Unformatted text preview: spoilage and inefficiency. The materials quantity variance compares the standard quantity of materials that should have been used to the actual quantity of materials used. The labor rate variance is equal to the difference between the standard rate and actual rate, multiplied times the standard hours worked. Variance analysis for overhead is split between variances related to variable overhead and variances related to fixed overhead. Although a balanced scorecard approach may include target thresholds that should be met, the primary mantra is on improvement....
View Full Document
- Spring '11