When computing variances from standard costs the difference between actual and standard price multiplied by actual quantity used yield a?
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This is a Premium Document. Some documents on StuDocu are Premium. Upgrade to Premium to unlock it. Do you want full access? Go Premium and unlock all 52 pages Chapter 7--Standard Costing and Variance Analysis TRUE/FALSE 1.Specifications for materials are compiled on a bill of materials. ANS:TDIF:EasyOBJ:7-2 2.Specifications for materials are compiled on a purchase requisition. ANS:FDIF:Easy OBJ:7-2 3.An operations flow document shows all processes necessary to manufacture one unit of a product. ANS:TDIF:EasyOBJ:7-2 4.A standard cost card is prepared after manufacturing standards have been developed for direct materials, direct labor, and factory overhead. ANS: TDIF:EasyOBJ:7-2 5.A standard cost card is prepared before developing manufacturing standards for direct materials, direct labor, and factory overhead. ANS:FDIF:EasyOBJ:7-2 6.The total variance can provide useful information about the source of cost differences. ANS:FDIF:EasyOBJ:7-2 7.The total variance does not provide useful information about the source of cost differences. ANS:TDIF:EasyOBJ:7-2 8.The formula for price/rate variance is (AP - SP) x AQ ANS:T DIF:ModerateOBJ:7-2 9.The formula for price/rate variance is (AP - SP) x SQ ANS:FDIF:ModerateOBJ:7-2 10.The price variance reflects the difference between the quantity of inputs used and the standard quantity allowed for the output of a period. ANS: FDIF:ModerateOBJ:7-2 11.The price variance reflects the difference between the price paid for inputs and the standard price for those inputs. ANS:TDIF:ModerateOBJ:7-2 248 Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. 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Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. What is the difference between the actual quantity and the standard quantity multiplied by the standard price?Price variance is the actual unit cost of a purchased item, minus its standard cost, multiplied by the quantity of actual units purchased. Price variance is a crucial factor in budget preparation.
When there is a difference between the actual quantity and the standard quantity This is called a?2. Quantity variance. The quantity variance is the difference between the actual quantity of inputs used at the standard price and the standard quantity of inputs allowed for the actual output at the standard price.
When the actual cost is more than standard cost then it is what variance?If the actual cost is less than the standard cost or the actual profit is higher than the standard profit, it is called favorable variance. On the contrary, if the actual cost is higher than the standard cost or profit is low, then it is called adverse variance.
What do you call the variation in the use of materials at the actual price and the use of materials at the standard price?Direct Materials Price Variance. The direct materials price variance compares the actual price per unit (pound or yard, for example) of the direct materials to the standard price per unit of direct materials.
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