Discussion: Utilizing Variance Cal
Reply to this discussion post by addressing all of the following topics. Your answers should be thoughtful, detailed and accurate. Before posting, review your answer for any grammatical mistakes.
Topics:
a) What are some possible causes for an unfavorable Direct Materials quantity variance?
b) In its most recent budget performance analysis, ABC Company calculated a favorable direct labor price variance during the same period that an unfavorable direct labor quantity variance was recorded. Is it possible that the two variances are related? If so, then how?
c) Briefly describe how to calculate a variable overhead spending variance. Then, describe how a variable overhead efficiency variance is determined.
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Discussion Utilizing Variance CalReply to this discussion p.docx
1. Discussion: Utilizing Variance Cal
Reply to this discussion post by addressing all of the following
topics. Your answers should be thoughtful, detailed and
accurate. Before posting, review your answer for any
grammatical mistakes.
Topics:
a) What are some possible causes for an unfavorable Direct
Materials quantity variance?
b) In its most recent budget performance analysis, ABC
Company calculated a favorable direct labor price variance
during the same period that an unfavorable direct labor quantity
variance was recorded. Is it possible that the two variances are
related? If so, then how?
c) Briefly describe how to calculate a variable overhead
spending variance. Then, describe how a variable overhead
efficiency variance is determined.
