Acct 212 Managerial Accounting, Chapter 9 By Crosson, Needles

Front 1

Direct labor efficiency variance

Back 1

The difference between the standard direct labor hours allowed for good units produced and the actual direct labor hours worked multiplied by the standard direct labor rate. Also called direct labor quantity or usage variance.

Front 2

Direct labor rate standard

Back 2

The hourly direct labor rate that is expected to prevail during the next accounting period for each function or job classification

Front 3

Direct labor rate variance

Back 3

The difference between the standard direct labor rate and the acutal direct labor rate multiplied by the actual direct labor hours worked. Also called direct labor spending variance.

Front 4

Direct labor time standard

Back 4

The expected labor time required for each department, machine, or process to complete the production of one unit or one batch of output.

Front 5

Direct materials price standard

Back 5

A careful estimate of the cost of a specific direct material in the next accounting period.

Front 6

Direct materials price variance

Back 6

The difference between the standard price and the actual price per unit multiplied bythe actual quantity purchased. Also called direct materials spending or rate variance.

Front 7

Direct materials quantity standard

Back 7

An estimate of the amount of direct materials, including scrap and waste, that will be used in an accounting period.

Front 8

Direct materials quantity variance

Back 8

The differene between the standard quantity allowed and the actual quantity used multiplie by the standard price. Also called direct materials efficiency or usage variance.

Front 9

Fixed overhead budget variance

Back 9

The difference between bugeted fixed overhead costs and the overhead costs that are applied to production using the standard fixed overhead rate.

Front 10

Flexible budget

Back 10

A summary of expected costs for a range of activity levels. Also called variable budget.

Front 11

Flexible budget formula

Back 11

An equation that determines the expected, or budgetd, cost for any level of output.

Front 12

Standard costs

Back 12

Realistic estimates of costs based on analyses of both past and projected operating costs and conditions.

Front 13

Standard direct labor cost

Back 13

The standard wage for direct labor multiplied by the standard hours of direct labor.

Front 14

Standard direct materials cost

Back 14

The standard price for direct materials multiplied by the standard quantity for direct materials.

Front 15

Standard fixed overhead rate

Back 15

Total budgeted fixed overhead costs divided by an expression of capcity, usually normal capacity in terms of standard hours or units.

Front 16

Standard overhead cost

Back 16

The sum of the estimates of variable and fixed overhead costs in the next accounting period.

Front 17

Standard variable overhead rate

Back 17

Total budgeted variable overhead costs divide by an expression of capacity, such as the expected number of standard machine hours or standard direct labor hours.

Front 18

Total direct labor cost variance

Back 18

The difference between the standard direct labor cost for good units produced and actual direct labor costs.

Front 19

Total direct materials cost variance

Back 19

The difference between the standard direct labor cost for good units produced and actual direct labor costs.

Front 20

Total fixed overhead variance

Back 20

The difference between actual fixed overhead costs and the standard fixed overhead costs that re applied to good units produced using the standard fixed overhead rate.

Front 21

Total overhead variance

Back 21

The difference between actual overhead costs and standard overhead costs applied.

Front 22

Total variable overhead variance

Back 22

The difference between actual variable overhead costs and the standard varible overhead costs that re applied to good units produced using the standard varible overhead rate.

Front 23

Variable overhaed efficiency variance

Back 23

The difference between the standard direct labor hours allowed for good units produced and the actual hours worked multiplied by the standard variable overhead rate per hour.

Front 24

Variable overhead spending variance

Back 24

The difference between actual variable overhead costs and the standard varible overhead rate multiplied by the actual hours used. Also called the variable overhead rate variance.

Front 25

Variance

Back 25

The difference between a standard cost and an actual cost

Front 26

Variance analysis

Back 26

The process of computer the differences between standard costs and actual costs and identifying the causes of those differences.