Analyse the variances
Q: Gauging the Favorableness of Variances When variances occur, they are described as being either…
A: Direct Labor Rate Variance=Budgeted cost for the actual hours worked-Actual cost for the actual…
Q: Why do we need to have a "base" for the computation of different types of variances under gross…
A: Gross Profit: It is calculated by subtracting operating expenses from the operating income for the…
Q: What is variance analysis? Explain?
A: Variance Analysis: Variance analysis is the process of ascertaining the deviations between actual…
Q: Gauging the Favorableness of Variances When variances occur, they are described as being either…
A: Given information Actual cost for actual hours of employees = $4,300,000 Budgeted cost for actual…
Q: for Julu that includor reveDue and spending variances and activity variances. (Indicate
A:
Q: Assume that every asset has the same expected return and variance. Furthermore, all assets have the…
A: Variance is a statistical tool used to measure the extent to which the returns are spread from the…
Q: significant of variance analysis in cost management.
A: Variance analysis is a tool in cost management to compare and analyze variations in budgeted costs…
Q: Explain favourable variance.
A: Definition: Variance analysis: Variance analysis is the process of evaluating the differences…
Q: Calculate the following and determine if variances are favorable
A: Compute the total standard material cost.
Q: hat ty
A: Variance analysis is a summary statement which demonstrate the difference between planned…
Q: Explain what is meant by and the limits of mean variance analysis when it comes to investment…
A: Mean-Variance Analysis is an investment decision tool technique that is used by investors to make…
Q: If the total materials variance for a given operation is favorable, why must this variance be…
A: Favorable variance means the variance has a positive impact on the budgeted profitability of the…
Q: In two or three paragraphs explain the purpose of variance analysis and its benefits and drawbacks.
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Q: Based on the content of this module, what advice would you give to someone starting out with…
A: Variance analysis is used to identify the variations between data or figures of two balances of the…
Q: Calculate the variance for Shell Oman
A: Variance of return means the deviation in returns. This deviation occurs due to different market and…
Q: Explain the concept of iso-expected return lines, iso-variance ellipses, and the critical line and…
A: Minimum variance frontier: It is a frontier that identifies those portfolios that have a minimum…
Q: Write down two possible causes for each variance.
A: Variance refers to the differs between the budgeted and actual. It may be favourable and…
Q: Can someone give an example of Mean-Variance analysis?
A: Example for mean-variance analysis:
Q: Give an example of a Direct Material Price Variance with figures and calculate the variance
A: Direct Material Price Variance is the difference between actual material cost and standard cost of…
Q: Differentiate between variance analysis and sensitivity analysis
A: Managers of small businesses can benefit from both variance and sensitivity analyses when trying to…
Q: Q. Provide your own numerical data with the calculation and analysis of Material Variances?
A: Variance analysis: It is the quantitative study of finding the difference between budgeted data and…
Q: sider the following two sets of data: A = [0.5, -0.6, 0.1, 10] & B = [6, 4, 4.5, 5.5]. Which data…
A: Variance is a measure of risk in finance terms. Variance measures degree of spread for a given data.
Q: Can someone give an example or scenario of mean-variance analysis?
A: Introduction: Mean-variance analysis is a method used by investors to make investment decisions on…
Q: What is the relationship between management by exception and variance analysis?
A: Management by Exception: Management by exception is the process of finding the deviations in the…
Q: Explain Measures of Variance and Risk?
A: Variance tests normal or normal variability. Variability is volatility for investors, and volatility…
Q: What should be the organizational purpose for identifying and calculating variances?
A: Management accounting: It is the process of preparing the reports of a business operations helping…
Q: Draw an efficient frontier and show minimum variance portfolio (MVP) on that curve.
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Q: what is a variance? b. when might a favorable variance not be a good outcome?
A: Standard Costing System: The Standard Costing system provides for cost estimation, budgeting for…
Q: Describe the procedure to compute the variance of return for a project?
A: Variance is ascertained as follows: The mean worth is dictated by including all the information…
Q: How does variance analysis help in continuous improvement?
A: Variance Analysis: Variance analysis is the process of ascertaining the deviations between actual…
Q: Pick out the two most significant variances that you computed in (1) above. Explain tMs. Dunn…
A: The difference between the standard figures and the actual results are called variances.
Q: re all variances investigated? Why or why not?
A: Variance: A variance reflects the degree by which the actual results vary from the anticipated or…
Q: Further analyze harlows revised variances, isolating underlying potential casual factors. How do…
A: 1.Direct material Price variance =(Std. Price/qty.-Actual price/qty)*Actual qty. 2. Direct material…
Q: Please calculate the variance
A: Expected Return or mean is the average return of the data given. Risk is the volatility around the…
Q: How frequently do you believe that firms should conduct variance analysis? Explain why?
A: Variance analysis a technique of control that is used by organisations to compare actual costs with…
Q: Comment on the statement “A favourable variance is always better than an adverse variance” by…
A: Variance is the difference between actual numbers and budgeted numbers. Variance can be favourable…
Q: Which of the following is FALSE regarding variances? O A favorable variance, when it occurred, are…
A: Standard costing refers to the method of costing used to find out the variances. Standard overhead…
Q: Explain how you find the portion of the mean-variance-frontier that is the efficient frontier and…
A: There are two parts of portfolio one is return and another is risk.
Step by step
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- Use the following information to calculate the materials price variance: Direct material purchased and used (kgs) 30,000 Cost of direct material 84,000 Unfavourable direct materials usage variance 3,000 Standard quantity of direct materials allowed for production (kgs) 29,000 Select one: a. $6,000 U b. $2,800 F c. $6,000 F d. $2,800 UDATA Resources' requirements, standard pounds per unit Resources' standard price, per pound Units produced Resources used for production, pounds 2.5 $3.35 15,000 36,900 $3.55 Resources' actual price, per pound Using formulas and cell references, perform the required analysis, and input your an: Amount column. Select the corresponding type of variance in the dropdowns in cells results for the green entry cells (C15:C17) into the appropriate fields in CNOWV2 for Amount |Favorable or Unfavorable a. Direct materials price variance b. Direct materials quantity variance c. Direct materials cost variance Favorable or Unfavorable Favorable or UnfavorableThe standard material costs of finished product PEP are as follows: 2 kg raw material A @ R10 per kg Actual information: Purchase of raw material A 2 000 kg @ R9.50 per kg Issue of raw material A 1 200 kg Units of product PEP manufactured 280 units Required Calculate the following in respect of material A (a) Purchase price variance (3) (b) Issue price variance (c) Quantity variance (d) Total variance.
- Data Table AC × AQ SC × AQ SC × SQ $0.65 per pounds $0.30 per pounds $0.30 per pound × × × 7,600 pounds 7,600 pounds 7,200 pounds $4,940 $2,280 $2,160 Cost Efficiency Variance Variance $2,660 U $120 U . Record Smithson's direct materials journal entries. Assume purchases were made on account. 2. Explain what management will do with this variance information.The standard cost of a chemical mix is as follows-4 tons of material P at Rs. 20 per ton6 tons of material Q at Rs. 30 per tonActual cost for a period is as under-4.5 tons of material P at Rs. 15 per ton5.5 tons of material Q at Rs. 34 per tonActual yield is 5.5 tons.Compute all material variance. Also show workings.An adverse materials price variance of £1,001 has been reported for the period. Actualexpenditure on materials was £20,251 and 1,540 kg were purchased. What must be the standardcost per kg?a. £13.15b. £13.50c. £12.50d. £13.80
- Assume the following: • The standard price per pound is $3.00. • The actual quantity of materials purchased is 60,000 pounds. • The actual quantity of materials used in production is 62,000 pounds. • The actual purchase price per pound of materials was $3.10. What is the materials price variance? Multiple Choice O O $6,000 F $6,200 F $6,000 U $6,200 U28) Variance analysis The standard materials cost of product D456 is as follows. Rwf "000 Material X 3 kg at Rwf2,000 per kg 6 5 kg at Rwf3,600 per kg Material Y 18 24 During period 2, 2,000 kg of material X (costing Rwf4,100,000) and 2,400 kg of material Y (costing Rwf9,600,000) were used to produce 500 units of D456. Required Calculate the following variances. a) Price variances b) Mix variances c) Yield variances – in total and for each individual material Activate WDirect materials variances Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is 3.75 per pound. If 15,000 units used 36,000 pounds, which were purchased at 4.00 per pound, what is the direct materials (A) price variance, (B) quantity variance, and (C) cost variance?
- Given the following information: 2a) the standard material costs of finished product X are as follows 2kg raw material Y @R10 per kg Actual information Purchases of raw material Y 1000kg @R9, 50 per kg Issues of raw material Y 600 kg Units of product X manufactured 290 units Calculate the following variances in respect of material i) Purchase price variance ( 5) ii) Issue price variance (5) iii) Quantity variance (5) iv) Total material variance if an issue price variance is used (5)Task 2. Calculate Material price variance. Material usage variance and material cost variance from the following data. Analyse the probable reasons for adverse variances if any. Standard Material for 70 kgs of finished Goods: 100 kg Price of material OMR 1 per kg Actual Output 210,000 Kg Material used 280,000 kg Cost of material OMR 252,000Information about direct materials cost follows for Jennings Chemicals: Standard price per gallon Actual quantity used $ 56 4,370 gallons 4,400 gallons Standard quantity allowed for production Price variance Required: What was the actual purchase price per gallon? Note: Round your answer to 2 decimal places. > Answer is complete but not entirely correct. $ 52.10 per gallon Actual purchase price $ 17,043 U