Pick out the two most significant variances that you computed in (1) above. Explain tMs. Dunn possible causes of these variances. Summary of Variance:Material Price3000FavMaterial Quantity21000UnfavLabour rate11800UnfavLabour Efficiency3200favVariable OH Rate590UnfavVariable Oh efficiency300favOverall Net variance26890Unfav

The difference between the standard figures and the actual results are called variances.

Answered: Pick out the two most significant…

Pick out the two most significant variances that you computed in (1) above. Explain tMs. Dunn possible causes of these variances

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 23Q: Identify several causes of a favorable material quantity variance.

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Question

Pick out the two most significant variances that you computed in (1) above. Explain tMs. Dunn possible causes of these variances.

Summary of Variance:
Material Price
3000
Fav
Material Quantity
21000
Unfav
Labour rate
11800
Unfav
Labour Efficiency
3200
fav
Variable OH Rate
590
Unfav
Variable Oh efficiency
300
fav
Overall Net variance
26890
Unfav

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