Why is a volume variance comparing budgeted hours with standard hours a better indication of the use

Question:

Why is a volume variance comparing budgeted hours with standard hours a better indication of the use of capacity than a volume variance comparing budgeted hours with actual hours?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cost Accounting Using A Cost Management Approach

ISBN: 9780256174809

6th Edition

Authors: Letricia Gayle Rayburn, Martin K. Gay

See More Books

Question Posted: Jul 01, 2024 02:02 AM

See More Questions

To be solved by DKetan. Using Chapter 7 of your text as a reference, define a standard cost and explain what constitutes the components of a standard cost. Describe the advantages and disadvantages...
I need all three of these 20 question multiple choice question tests answered. Student ID: 22039100 Exam: 061402RR - Budget Analysis and Performance Measurement in Decision Maki When you have...
I need all three of these 20 question multiple choice question tests answered. Student ID: 22039100 Exam: 061402RR - Budget Analysis and Performance Measurement in Decision Maki When you have...
4 pts A lottery winner will receive $0.5 mulhon at the end of each of the next se yearn. What is the future value of her winnings at the time of her final payment, given that the interest rate is 6%...
The lengths (in centimeters) and girths (in centimeters) of 12 harbor seals (a) x = 140 centimeters (b) x = 172 centimeters (c) x = 164 centimeters (d) x = 158 centimeters Find the equation of the...
The accounts of Taylor Electronics Company are listed along with their balances before closing for the month ended March 31, 2012. Requirements 1. Prepare Taylor Electronics multi-step income...
e What browsers do you want to support? Internet Explorer? Mozilla? Firefox? Others?
Carraway Seed Company Inc. has for many years cultivated and sold what are known as heritage plants and seeds. For example, the company has sought out older varieties of tomato plants that are no...
Here is the condensed 2 0 2 1 balance sheet for Skye Computer Company ( in thousands of dollars ) : 2 0 2 1 Current assets $ 1 , 4 0 0 Net fixed assets 2 , 6 0 0 Total assets $ 4 , 0 0 0 Accounts...
What is the danger involved if a company automatically loosens a standard every time an unfavorable variance occurs? How often do you think standards should be reviewed for possible revisions? Why is...
What capacity level is normally chosen as a basis for establishing standard factory overhead rates? In what terms is the capacity level chosen as the basis for standard overhead most often expressed?
A solution is prepared by mixing 631 mL of methanol with 501 mL of water. The molarity of methanol in the resulting solution is 14.29 M. The density of methanol at this temperature is 0.792 g/mL....
A 10 mm thick steel plate with dimensions of 10 x 10 cm and a density of 7.85 g/cm was submerged in seawater for a period of 1 year. During this period the weight of the plate reduced by 20 grams. Kw...
Consider the function f(x1,x2) = x 5x1x2 + 6x at the point x = (0, 2) and search direction p = (1, 1). 1. Write down the first-order Taylor approximation to f(x + ap), where a is the step size. 2....
Nike Company has hired a consultant to propose a way to increase the company\'s revenues. The consultant has evaluated two mutually exclusive projects with the following information provided for...
What are the most effective way to manage routine and catastrophic disasters, and are they different?
The Wall Street Journal reported that of taxpayers with adjusted gross incomes between and itemized deductions on their federal income tax return. The mean amount of deductions for this population of...
Kare Kars provides shuttle service between four hotels near a medical center and an international airport. Kare Kars uses two 10-passenger vans to offer 12 round trips per day. A recent month's...
Find the image of x = k = const under w = 1/z. Use formulas similar to those in Example 1. y| y = 0 -21 -2 -1 -1, /1 12 T -1 -1 y= -2 x =0
Lakeland Inc. manufactured 2,500 units during the month of March. They incurred direct materials cost of $58,000 and overhead costs of $40,000. If their per-unit prime cost was $32.00 per unit, how...
Present Value Computations Using the present value tables, solve the following. ( Click here to access the PV and FV tables to use with this problem. ) Round your answers to two decimal places....
A company provided the following data: Sales $887,000 Variable costs $546,800 Fixed costs $310,000 Expected production and sales in units 36,000 What is the break-even point in sales dollars? Please...

Why is a volume variance comparing budgeted hours with standard hours a better indication of the use

Question:

Step by Step Answer:

Cost Accounting Using A Cost Management Approach

Students also viewed these Business questions