Sales and Direct Cost Variance Analysis

Question 1

What is the variance analysis calculation for determining if something the outcome is favorable or unfavorable?

Answer 1

Standard - Actual

Positive = Favorable 
Negative= Unfavorable

Question 2

What is standard quantity allowed (SQA)

Answer 2

SQA is the standard inputs per unit multiple by the actual finished good unit produced.

Question 3

The different in quantities is ALWAYS multiple by the STANDARD PRICE?

Answer 3

TRUE!!!!

Question 4

The difference by rate/price variances is ALWAYS multiplied bytes ACTUAL quantity?

Answer 4

TRUE!!!!

Question 5

What is the sales mix variance?

Answer 5

The sales mix variance quantifies the effect on contribution margin resulting from selling different proportions of product with differing profit margins

Question 6

What is the sales quantity variance?

Answer 6

The sales quantity variance is due to selling a different number of units than expected at the weighted-average unit contribution margin for the sales mix.

Question 7

What is the sales volume variance?

Answer 7

The sales volume variance is the net of the sales mix and quantity variances.