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8 Cards in this Set
- Front
- Back
Variances
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The differences between standard prices and actual prices and between standard quantities and actual quantities.
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Price Variance
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The difference between actual unit price paid for an item and the standard price, multiplied by the quantity purchased.
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Quantity Variance
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The difference between the actual quantity of materials used in production and the standard quantity allowed for the actual output, multiplied by the standard price per unit of materials.
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Price Variance formula
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AQ(AP-SP)
AQ - Actual Quantity AP - Actual Price/Unit of Input SQ - Standard Quantity SP - Standard Price/Unit of Input |
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Quantitiy Variance
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(AQ-SQ)SP
AQ - Actual Quantity AP - Actual Price/Unit of Input SQ - Standard Quantity SP - Standard Price/Unit of Input |
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Terminology for variance for:
Material - ? Labor - ? Manufacturing Overhead - ? |
Price Variance
Rate Variance Spending Variance |
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Terminology for variance for:
Quantity |
Efficiency Variance
or Quantity Variance |
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Formula for total variance
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AQAP-SQSP
AQ - Actual Quantity AP - Actual Price/Unit of Input SQ - Standard Quantity SP - Standard Price/Unit of Input |