Chapter 7 Flashcards by Thaiba Khaliq

Q

Direct material price variance

A

ACTUAL MATERIAL * COST PER MATERIAL

ACTUAL MATERIAL COST

=

ADVERSE/FAVOURABLE

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Q

Direct material usage variance

A

ACTUAL UNITS * MATERIAL
PER UNIT

-

ACTUAL MATERIAL USED

STANDARD COST OF MATERIAL

=
ADVERSE/FAVOURABLE

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Q

TOTAL DIRECT MATERIAL VARIANCE

A

Actual unit * standard cost * standard material

Actual cost of all

=
Adverse/Favourable

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Q

DIRECT LABOUR RATE VARIANCE

A

ACTUAL HOURS WORKED * STANDARD RATE PER HOUR

-

ACTUAL COST FOR HOUR WORKED

=

ADVERSE/FAVOURABLE

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Q

DIRECT LABOUT EFFICIENCY VARIANCE

A

Actual units * standard hours

Actual hours taken

Standard rate per hour

=

ADVERSE/FAVOURABLE

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Q

Total direct labour variance

A

Units * cost rate * hours taken

Actual

=
ADVERSE/FAVOURABLE

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