4. Based on the variance analysis in Problem #3, complete the following statements about possible causes for the favorable and/or unfavorable variances: For the direct materials price variance, the [?] could be due to [?] . For the direct materials quantity variance, the [?] could be due to [?] . For the direct labor rate variance, the [?] could be due to [?] . For the direct labor efficiency variance, the [?] could be due to [?] .

4. Based on the variance analysis in Problem #3, complete the following statements about possible causes for the favorable and/or unfavorable variances: For the direct materials price variance, the [?] could be due to [?] . For the direct materials quantity variance, the [?] could be due to [?] . For the direct labor rate variance, the [?] could be due to [?] . For the direct labor efficiency variance, the [?] could be due to [?] .

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 6EA: Use the information provided to answer the questions. All material purchased was used in production....

See similar textbooks

Similar questions

When is the material quantity variance favorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
When is the material price variance unfavorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
When is the material price variance favorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
When is the labor rate variance unfavorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
What are some possible reasons for a material price variance? A. substandard material B. labor rate increases C. labor rate decreases D. labor efficiency
Acme Inc. has the following information available: A. Compute the material price and quantity, and the labor rate and efficiency variances. B. Describe the possible causes for this combination of favorable and unfavorable variances.
What are some possible causes of a material quantity variance?
What two factors must be considered when breaking down a variance into its components?
What is the significance of a production-volume variance?
Identify several causes of a favorable material price variance.
What causes the material quantity variance?
When should a standard cost variance be investigated?