Standard Costing

Question 1

DM price variance

Answer 1

(standard - actual price) x actual qty purchased

Question 2

DM Quantity variance

Answer 2

(standard qty allowed - actual qty) x standard price

Question 3

DM Purchase price variance

Answer 3

(standard - actual price) x purchased qty

Question 4

DL rate variance

Answer 4

(standard - actual DL rate) x actual DLH

Question 5

DL Efficiency variance

Answer 5

(standard allowed hours - actual DLH) x standard DL rate

Question 6

VOH spending variance

Answer 6

(standard - actual VOH rate) x actual DLH

Question 7

VOH efficiency variance

Answer 7

(standard hours allowed - actual DLH) x standard VOH rate

Question 8

FFOH budget variance

Answer 8

budgeted - actual FFOH

Question 9

FFOH volume variance

Answer 9

(standard hours allowed - budgeted DLH) x standard FFOH rate

Question 10

FFOH volume efficiency variance

Answer 10

(standard hours allowed - actual DLH) x standard FFOH rate

Question 11

FFOH volume capacity variance

Answer 11

(actual - budgeted DLH) x standard FFOH rate

Question 12

Sales price variance

Answer 12

(actual - budgeted selling price) x actual units sold

Question 13

Sales volume variance

Answer 13

(actual - static budget sales units) x budgeted CMU

Question 14

Sales volume variance

Answer 14

(actual - static budget sales units) x budgeted CMU