B. Given the possible causes of the variances, identify the variance for each number and whether Favorable or Unfavorable. Form 2 columns to write your answers. State whether variance is Favorable or Unfavorable Causes Give the Material Variance Name
B. Given the possible causes of the variances, identify the variance for each number and whether Favorable or Unfavorable. Form 2 columns to write your answers. State whether variance is Favorable or Unfavorable Causes Give the Material Variance Name
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 5MC: This variance is the difference involving spending less, or using less than the standard amount. A....
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:B. Given the possible causes of the variances, identify the variance for each number and whether
Favorable or Unfavorable. Form 2 columns to write your answers.
State whether variance is
Favorable or Unfavorable
Causes
Give the Material Variance
Name
substandard material, quantity
1.
discount, negotiated better
price, quantity discount, or price
drop
higher-quality material, price
2.
2.
increase, and negotiated poorly
Give the Material Variance
Name
higher-quality material, better-
qualified employees, or a
change in manufacturing
3.
3.
process
lower-quality material, less-
qualified employees, or a
change in manufacturing
4.
process
Give the Labor Variance Name
less-qualified employees or a
change in quality level of
employees due to a change in
5.
5.
process
more-qualified employees, a
change in contract with
employees, or a change in
manufacturing process that
changes the level of employees
needed
6.
Give the Labor Variance Name
better material, higher-quality
employees, or a change in
7.
7.
process
lower-quality material, less-
qualified employees, or a
change in the manufacturing
8.
8.
process
6.
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