ch 8
revenue variance
the difference between the actual total revenue and what the total revenue should have been, given the actual level of activity for the period
standard rate per hour
the expected direct labor wage rate per hour
standard direct labor cost
standard rate * standard price
standard direct materials cost
standard wuantity * standard price
standard quantity per unit
the amount of direct materials that should be used for each unit of finished product, including an allowance for normal inefficiencies (scrap spoilage)
spending variance
the difference between the actual amount of the cost and how much a cost should have been, given the actual level of activity.
standard price per unit
defines the price that should be paid for each unit of direct materials and should reflect the final, delivered cost of those materials
labor rate variance
measures the difference between the actual hourly rate and the standard hourly rate, multiplied by the actual number of hours worked during the period
labor efficiency variance
measures the difference between the actual hours used and the standard hours allowed for the actual output, multiplied by the standard hourly rate
variable overhead efficiency variance
measures the difference between the actual level of activity and the standard activity allowed for the actual output, multiplied by the variable part of the predetermined overhead rate
materials quantity variance
measures the difference between the actual quantity of materials used in production and the standard quantity of materials allowed for the actual output, multiplied by the standard price per unit of materials
variable overhead rate variance
measures the difference between the actual variable overhead cost incurred during the period and the standard cost that should have been incurred based on the actual activity of the period