B4 - Operations Management Flashcards
1
Q
Direct material price variance
A
did we spend more or less than we budgeted
2
Q
Direct material usage variance
A
did we use more or less materials than we should have
3
Q
DM price variance formula
A
Actual quantity purchased X (actual price - standard price)
4
Q
DM usage variance formula
A
Standard price X (actual quantity - standard quantity)
5
Q
Direct labor rate variance
A
did we spend more or less on DL this period than we budgeted?
6
Q
Direct labor efficiency variance
A
did labor work more hours or less hours than we budgeted
7
Q
DL rate variance
A
actual hours worked x (actual rate - standard rate)
8
Q
DL efficiency variance
A
standard rate x (actual hours worked - standard hours)
9
Q
A
