The revenue and spending variances are the differences between the flexible budget and the actual results for the period. True False

Total variance in variance analysis compares ● Flexible budget and actual outcome Static budget and flexible budget Flexible budget and static outcome Static budget and actual outcome

A labor rate variance is due solely to the difference   Between budgeted materials price and actual materials price   Between budgeted direct labor hours and actual direct labor hours   Between budgeted sales volume and actual sales volume   Between budgeted labor price and actual labor price

Which of the following statements about fixed overhead variances is FALSE? O The budget variance represents the difference between the original budgeted fixed overhead cost and the applied fixed overhead cost during a period. O An unfavorable volume variance means that a firm's production facilities were under-utilized by producing less units of products than budgeted. O The volume variance is a measure of facility utilization. O Fixed overhead variances consist of a budget variance and a volume variance. Ne: Previous

Comment on the statement “A favourable variance is always better than an adverse variance” by considering one behavioural issue involved.

Gross profit volume variance is derived by A. combining sales and cost of sales variances. B. combining sales volume and cost volume variances. C. deducting cost price variance from gross profit variance. D. deducting sales price variance from gross profit variance.

If production is more or less than the standard volume, is it possible that no flexible-budget or production-volume variances would exist? Explain.

The fixed overhead spending variance can be calculated by taking: 1. The difference between the original budget and the actual results. 2. The difference between the flexed budget and the actual results. Which of the above statements are correct? A. Both 1 and 2 B. Neither 1 nor 2 C. 2 only O D. 1 only ...