Tuesday April 5 - Material variance are added to cost of...

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Tuesday April 5, 2011 Material price variance- look at difference in price times actual quantity Material wage (quantity) variance- look at difference of quantity times standard price Analysis of Variance Step1- decide whether the variance is significant Step2- find out why it occurred
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Unformatted text preview: Material variance are added to cost of goods sold if they are unfavorable. Material variance are subtracted to cost of goods sold if they are favorable. Labor rate variance- (AR – SR) x AH > related to price variance Labor efficiency variance- (AH-SH) x SR...
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