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Managerial Accounting Chapter 10 The materials price variance is calculated using the ●Actual quantity of the input purchased ●Actual price of the input ●Standard price of the input The standard rate per unit that a company expects to pay for variable overhead equals the variable portion of the predetermined overhead rate. The materials price variance is the difference between the actual price of materials and the standard price for materials with the difference multiplied by the actual quantity of materials. Based on the following information, calculate the variable overhead rate variance. Actual variable overhead cost $15,500 actual hours used 4,200 standard hours allowed 4,000 standard variable overhead rate $3.75 per hour. 4200 x $3.75 = $15,750 15,750 - 15,500 = $250 Favorable Calculate the materials quantity variance Standard price$3 per lb Actual price$3.20 per lb Actual quantity 5200 lb Standard quantity 5000 lb Flex budget: 5000 x $3 = $15,000 hybrid : 5200 x $3 = 15,600 15,600 - 15,000 = 600 U *The standard rate per unit that a company expects to pay for variable overhead equals the variable portions ofthe predetermined overhead rateA standard cost card– shows the standard quantity (or hours) and standard price (or rate) of the inputs requiredto produce a unit of a specific productThe standard cost per unit– the standard quantity (or hours) is multiplied by the standard price (or rate) per unitfor all three variable manufacturing costs*Spending variances are computed by taking theamounts in the actual results column and subtractingthe amounts in the flexible budget columns--Either favorable or unfavorable--Price variance– the difference between the actualamount paid for an input and the standard amountthat should be have been paid, multiplied by theactual amount of the input purchasedQuantity variance– the difference between how muchof an input was actually used and how much shouldhave been used for the actual level or output and is stated in dollar terms using the standard price of the inputThe standard quantity allowed /standard hours allowed– the amount of an input that should have been used tomanufacture the actual output of finished goods produced during the period; computed by multiplying the actualoutput by the standard quantity (or hours) per unit. The standard quantity (or hours) allowed is then multiplied
The standard rate per unit that a company expects to pay for variable overhead equals the ______. Multiple choice question. variable portion of the predetermined overhead rate total actual overhead the company expects to incur total predetermined overhead rate variable portion of actual overhead the company expects to incurAnswer :The standard rate per unit equals the variable portion of the predetermined overhead rate. The Standard rate per unit refers to the accepted or budgeted rate per unit for a cost. The Standard rate per unit is different from Actual rate per unit because Standard rate is the estimated rate while Actual rate is the realized rate. Variable overhead are the costs of operation which fluctuates with the level of the business/manufacturing activity. Therefore, Option A is correct because the standard rate per unit which is expected to be paid for the variable overhead equals the predetermined overhead rate. Learn more about this here brainly.com/question/22090305 New questions in BusinessWhen the standard price is higher than the actual price the materials price variance is?Variance is unfavorable because the actual price of $1.20 is higher than the expected (budgeted) price of $1. $(21,000) favorable materials quantity variance = $399,000 – $420,000.
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Learning Objective.. How much should be paid for each unit of an input is specified by a N?Price standards specify how much should be paid for each unit of the input. Defines the amount of direct materials that should be used for each unit of finished product, including an allowance for normal inefficiencies, such as scrap and spoilage.
Is defined as the amount of direct labor hours that should be used to produce one unit of finished goods?Standard Hours per Unit. defines the amount of direct labor hours that should be used to produce one unit of finished goods.
Which of the following is used to calculate the fixed overhead spending variance?Or Simply, Fixed Overhead Spending Variance = AHAR – SHSR. Either way, it is simply the difference in spending from budgeted and actual fixed overhead costs.
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The standard rate per unit that a company expects to pay for variable overhead equals the
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