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10 Cards in this Set
- Front
- Back
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The variance that arises whenever the standard hours allowed for the output of a period are different from the denominator activity level that was used to compute the predetermined overhead rate |
VOLUME VARIANCE |
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Name of the variance that can occur for direct labor or variable overhead and is the indicator of the time actually spent and the time allowed given the actual output achieved |
EFFICIENCY VARIANCE |
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A budget created at the beginning of the budgeting period that is valid only for the planned level of activity |
PLANNING OR STATIC BUDGET |
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A detailed listing of the standard amounts of inputs that should go into a unit of product, multiplied by the standard price or rate that has been set for each input |
STANDARD COST CARD |
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Difference between budgeted fixed overhead and actual fixed overhead |
BUDGET VARIANCE |
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The activity figure used to compute the predetermined overhead rate |
DENOMINATOR ACTIVITY |
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Use of this type of budget for performance evaluations is not advised due to the fact that it may never be achieved and negatively affect moral among the workers |
IDEAL BUDGET |
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Standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times |
IDEAL STANDARDS |
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A budget that is designed to cover a range of activity and that can be used to develop budgeted costs at any point within the range to compare to actual costs incurred |
FLEXIBLE BUDGET |
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The amount of materials that should have been used to compute the period’s actual output, it is computed by multiplying the actual number of units produced by the standards quantity per unit. |
STANDARD QUALITY ALLOWED |
