Question

Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.

Match each of the following formulas and phrases with the term it describes.

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(Actual Direct Labor Hours - Standard Direct Labor Hours) × Standard Rate per Hour (Actual Rate per Hour - Standard Rate per Hour) × Actual Hours (Actual Price - Standard Price) × Actual Quantity (Actual Quantity - Standard Quantity) × Standard Price Standard variable overhead for actual units produced		Direct labor time variance Direct labor rate variance Direct materials price variance Budgeted variable factory overhead Direct materials quantity variance

Answer 1

Solution:

1) Direct Labor Time Variance

2) Direct Labor Rate Variance

3) Direct Materials Price Variance

4) Direct materials quantity variance

5) Budgeted variable factory overhead

Explanation:

1) Direct Labor Time Variance: It is computed as multiplication of standard rate per hour with difference of actual direct labor hours and standard direct labor hours

(Actual Direct Labor Hours - Standard Direct Labor Hours) * Standard Rate per Hour

2) Direct Labor Rate Variance: It is computed as multiplication of actual hours with difference of actual rate per hours and standard rate per hour

(Actual Rate per Hour - Standard Rate per Hour) x Actual Hours

3) Direct Materials Price Variance: It is computed as multiplication of actual quantity with difference of actual price and standard price

(Actual Price - Standard Price) * Actual Quantity

4) Direct materials quantity variance: It is computed as multiplication of standard rate multiplied with difference of actual quantity and standard quantity

(Actual Quantity - Standard Quantity) * Standard Price

5) Budgeted variable factory overhead: It is the standard variable overhead for actual produced units