Cost and Material Quantity Variance

Related BrainMass Solutions

• Calculating Material and Labor Variances

  Direct Material Variances: Direct material variance represents the differece between standarad cost of material for actual out put and actual cost of material for actual output It is classified as : (1) Material price Variance (2) Material

• How can I make a difference between a favorable and unfavorable variance?

  Price variance and quantity variance is calculated separately for all three variable cost elements like material, labor and variable overhead.

• Price and Quantity Variances for Material and Labor

  Material Quantity Variance on the other hand represents the difference between standard cost of actual usage and standard usage of material. 3) The favorable material quantity variance may have caused due to economical usage of material.. 4) The

• Total Materials Variance and Materials Price Variance

  Direct Material Variances: 1 Direct Material cost (Total) variance = (Actual Quantity x Actual price) - (Standard quantity X Standard price) OR Direct material cost variance = (AQ x AP) - (SQ x SP) (2350 units x $4.89) - (2200 units x

• variance analysis.

  Per unit Y 100/(600-440) 0.625 Per unit Z 84F /(384-660) $0.30 Excel file contains calculations and formulas of direct material quantity variance ,the actual quantity of direct labor hours the actual labor cost incurred

• Finding Price Variance, Quantity Variance, and Cost Variance

  Material price variance = 43700*[$7.60-$7.50] = $4370 Material quantity variance = $7.50*[43700-42500] = $9000 Cost variance = 43700*7.6- 5*8500*7.5 = $13370 The solution gives detailed steps on computing price variance, cost variance and quantity

• Managerial Accounting Standard Costs

  The materials quantity variance for August is: Direct Material Efficiency/Quantity Variance = Budgeted Input Price X (Actual Input Quantity - Budgeted Input Quantity) Budgeted Direct Material Price = $6.00/kilo Actual Input Quantity = 10,860 kilos

• Cost analysis variances for the Bakery

  spend on labor - budgeted amount Material Usage Variance (200.00) Favorable as less material used to produce the same quantity Total Material Variance (90.00) Favorable as total cost incurred on material is less

• Material & Labor Variances with Formula

  Formulas Material Price Variance = (Actual Price - Standard Price) * Actual Quantity Material Quantity Variance = (Actual Quantity - Standard Quantity) * Standard Price Total Material Variance = Material Price Variance + Material Quantity Variance

• Material Variances

  The solution computes Materials price variance and Materials quantity variance.