Standard Costing and Variance Analysis

It is a pre-determined or target unit cost of production.

• Variances

• Standard Cost

• Actual Cost

• Price

It shows the difference between the actual wages paid to labor for the period and the standard wages for all hours worked.

• Price Variance

• Yield Variance

• Material Price Variance

• Labor Rate Variance

When the actual rate or hour exceeds the standard rate or hour, it is called ______ variance?

• Favorable

• Unfavorable

• Efficiency

• Volume

It is the sum of labor mix and yield variances.

• Labor Rate Variance

• Labor Mix Variance

• Labor Efficiency Variance

• Total Labor Variance

What is the variance in which the amount is the same as in the two-way variance method and in the four-way variance analysis?

• Volume Variance

• Price Variance

• Efficiency Variance

• Spending Variance

Actual Overhead - BASH = ?

• Volume Variance

• Controllable Variance

• Efficiency Variance

• Spending variance

The four-way variance method recognizes two variable cost variances and two fixed cost variances.

• True

• False

The management cannot change the existing standard if it is not a good measure of performance.

• True

• False

Volume variance is actually the fixed volume variance, there is no such thing as a variable volume or variable capacity variance.

• True

• False

Fixed overhead spending variance is the difference between actual and budgeted fixed overhead.

• True

• False