Managerial Accounting: Standard Costs and Variances

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

Standard Cost per Unit

Calculated the same way for all three variable manufacturing costs.

Materials Price Variance

Measures the difference between an input's actual price and its standard price, multiplied by the actual quantity purchased.

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.

Standard Quantity Allowed or Standard Hours Allowed

Refers to the amount of an input that should have been used to manufacture the actual output of finished goods produced during the period.

Standard Cost Card

Shows the standard quantity (or hours) and standard price (or rate) of the inputs required to produce a unit of a specific product

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 like scrap and spoilage

Standard Hours per Unit

The amount of direct-labor hours that should be used to produce one unit of finished goods

Standard Rate per Unit

The company's expected direct labor wage rate per hour, including employment taxes and fringe benefits

Quantity Variance

The difference between how much of an input was actually used and how much should have been used and is stated in dollar terms using the standard price of the input.

Price Variance

The difference between the actual amount paid for an input and the standard amount that should have been paid, multiplied by the actual amount of the input purchased.

Standard Price per Unit

The price that should be paid for each unit of direct materials and it should reflect the final, delivered cost of those materials.


संबंधित स्टडी सेट्स

chapter 6: real estate investments

View Set

Lesson 21: A Dividing Nation & Lesson 22: The Civil War

View Set

Chapter 9: Group Life Insurance, Retirement Plans, and Social Security Disability Program

View Set

Fundamentals of Networking Technologies - Competency 2 - Practice Test

View Set

NSG 245- Ch 22 Management Upper Respiratory Tract Disorders

View Set

504 Exam 5: Leik Practice Questions

View Set