ch 9

Question 1

how to know if something is favorablee

Answer 1

if the actual is less then the standard then it is favourable

Question 2

how to know if something is unfavorable

Answer 2

if the actual is more then the standard then it is unfavourable

Question 3

what is the material price varaiance equation

Answer 3

(standard price - actual price) x actual quantity (whatever is the larger number will be the front number in the subtraction)

Question 4

what is the material quantity equation (MQV)

Answer 4

(standard quantity - actual quantity) x standard cost (whatever is the larger number will be the front number in the subtraction)

Question 5

direct labour effeincey variance cannot be cuased by what

Answer 5

producing fewer finished units than originally planned

Question 6

A standard cost

Answer 6

is a budget for the production of one unit of a product or service

Question 7

what is the basic trick for setting up the material price equations

Answer 7

basically the subtraction is always going to be standard and actual and you multiply that by actual quantity

Question 8

what is the basic trick for setting up the material quantity equations

Answer 8

the subtraction is always standard and actual quantity the multiplication is of standard cost tho

Question 9

what to always remember for the variance questions

Answer 9

that the unit for the answer is always in dollars

Question 10

direct labour efficency variance

Answer 10

(standard hours - actual hours) x standard rate

Question 11

direct labour price variance

Answer 11

(standard price - actual price) x actual hours