Variances

Question 1

Efficiency Variance

Answer 1

Diff. between actual unit usage and expected unit usage

Question 2

Activity Variances

Answer 2

Diff. between PLANNING budget and FLEXIBLE budget

Question 3

Spending Variances

Answer 3

Diff. between FLEXIBLE budget and ACTUAL results

Question 4

Variable OH Eff. Variance

Answer 4

(AH-SH) * SR

Question 5

Variable OH Rate Variance

Answer 5

(AR-SR) * AH

Question 6

Materials Price Variance

Answer 6

AQ * (AP-SP)

act. quantity * (act. price/unit - std. price/unit)

Question 7

Materials Quantity Variance

Answer 7

SP * (AQ-SQ)

std. price/unit * (act. quantity - std. quantity)

Question 8

Labor Rate Variance

Answer 8

AH * (AR-SR)

Act. hrs * (act. rate - std. rate)

Question 9

Labor Efficiency Variance

Answer 9

SR * (AH-SH)

Question 10

Budget Variance (F OH)

Answer 10

Actual fixed overhead - Budgeted fixed overhead