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Causes material usage variance?
may be material price is higher than the stander ed price
What are the causes direct material quantity variance?
what are some of the causes of material quntity variance of favourable amount
Causes material quantity variance?
causes of labor rate variances
An unfavorable material quantity variance indicates?
actual usage of materials exceeds the standard material allowed for output
Causes of direct material quantity variance?
Some causes of direct material quantity variance are poor quality materials, untrained workers, and lack of supervision. Production managers should look at and determine the causes.
Causes material usage variance?
may be material price is higher than the stander ed price
What are the causes direct material quantity variance?
what are some of the causes of material quntity variance of favourable amount
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
Causes material quantity variance?
causes of labor rate variances
An unfavorable material quantity variance indicates?
actual usage of materials exceeds the standard material allowed for output
Causes of direct material quantity variance?
Some causes of direct material quantity variance are poor quality materials, untrained workers, and lack of supervision. Production managers should look at and determine the causes.
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
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
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.
How do you calculate total material variance?
Total material variance is calculated by comparing the actual cost of materials used to the standard cost of materials that should have been used for the actual production level. The formula is: Total Material Variance = (Actual Quantity x Actual Price) - (Standard Quantity x Standard Price). This variance can be further broken down into material price variance and material quantity variance for more detailed analysis.
What causes a volume variance?
a + or a-
Is overhead spending variance affected by excessive usage or waste of overhead materials?
True
