if price will be higher than the budgeted price then unfavourable 2.shortage of suppliers. this led to increase in price
The smallest possible part of a material such as copper is called?
The smallest possible part of a material such as copper is an atom. Copper atoms are the building blocks of the copper material.
Explain the meaning and relevance of interdependence of variances when reporting to managers?
The cause of one (adverse) variance may be wholly or partly explained by the cause of another (favourable) variance.Material price or material usage and labour efficiencyLabour rate and material usageSales price and sales volume
How do you calculate yields variances material and labor cost.?
To calculate yield variances for material and labor costs, first determine the standard costs and actual costs incurred. For material yield variance, subtract the standard quantity of materials allowed for the actual output from the actual quantity used, then multiply by the standard cost per unit. For labor yield variance, compare the standard hours allowed for the actual output with the actual hours worked, and multiply the difference by the standard labor rate. This analysis helps identify inefficiencies in production processes.
What does a favorable direct materials efficiency variance indicate?
A favorable direct materials efficiency variance indicates that you are using less material in production than was budgeted for.
What is the best roof insulation material for maximizing energy efficiency in a residential building?
The best roof insulation material for maximizing energy efficiency in a residential building is typically spray foam insulation. It provides a high level of insulation and helps to seal any gaps or cracks, reducing energy loss and improving overall efficiency.
What are the advantages and disadvantages of flexible budgeting?
In short, flexible are much more adventagous in comparison to static planned budgets. Static budgets are prepared before the period, therefore the amount of units sold are likely to be incorrect. This is fine, because it's a budget, but it is not very useful for decision making. Flexible budgets are prepared once the number of actual units sold is known. Think about it this way. If a company sells 200 units, but the static budget predicted 100, all of your expenses are going to result in unfavorable variances. However, expenses would be expected to increase with an increase in sales. Therefore, it is adventagous in terms of decision making based on the variances. The varainces tell managers such things as the efficiency of labor and material usages, as well as the price variances. Hope this helps, but there's tons of info out there for you to find.
