An unfavorable variable overhead spending variance may be caused by   the use of excessive quantities of variable overhead items. the payment of lower prices for variable overhead items used. the use of excessive quantities of the variable overhead allocation base. both the use of excessive quantities of variable overhead items and the payment of lower prices for variable overhead items used.

Q: An objective of responsibility accounting is to: a) Provide information that helps managers make…

A: Answer:-  Responsibility accounting:- Managers are given decision-making power and accountability…

Q: Controllability has little to do with whether a cost is fixed or variable.  Select one: True False

A: Fixed cost is the cost that is related to the production of a good or services. It is the amount…

Q: A favorable activity variance may not indicate good performance because a favorable activity…

A: Favorable activity variance is a term used in project management and cost accounting to describe a…

Q: Sales volume variances are attributable to differences between planned and actual activity volumes,…

A: Sales volume variances are a component of variance analysis used in cost and performance accounting.…

Q: What distinction must be made when computing the materials price variance vs. the materials quantity…

A: The answer for the theory question on material price and quantity variances is discussed hereunder :…

Q: Under the FLSA, what information concerning employees' wages earned must be maintained by the…

A: Payroll Register: Payroll register is a schedule maintained by the company to record the earnings,…

Q: When is the material quantity unfavorable? A.When the actual quantity used is less than the…

A: Material quantity variance =(AQ-SQ)×SP Where as,  AQ = actual quantity used SQ = standard or…

Q: Beyond meaning good or bad for business, can you please explain the mechanics of favorable and…

A: The discrepancy between budgeted and actual figures is referred to as variance in accounting.…

Q: How can the concept of a composite unit be used to explain why an unfavorable total sales-mix…

A: Sales mix variance: The difference between a budgeted and actual sales mix. Sales mix is a…

Q: Samsung monitors its overhead. In an analysis of overhead cost variances, what is the controllable…

A: Controllable Variance:   Controllable Variance is used for the factory overhead variances.…

Q: An unfavorable materials quantity variance indicates that: Multiple Choice standard material price…

A: Unfavorable materials quantity variance means materials has been used more than what was estimated.…

Q: what are the possible causes of adverse Material usage variance

A: The variation in material consumption is determined as the difference between the quantity of actual…

Q: Various difficulties associated with manual cost accounting system,Please explain the below with…

A: As per our protocol we provide solution to the one question only but you have asked multiple…

Q: What would cause an unfavorable price variance? When the actual usage is greater than the standard…

A: The price variance is calculated by the formula: Where,

Q: 5J A favorable direct materials price vVariance coupled with an unfavorable materials usage variance…

A: The materials usage variance is said to be favorable when SQ of materials is more than the actual…

Q: Cost variances are further investigated for price and efficiency variances because: A) It helps to…

A: Cost variances occur when Actual costs differ from Standard costs for materials, labor and overheads…

Q: rd allocation base C. actual and standard overhead rates D. actual units and actual overhead rates

A: Given: To explain the correct option with the given as,

Q: 1. What is the activity variance for the revenue? (Indicate the effect of each variance by selecting…

A: Variance analysis is one of the important technique of management accounting analysis, under which…

Q: Google monitors its fixed overhead. In an analysis of fixed overhead cost variances, what is the…

A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…

Q: Distinguishing between controllable and noncontrollable costs on a performance report may result in:…

A: Controllable cost refers to expenses that can be directly influenced or controlled by an individual…

Q: As a result of cost distortion, some products will be overcosted while other products will be…

A: Solution: Cost distortions occurs when the overhead costs are not properly allocated,  when the…

Q: Determine a detailed list of possible causes of any material, labour or fixed overhead cost…

A: For any manufacturing industry It is important to set standards for the various activities like…

Q: he following sentences relate to achieving the financial goal of cost minimization. Which of the…

A: Cost minimization is a concept by which producers try to figure out how costs should be reduced.…

Q: cost variance

A: Variance analysis plays a key role in the functioning of any company. It lets you identify key areas…

Q: Explain the difference between under-allocated overhead and over-allocated overhead. What causes…

A: Overhead is applied using estimated or budgeted overhead and a base. Actual overhead costs are…

Q: Discuss reasons for the adverse/unfavourable for Direct Material and Labour Rate variances and…

A: Direct material rate variance is the difference between the actual cost of materials and the…

Q: Note: Use the minus sign to indicate negative values (when the budgeted amount is greater than the…

A: In the variance analysis, the actual cost incurred, and the standard cost are compared with each…

Q: Define fixed overhead variance.

A: Fixed Overhead Variance is the difference between actual and absorbed fixed production overheads…

Q: Explain the difference between a controllable and a noncontrollable cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: What circumstances might create distortions where estimated costs are not an accurate representation…

A: The estimated costs are the costs determined through the estimation process on past…

Q: criticly identify the possible causes of labour and material variance

A: Labour Variances: 1. Unskilled or inefficient workers. 2. Unfavourable wage rates. 3. Unexpected…

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.