Chapter 10 Flashcards
Quantity standards
specify how much of an input should be used to make a product or provide a service.
Price standards
specify how much should be paid for each unit of the input.
Standard Quantity Per Unit
input you need to make a unit including allowances for normal waste, spoilage, rejects, and other normal inefficiencies.
Standard Price Per Unit
Price Paid for Unit
Direct Labor Rate Per Unit
The amount of money that must be paid to a worker for producing one unit
Direct Hours Per unit
the amount of man hours needed for a unit to be produced
Activity Variance
Flexible budget column-planning budget column
Price Variance
(Actual Price-Standard Price) * Quantity of Input
Quantity Variance
(Inputs actual use - amount inputs should have been used) * actual price of unit
price variance for materials?
Material price variance
price variance for labor?
labor rate variance
price variance for manufactoring overhead
variable overhead rate
Standard Quantity Allowed
actual number of units produced * the standard quantity per unit.
The amount of an input that should have been used to complete the period’s actual output
Standard Hours Allowed
The time that should have been taken to complete the period’s output.
actual number of units produced *the standard hours per unit
Spending Variance
total cost in column (1)- total cost in column (3).
The quantity variance
total cost in column (2) -the total cost in column (3).
Positive numbers in variance are a
U unfavorable
