Cost Exam 3
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11 terms
Terms | Definitions |
|---|---|
 Material Price Variance | difference between budgeted cost of material and actual costs of materials |
| Material Quantity Variance | Difference between budgeted quantity and actual quantity |
| Labor Rate Variance | Difference between labor costs budgeted and actual labor costs |
| Labor Efficiency Variance | Difference between labor hours budgeted and actual labor hours |
| Standard Quantity Allowed | Take whatever budgeted price it applies to and multiply that by the quantity produced |
| What caused the volume variance? | The over of under application of fixed MOH |
| Volume Variance Calculate | To calculate find the difference between planned production and actual production and multiply by Fixed MOH rate and standard hours (if labor hours are driver) or mult planned budget * multiply by driver and Fixed MOH rate then actual production (times driver and rate) to get Volume Variance |
| Volume Variance over/under | under applied: unfavorable over applied: favorable |
| Total Applied to WIP | actual output x standard hours/unit x overhead application rate |
| Variable Overhead Efficiency Variance (VMOH Efficiency) | (Activity x Driver) - Actual DL Used = y Then: y * Standard Rate VMOH = VMOH Efficiency |
| Material Price Variance Attributed | Subtract Actual price of materials per unit by standard price per unit and multiply by actual units used |
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