Main TopicsWho is responsible for variances?
Table of Contents
- Who is responsible for variances?
- Which department is usually held responsible for materials price variances?
- Which department should usually be held responsible for an unfavorable materials price variance group of answer choices production materials handling engineering purchasing?
- Which manager is usually held responsible for labor price variances?
- How can variances be corrected?
- What causes unfavorable variances?
- What is variance analysis explain with the help of an example?
- What are the standard hours allowed to make one unit of finished product?
- Who is responsible for Unfavourable labor efficiency variances caused by poor quality?
- What are some reasons for a material quantity variance?
- Who is usually held responsible for labor price variances?
- Who is responsible for materials price and quantity variances?
- When does unfavorable labor efficiency variance occur?
- What does an unfavorable materials quantity variance mean?
Who is responsible for variances?
The materials price variance is usually the responsibility of the purchasing manager. The materials quantity and labor efficiency variances are usually the responsibility of production managers and supervisors.
Which department is usually held responsible for materials price variances?
purchasing agent In general, the purchasing agent is responsible for the material price variance. 5. When more hours of labor time are necessary to complete a job than the standard allows, the labor rate variance is unfavorable.
Which department should usually be held responsible for an unfavorable materials price variance group of answer choices production materials handling engineering purchasing?
The purchasing department should ordinarily be held responsible for an unfavorable materials price variance because that department ordinarily has most control over the price. 17. Tower Company planned to produce 3,000 units of its single product, Titactium, during November.
Which manager is usually held responsible for labor price variances?
The production manager is usually held responsible for the labor efficiency variance.
How can variances be corrected?
For example, if your budgeted expenses were $200,000 but your actual costs were $250,000, your unfavorable variance would be $50,000 or 25 percent. Often budget variances can be eliminated by analyzing your expenses and allocating an expensed item to another budget line.
What causes unfavorable variances?
An unfavorable variance is the opposite of a favorable variance where actual costs are less than standard costs. Rising costs for direct materials or inefficient operations within the production facility could be the cause of an unfavorable variance in manufacturing.
What is variance analysis explain with the help of an example?
Variance analysis is the quantitative investigation of the difference between actual and planned behavior. ... For example, if you budget for sales to be $10,000 and actual sales are $8,000, variance analysis yields a difference of $2,000.
What are the standard hours allowed to make one unit of finished product?
The labor routing states that each unit should require 1.5 hours of labor to produce. Therefore, the standard hours allowed is 750 hours, which is calculated as 500 units multiplied by 1.5 hours per unit.
Who is responsible for Unfavourable labor efficiency variances caused by poor quality?
The materials price variance is usually the responsibility of the purchasing manager. The materials quantity and labor efficiency variances are usually the responsibility of production managers and supervisors.
What are some reasons for a material quantity variance?
3 common causes of materials quantity variance
- Abnormal spoilage. ...
- Inadequately trained workers. ...
- Inaccurate standard material quantity. ...
- Estimate the standard material quantity. ...
- Determine the actual material quantity. ...
- Subtract standard quantity from actual quantity. ...
- Multiply the difference by the standard cost.
Who is usually held responsible for labor price variances?
Purchasing agent Which manager is usually held responsible for labor price variances? Production supervisor Standards that do not allow for normal down time, waste of materials, or machine breakdowns are known as:
Who is responsible for materials price and quantity variances?
In this situation, who should be held responsible for the materials price and quantity variances? Materials Price Variance: Production Manager Materials Quantity Variance: Purchasing Agent If the labor efficiency variance is unfavorable, then actual hours exceeded standard hours allowed for the actual output
When does unfavorable labor efficiency variance occur?
If the actual labor hours worked exceed the standard labor hours allowed, what type of variance will occur? Unfavorable labor efficiency variance. Which of the following statements is true? An unfavorable materials price variance could have resulted from actions taken by the purchasing agent.
What does an unfavorable materials quantity variance mean?
An unfavorable materials quantity variance indicates that: actual usage of material exceeds the standard material allowed for output. The materials price variance should be computed: when materials are purchased. A favorable materials price variance coupled with an unfavorable material usage variance would MOST likely result from:
