Flashcards Becker U4 P1
U4 C.1. Cost and Variance Measures: Part 1 Question What is the formula for sales volume variance? Answer U4 C.1. Cost and Variance Measures: Part 1 Question What is the formula for sales price variance? Answer U4 Page 2 of 10 FC-00353 CSO: 1C1e LOS: 1C1k #4 FC-00352 CSO: 1C1e LOS: 1C1k #3 1. 2. 1. 2. U4 C.1. Cost and Variance Measures: Part 2 Question Identify the direct materials variances (two-way variance analysis). Answer Direct materials price variance = (AP − SP) × AQ where: AP = actual price SP = standard price AQ = actual quantity purchased Direct materials quantity usage variance = (AQ − SQ) × SP where: AQ = actual quantity used SQ = standard quantity allowed SP = standard price U4 C.1. Cost and Variance Measures: Part 2 Question Identify the direct labor variances (two-way variance analysis). Answer Direct labor rate variance = (AR – SR) × AH Direct labor efficiency variance = (AH – SH) × SR where: AR = actual labor rate SR = standard labor rate AH = actual hours worked SH = standard hours allowed
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