Chapter 10/11 Direct material/labour variances and overhead variances

Question 1

Direct material price variance formula

Answer 1

Purchased QTY X (Actual price - Standard price)

Question 2

Direct material price variance formula

Answer 2

PQ x (AP - SP)

Question 3

Direct material Quantity variance formula

Answer 3

Standard price x (Actual Qty - standard Qty)

Question 4

Direct material Quantity variance formula

Answer 4

SP x (AQ - SQ)

Question 5

Direct Labour (DL) Rate Variance

Answer 5

Actual hours x (actual rate - standard rate)

Question 6

Direct Labour (DL) Rate Variance

Answer 6

AH x (AR - SR

Question 7

Direct Labour (DL) Efficiency variance

Answer 7

standard rate x (Actual hours - Standard hours)

Question 8

Direct Labour (DL) Efficiency variance

Answer 8

SR x (AH - SH)

Question 9

CHAPTER 11

Answer 9

CHAPTER 11

Question 10

Variable overhead spending variance

Answer 10

actual variable overhead - (AH x SVR)

Question 11

Variable overhead efficiency variance

Answer 11

SVR x (AH - SH)

Question 12

Fixed overhead budget variance

Answer 12

Actual fixed overhead - Budget fixed overhead

Question 13

Fixed overhead volume variance

Answer 13

Budgeted fixed overhead - Applied fixed overhead

Question 14

APPLIED FIXED OVERHEAD

Answer 14

actual units produced x fixed hours x fixed price