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What is the fixed manufacturing overhead budget variance equal to?
Fixed manufacturing overhead budget variance is?
What if budgeted manufacturing overhead is not equal to applied manufacturing overhead?
There is a variance.
What is the difference between variable overheads cost variance andfixed overheads cost variance?
Variable overhead cost variance is that variance which is in variable overheads costs between the standard cost and the actual variable cost WHILE fixed overheads cost variance is variance between standard fixed overhead cost and actual fixed overhead cost.
What is cost variance?
Cost variance means the difference in actual cost from standard cost and very important part of standard costing and budgeting analysis.
What does Standard cost card shows in cost accounting?
Standard Cost Card shows that how much standard cost of direct material, direct labour and manufacturing overheads and other costs are required to manufacture product or service and it is helpful in control stage and variance analysis.
What is One potential cause of Total Manufacturing Overhead Variance?
If the estimated materials, labor or overhead costs allocated for a manufacturing order is different from the actual cost of the MO then the potential result is a Manufacturing Overhead Variance.
What is the fixed manufacturing overhead budget variance equal to?
Fixed manufacturing overhead budget variance is?
What if budgeted manufacturing overhead is not equal to applied manufacturing overhead?
There is a variance.
What is the difference between variable overheads cost variance andfixed overheads cost variance?
Variable overhead cost variance is that variance which is in variable overheads costs between the standard cost and the actual variable cost WHILE fixed overheads cost variance is variance between standard fixed overhead cost and actual fixed overhead cost.
What is favourable variance?
A favorable variance is the difference between the budgeted or standard cost and the actual cost. If the actual cost is less than budgeted or standard cost, it is a favorable variance.
What do you mean by labor cost variance?
Labor cost variance means the difference between standard labor cost and actual labor cost.
What is cost variance?
Cost variance means the difference in actual cost from standard cost and very important part of standard costing and budgeting analysis.
What is the difference between negative price variance and volume variance?
Negative price variance is when the cost is less than budgeted. Volume variance is a variance in the volume produce.
What is favourable?
A favorable variance is the difference between the budgeted or standard cost and the actual cost. If the actual cost is less than budgeted or standard cost, it is a favorable variance.
What does Standard cost card shows in cost accounting?
Standard Cost Card shows that how much standard cost of direct material, direct labour and manufacturing overheads and other costs are required to manufacture product or service and it is helpful in control stage and variance analysis.
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
In manufacturing what is capitalized variance?
In a manufacturing context, capitalized variances are the portion of a manufacturing variance that gets capitalized as part of the inventory values. Considering a simple start up example, suppose that in order to manaufacturer a certain quantity of finished goods, your standard or Bill of Materials (recipe) calls for $100 of raw materials to produce 10 units. Just before you start manufacturing your assistant slips and spills the $100 worth of raw materials on the floor. After picking him up off the floor and cleaning up the mess, you once again set out to make those 10 units. This time you collect the raw materials and the process flows perfectly such that you have the 10 units at what your standard cost said you should have made them for. You do no more manufacturing in the month and at the end end you have sold 5 of the 10 units. Now when you evaluate your month end inventory you realize that you have less raw materials on the shelf than your standards say you should have. You then remember the accident and try to figure out how you are going to account for the spill. If you assume your only MFG cost is materials, your Cost of Goods Produced at standard would be $100 (for the 10 units) and to account for the spill, you would have an efficiency variance (it took more materials because of the spill) of $100. Your cost of Goods Sold at standard would be $50, and then you have to figure out how much of the $100 variance you should recognize in the current period and how much of the spill is a CAPITALIZED VARIANCE. Under the accounting theory of matching, Revenue with Expense, the proper accounting is to recognixe half of the negative variance of $50 in the current month (since half of the goods produced were sold to Third parties in the month) and capitalize the remaining $50 negative variance along with the standard cost of the product on the balance sheet. When you sell the remaining 5 units, they will have a cost basis of $100 ($50 at standard and $ recognition of the $50 negative variance). This was a very simple example and other rules apply that would require certain variances that were one time in nature to be excluded from the calculations.
