If the price paid per unit differs from the standard price per unit for direct materials, the variance is termed a: |
price variance |
Variances from standard costs are usually reported to: |
management |
Periodic comparisons between planned objectives and actual performance are reported in: |
budget performance reports |
The formula to compute direct labor rate variance is to calculate the difference between |
Actual Costs - (Actual Hours Standard Rate) |
The principle of exceptions allows managers to |
focus on correcting variances between standard costs and actual costs |
If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is termed a: |
quantity variance |
A favorable cost variance occurs when |
Standard costs are more than actual costs |
The total manufacturing cost variance consists of: |
Direct materials cost variance, direct labor cost variance, factory overhead cost variance |
A negative fixed overhead volume variance can be caused due to the following except: |
Increase in utility costs |
The total manufacturing cost variance is |
the difference between actual costs and standard costs for units produced |
If the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is termed a: |
time variance |
The formula to compute direct material quantity variance is to calculate the difference between |
(Actual Quantity x Standard Price) - Standard Costs |
The controllable variance measures: |
the efficiency of using variable overhead resources |
The use of standards for nonmanufacturing expenses is: |
not as common as it is for manufacturing costs |
Standards that represent levels of operation that can be attained with reasonable effort are called: |
normal standards |