Price Variance

10. What might cause the following materials variances? a. An unfavorable materials price variance.

b. A favorable materials price variance.

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c. An unfavorable materials quantity variance.

d. A favorable materials quantity variance.

11. What might cause the following labor variances?

a. An unfavorable materials price variance.

b. A favorable materials price variance.

c. An unfavorable materials quantity

d. A favorable materials quantity variance

12. What might cause the following labor variances?

a. An unfavorable labor rate variance.

b. A favorable labor rate variance.

c. An unfavorable labor efficiency variance.

d. A favorable labor efficiency variance

 

13. Is it possible that a variance of one type might be partially or fully offset by another variance? Explain.

14. If, in a given period, the total actual cost of all materials used is exactly the same as the standard cost so that no net variance results, should the data be further analyzed? Explain.