Question

In: Accounting

1. A variance caused by using more or less than the standard amount of direct materials...

1.

A variance caused by using more or less than the standard amount of direct materials to produce your product.

Labor efficiency variance

labor rate variance

materials usage variance

materials price variance

2.

What details future plans for the acquisition of assets?

Cash budget

sales budget

operating budget

capital budget

3.

A variance caused by using more or less than the standard amount of direct labor hours to produce your product.

materials price variance

materials usage variance

labor rate variance

Labor efficiency variance

Solutions

Expert Solution

1. Material Usage Variance.

Labor efficiency Variance and Labor rate Variance will not come because it is related to Material Variance.

Material Price variance is caused due to the Price changes for direct material.

Material Usage Variance is caused to the Quantity of direct material changes.

2.Capital Budget.

Cash Budget - It shows the details of cash inflows and outflows

Sales Budgets - It Shows the details of sales made during the period.

Operation Budget - It shows the details of total Operating cost incurred.

The above three are not useful for acquisition of fixed asset

Capital Budget is used for making acquisition of assets based on Net Present value,etc.

3.Labor Efficiency Variance.

Direct Price and Usage Variance are related to material and not Labor.

Labor Price Variance is caused to change in Labor rate. Labor Efficiency Variance is caused to the direct Labor hours.

If you have any doubts please comment on the answer.

ekkarill92 answered 1 year ago
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