The flashcards below were created by user
tmoy4565
on FreezingBlue Flashcards.

if actual profit is less than budgeted, does it mean favorable (F) or unfavorable (U) total profit variance?
unfavorable

if actual sales price is less than budgeted, does it mean favorable or unfavorable sales price variance?
unfavorable

if actual sales quantity is less than budgeted, does it mean favorable or unfavorable sales volume variance?
unfavorable

if input price is less than budgeted, does it mean favorable or unfavorable input price variance?
favorable

if input quantity per unit of product is less than budgeted, does it mean favorable or unfavorable input quantity (efficiency) variance?
favorable

sales price variance
(actual selling priceanticipated price)*units sold

total profit variance
actual profitmaster budget profit

sales volume variance
(actual sales quantitybudgeted sales quantity)*budgeted unit cm

variable cost variance
(budgeted unit vcactual unit vc)*actual sales q

what are the two components of variable cost variance?
 1.input price variance
 2.input quantity variance

Input price variance
 actual input quantity*(budgeted input pactual input p)
 or
 Cost in "as if" budgetactual cost

Input quantity variance
cash in flexible budgetcost in "as if" budget

profit margin(for a given product line)
cmallocated capacity costs

allocation rate
 cost in cost pool
 denominator volume

denominator volume
total number of cost driver units for all product lines combined

cost allocated in each product line
#of cost driver units for product line*allocation rate

cost driver for labor related cost pool
direct labor dollars

cost driver for machine related cost pool
machine hours

cost driver for production setups cost pool
# of setups

cost driver for customer orders cost pool
orders

