See fixed manufacturing overhead volume variance.
See fixed manufacturing overhead volume variance.
See fixed manufacturing overhead volume variance.
What is the production volume variance? Author: Harold Averkamp, CPA, MBA Definition of Production Volume Variance The production volume variance is associated with a standard costing system used by some manufacturers....
What does an unfavorable volume variance indicate? Author: Harold Averkamp, CPA, MBA An unfavorable volume variance indicates that the amount of fixed manufacturing overhead costs applied (or assigned) to the...
Our Explanation of Standard Costing uses an easy-to-relate to example for illustrating a manufacturer's standard costs and variances. Also provided is a chart which indicates each variance, what it tells you, and where...
A variance arising in a standard costing system that indicates the difference between the standard amount of fixed manufacturing overhead for the good units produced (standard hours times standard rate) and the budgeted...
statements? Why do manufacturers use standard costs? What does the direct labor efficiency variance tell us? What do overabsorbed and underabsorbed mean? What is the production volume variance? What is a BOM? What...
overhead spending and budget variances, and the production volume variance are generally not related to the efficiency of the operations. On the other hand, the materials usage variance, the labor efficiency variance,...
of the lesser quality of materials, this can also mean an unfavorable variable overhead efficiency variance. If the volume of output is curtailed by the quality of the materials, there could possibly be a fixed overhead...
costs? What is practical capacity? What does stepped cost mean? What are net incremental cash flows? What is the production volume variance? What is a BOM? What is theoretical capacity? What is a product cost? What is...
Our Explanation of Standard Costing uses an easy-to-relate to example for illustrating a manufacturer's standard costs and variances. Also provided is a chart which indicates each variance, what it tells you, and where...
of a product? What does an unfavorable volume variance indicate? Is a favorable variance always an indicator of efficiency in operation? What is a product cost? Can a cost be both a direct cost and an indirect cost? Why...
Sometimes referred to in the context of cost or expense behavior such as “variable expenses increase as volume increases.” In this context volume might be an activity such as the number of machine hours, the...
as the fixed overhead spending variance. Fixed overhead costs are the indirect manufacturing costs that are not expected to change when the volume of activity changes. Some examples of fixed manufacturing overhead...
An allocation of indirect costs based on the units of production, the number of machine hours, the number of labor hours, etc.
. Volume Right! 14. A company assigns its variable manufacturing overhead to its products on the basis of direct labor hours. The actual direct labor hours exceeded the standard direct labor hours for the products...
The analysis of how profits change as volume changes. The calculation of the break-even point is a part of cost-volume-profit analysis.
A term used with standard costs to report a difference between actual costs and standard costs. To learn more, see Explanation of Standard Costing.
operations. Examples of Managerial Accounting Topics Managerial accounting topics often include: Job order costing Process costing Absorption costing vs. variable costing Understanding cost behavior and...
What is variance analysis? Author: Harold Averkamp, CPA, MBA Definition of Variance Analysis In accounting, a variance is the difference between an actual amount and a budgeted, planned or past amount. Variance analysis...
What does the direct labor efficiency variance tell us? Author: Harold Averkamp, CPA, MBA This variance tells us how efficient the direct labor was in making the actual output that was produced by the direct labor. The...
What is a favorable variance? Author: Harold Averkamp, CPA, MBA Definition of a Variance In accounting the term variance usually refers to the difference between an actual amount and a planned or budgeted amount. For...
What is an unfavorable variance? Author: Harold Averkamp, CPA, MBA Definition of a Variance In accounting the term variance usually refers to the difference between an actual amount and a planned or budgeted amount. For...
What is a budget variance? Author: Harold Averkamp, CPA, MBA A budget variance results when an actual amount is different from a planned or budgeted amount. A budget variance can occur for revenues and for expenses. Join...
See direct labor efficiency variance.
What is a cost variance? Author: Harold Averkamp, CPA, MBA Definition of Cost Variance Generally a cost variance is the difference between the actual amount of a cost and its budgeted or planned amount. For example, if a...
See direct labor rate variance.
See direct materials price variance.
See direct materials usage variance.
A difference between an actual cost and a budgeted or standard cost, and the actual cost is the lesser amount. In the case of revenues, a favorable variance occurs when the actual revenues are greater than the budgeted...
Accounting reports that identify the differences between standard costs and actual costs, between budget amounts and actual amounts, etc.
The amount by which actual costs exceed the standard costs or budgeted costs. Also, the amount by which actual revenues are less than the budgeted revenues.
See direct labor efficiency variance and variable manufacturing overhead efficiency variance.
See variable manufacturing overhead spending variance and fixed manufacturing overhead budget variance. To learn more, see Explanation of Standard Costing.
See direct materials usage variance. To learn more, see Explanation of Standard Costing.
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