D Formulas

Question 1

Sales volume variance?

Answer 1

Salex mix variance + sales quantity variance OR (actual volume - budgeted volume) * standard profit per unit

Positive is F

Question 2

What is meant by standard cost?

Answer 2

The planned cost of a unit of a product

Question 3

Are standard costs linked to the original budget?

Answer 3

Yes

Question 4

Sales price variance?

Answer 4

(Actual price - standard price) * actual volume

Positive is F

Question 5

Difference between original and flexed budget?

Answer 5

Flexed budget yues the same cost and revenue rates as the original budget but scales them to match actual output or activity

Question 6

Materials price variance?

Answer 6

Actual materials purchases at standard price - actual materials purchased at actual price

Positive is F

Question 7

Materials usage variance?

Answer 7

(Standard materials for actual production - actual materials used at actual production) * standard price per kg

Positive is F

Question 8

Labour rate variance?

Answer 8

Actual hours paid at standard rate - Actual hours paid at actual rate

Positive is F

Question 9

Idle time variance?

Answer 9

(Hours worked - hours paid) * standard hourly rate

Positive is F

Question 10

Labour efficiency variance?

Answer 10

(Standard labour hours for actual production - actual labour hours for actual production) * standard rate per hour

Positive is F

Question 11

Variable overhead rate variance?

Answer 11

(Labour hours worked × standard variable overhead rate per hour) - actual variable overhead cost

Positive is F

Question 12

Variable Overhead Efficiency Variance?

Answer 12

(Standard labour hours for actual production - labour hours worked) * standard variable overhead rate per hour

Positive is F

Question 13

Fixed Overhead Expenditure Variance?

Answer 13

(Budgeted fixed cost - actual fixed cost)

Positive is F

Question 14

Fixed Overhead Volume Variance?

Answer 14

(Budgeted production - actual production) * standard fixed overhead rate per unit

Negative is F

Question 15

Fixed Overhead Capacity Variance?

Answer 15

(Budgeted labour hours - actual labour hours) * standard rate per hour

Negative is F

Question 16

Fixed Overhead Efficiency Variance?

Answer 16

(Standard hours for actual output - actual labour hours) * standard rate per hour

Negative is F

Question 17

Which variances don’t include multiplication?

Answer 17

Materials Price
Labour Variance
Variable overhead rate variance
Fixed overhead variance

Question 18

Is hours worked or hours paid used for efficiency variances?

Answer 18

Hours worked

Question 19

What is material usage variance split into?

Answer 19

Mix variance

Yield variance

Question 20

Basis for mix variance?

Answer 20

The materials may be used in different proportions to the standard. This may lead to a different average cost

Question 21

Basis for yield variance?

Answer 21

The standard may assume that there is some level of standard loss. The actual loss may be more or less than the standard loss

Question 22

Mix variance calculation

Answer 22

(Actual quantity in standard mix - actual quantity used) * standard cost

Question 23

Yield variance calculation

Answer 23

(Standard quantity in actual output - actual quantity in standard mix) * standard cost

Question 24

Sales mix variance?

Answer 24

(Actual sales - actual sales in budgeted mix) * standard contribution

Question 25

Sales quantity variance?

Answer 25

(actual sales quantity in budgeted proportions − budgeted sales quantity) × standard contribution per uni

Question 26

What is the sales volume split into?

Answer 26

Market size variance and market share variance

Question 27

Market size variance?

Answer 27

(Revised budgeted quantity - budgeted sales quantity) * standard contribution per unit

Question 28

Market share variance?

Answer 28

(actual sales quantity - revised budgeted quantity) * standard contribution per unit

Question 29

Planning price variance?

Answer 29

Actual materials at original standard price - Actual materials at revised standard price

Question 30

Operational price variance?

Answer 30

Actual materials at revised standard price - Actual materials at actual price

Question 31

Planning usage variance?

Answer 31

(Original standard quantity for actual output - Revised standard quantity for actual output) * at original standard price per kg

Question 32

Operational usage variance?

Answer 32

(Revised standard quantity for actual output - Actual quantity used) * At original standard price per kg