Outline 2 potential causes for each of the material and labour variances calculated above (Do not explain the total variances).  Explain the possible relationship between the material price and usage variances. Distinguish between ideal and attainable standards and indicate which is the better one to use  Give reasons for your answers

Q: The management of Al Safa Production LLC requested you to identify from the following how direct…

A: Standard costing means where standard is set for various cost element and actual cost is then…

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Q: What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Round your…

A: Formula: Direct Labor Rate Variance= (SR-AR)AT Direct Labor Time Variance= (ST-AT)SR Direct Labor…

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A: The variance is the difference between standard and actual production data of the production. Direct…

Q: t variances. Select the required formulas, compute the cost variances for direct materials and…

A: Variiances ariise when the actual results differs  from standard or budgeted results. There are…

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A: Difference of actual and standard cost is measured to calculate the variance. The variances of cost…

Q: Requirement 2. Calculate the direct materials cost variance and the direct materials efficiency…

A: The variance is the difference between the standard data and actual production data for the period.

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Q: Compute the direct material price variance for the year (indicate the ef ecting "F" for favorable…

A: Overheads are the various indirect material, labour and other costs incurred during a manufacturing…

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A: Direct labor spending variance: A spending variance is the difference in actual direct labor cost…

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A: Material yield variance is the difference of actual material used and standard quantity estimated to…

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A: Direct labor rate variance refers to the difference between actual and standard cost of direct labor…

Q: 2. present the analysis of the following variances for October: a.Direct materials price quantity…

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A: The variance is the difference between actual cost of production and standard cost of production.

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A: Direct labor: Direct labor includes the wages of the employees who are directly involved in…

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A: Solution:- a)Calculation of Material Cost variance as follows under:- It is difference between the…

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Q: 1. Compute the following variances for May: a. Materials price and quantity variances. b. Labor rate…

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A: Direct Material Variance Materials Price Variance- A variance which shows the difference between…

Q: A D 1 Chapter 09: Applying Excel 2 3 Data Exhibit 9-8: Standard Cost Card 4 Inputs Standard Quantity…

A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

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Q: (b) Explain the reasons why Carad Co would be interested in the material price planning variance and…

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Q: 3. Which of the following variances is least likely to be controlled by manager?   a)Materials usage…

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A: 1. Compute the price and quantity variances for direct materials.

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A: Material Price Variance Material Price variance is defined as the difference between Actual price…

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A: Variances are calculated by comparing the actual results with the standard set.

Q: Which of the following is the difference between the actual cost of materials and thematerials cost…

A: Total material variance = Actual cost of materials - Budgeted cost of materials at actual level of…

Q: (1) Compute the direct materials price and quantity variances. (Indicate the effect of each variance…

A: Solution: Direct material quantity variance is also called as direct material usage or efficiency…

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A: Variance analysis: It is the technique in budgeting that allows for analysis of the variances…

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A: Material spending variance = material quantity variance + Material price variance

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A: Variance can be described as a difference between actual amount of costs incurred and budgeted…

Q: Compute the direct labor rate and efficiency variances and identify each as favorable or…

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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.