B4-M7 Variance Analysis Flashcards
1
Q
what is DL usage (efficiency) variance formula?
A
Difference in DL standards and actual hours x standard rate
2
Q
what is DM price variance?
A
Difference between actual price and standard price x actual quantity
3
Q
what is efficiency variance of variable OH?
A
It compares the amount of variable OH applied (standard) with the actual amount of variable OH
4
Q
what is the formula for the production volume variance component for OH?
A
applied OH - budgeted OH based on standard hours. The sole difference is the application of fixed OH
5
Q
A
