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atomicyoyo atomicyoyo
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A month ago
Suggest one reason for each of the following variances.

a.Unfavorable direct material quantity variance
b.Favorable direct labor rate variance
c.Favorable variable overhead spending variance
d.Unfavorable fixed overhead volume variance
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Managerial Accounting

Managerial Accounting


Edition: 4th
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EM81607EM81607
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A month ago
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More solutions for this book are available here
a.An unfavorable direct material quantity variance might be caused because not enough
material was budgeted for the units of product produced, unskilled workers required the use of too much material, machine breakdowns damaged the material, or apathetic workers wasted material.
b.A favorable direct labor rate variance might occur because the budget used a higher
wage rate than reasonable, lower paid workers than expected were assigned to production, budgeted overtime was not required, or some payroll benefits included in the budgeted rate were cut due to a downturn in the economy.
c.A favorable variable overhead spending variance may be caused because the actual
cost of variable overhead items is less than budgeted. Examples might be indirect labor or indirect material costing is less than expected.
d.The only reason for an unfavorable fixed overhead volume variance is caused relates
to the production level. If fewer units are produced than budgeted, the variance is unfavorable.

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atomicyoyo Author
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A month ago
Thank you, thank you, thank you!
megan.xo
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Yesterday
Smart ... Thanks!
big_larry_samp
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2 hours ago
This helped my grade so much Perfect
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