Is it possible that the variances are due to a higher than expected sales volume explain?
Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances are notdue to sales volume differences between budget and actual. Differences in sales volume are captured by the sales volume variance, not the flexible budget variance.
Which manager is usually held responsible for materials price variances?
Who is typically responsible for volume variances?
sales price variance. Normally, the upper-level_______ managers are held responsible for fixed cost volume variances. (Enter only one word.) actual per unit fixed costs are different than budgeted per unit fixed costs.
How are variances calculated?
Variance is calculated by taking the differences between each number in the data set and the mean, then squaring the differences to make them positive, and finally dividing the sum of the squares by the number of values in the data set.
What does an unfavorable overhead volume variance indicate?
An unfavorable volume variance indicates that the amount of fixed manufacturing overhead costs applied (or assigned) to the manufacturer’s output was less than the budgeted or planned amount of fixed manufacturing overhead costs for the same time period.
What does unfavorable variance mean?
Unfavorable variance is an accounting term that describes instances where actual costs are greater than the standard or projected costs. An unfavorable variance can alert management that the company’s profit will be less than expected.
Which of the following would result in an unfavorable production volume variance?
In a standard cost system, an unfavorable production-volume variance would result if: There is an unfavorable labor rate variance. Actual fixed overhead costs are greater than budgeted fixed overhead costs. There is an unfavorable labor efficiency variance.
What is overhead volume variance?
The fixed overhead volume variance is the difference between the amount of fixed overhead actually applied to produced goods based on production volume, and the amount that was budgeted to be applied to produced goods.
How do you calculate overhead volume variance?
It compares the actual overhead costs per unit that were achieved to the expected or budgeted cost per item. The formula for production volume variance is as follows: Production volume variance = (actual units produced – budgeted production units) x budgeted overhead rate per unit.
How do you calculate controllable variance?
Or, stated another way, the controllable variance is actual expenses minus the budgeted amount of expenses for the standard number of units allowed.