Chapter 7 - Cost Accounting Flashcards
1
Q
What is the equation to find the direct materials price variance?
A
Actual quantity (Standard price - actual price)
2
Q
What is the equation to find direct materials usage variance?
A
Standard price ( Standard quantity - actual quantity)
3
Q
What is the equation to find direct labor rate variance?
A
Actual hours (Standard rate - actual rate)
4
Q
What is the equation to find direct labor efficiency variance?
A
Standard rate ( Standard hours - actual hours)
5
Q
What is the equation to find the overhead spending variance?
A
(Actual direct labor hours x overhead rate + budgeted fixed overhead) - actual overhead
6
Q
A
