Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
8 Cards in this Set
- Front
- Back
|
Variances
|
The differences between standard prices and actual prices and between standard quantities and actual quantities.
|
|
|
Price Variance
|
The difference between actual unit price paid for an item and the standard price, multiplied by the quantity purchased.
|
|
|
Quantity Variance
|
The difference between the actual quantity of materials used in production and the standard quantity allowed for the actual output, multiplied by the standard price per unit of materials.
|
|
|
Price Variance formula
|
AQ(AP-SP)
AQ - Actual Quantity AP - Actual Price/Unit of Input SQ - Standard Quantity SP - Standard Price/Unit of Input |
|
|
Quantitiy Variance
|
(AQ-SQ)SP
AQ - Actual Quantity AP - Actual Price/Unit of Input SQ - Standard Quantity SP - Standard Price/Unit of Input |
|
|
Terminology for variance for:
Material - ? Labor - ? Manufacturing Overhead - ? |
Price Variance
Rate Variance Spending Variance |
|
|
Terminology for variance for:
Quantity |
Efficiency Variance
or Quantity Variance |
|
|
Formula for total variance
|
AQAP-SQSP
AQ - Actual Quantity AP - Actual Price/Unit of Input SQ - Standard Quantity SP - Standard Price/Unit of Input |
