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