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Since actual usage of the direct material was greater than the standard allowed, the excess usage is called an unfavorable variance

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Q: What type of variance is excess usage?
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Related questions

What causes material usage variance?

Material usage variance can be caused due to waste. Quality issues, such as defects, can result in material usage variance.


Is overhead spending variance affected by excessive usage or waste of overhead materials?

True


Causes material usage variance?

may be material price is higher than the stander ed price


An unfavorable material quantity variance indicates?

actual usage of materials exceeds the standard material allowed for output


What difference between a favorable variance and an unfavorable variance?

Favourable variance is that variance which is good for business while unfavourable variance is bad for business


Why standard deviation is more often used than variance?

Both variance and standard deviation are measures of dispersion or variability in a set of data. They both measure how far the observations are scattered away from the mean (or average). While computing the variance, you compute the deviation of each observation from the mean, square it and sum all of the squared deviations. This somewhat exaggerates the true picure because the numbers become large when you square them. So, we take the square root of the variance (to compensate for the excess) and this is known as the standard deviation. This is why the standard deviation is more often used than variance but the standard deviation is just the square root of the variance.


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 are the variances in a 4 variance analysis?

efficiency variance, spending variance, production volume variance, variable and fixed components


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


Which is not a measure of dispersion range or variance?

Variance


What is Assumptions for Variance Heterogeneous?

Unequal in Variance


What is Assumptions for Variance Homogeneous?

Equal in Variance