Card Set Information
if actual profit is less than budgeted, does it mean favorable (F) or unfavorable (U) total profit variance?
if actual sales price is less than budgeted, does it mean favorable or unfavorable sales price variance?
if actual sales quantity is less than budgeted, does it mean favorable or unfavorable sales volume variance?
if input price is less than budgeted, does it mean favorable or unfavorable input price variance?
if input quantity per unit of product is less than budgeted, does it mean favorable or unfavorable input quantity (efficiency) variance?
sales price variance
(actual selling price-anticipated price)*units sold
total profit variance
actual profit-master budget profit
sales volume variance
(actual sales quantity-budgeted sales quantity)*budgeted unit cm
variable cost variance
(budgeted unit vc-actual 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 p-actual input p)
Cost in "as if" budget-actual cost
Input quantity variance
cash in flexible budget-cost in "as if" budget
profit margin(for a given product line)
cm-allocated capacity costs
cost in cost pool
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
cost driver for production setups cost pool
# of setups
cost driver for customer orders cost pool