FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Are favorable variances always good and unfavorable variances always bad? How should variances be interpreted? What about the situation in which the materials price variance

Are favorable variances always good and unfavorable variances always bad? How should variances be interpreted?
What about the situation in which the materials price variance is favorable and the materials quantity variance is unfavorable? How would you explain that situation?

Step by Step Solution

★★★★★

3.45 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

Favorable variances are always not good and unfavorable variances are always not bad First we need to understand the meaning of variance the variance occurs when an actual outcome deviates from an exp... blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems
Accounting Information Systems

Authors: George H. Bodnar, William S. Hopwood

11th Edition

0132871939, 978-0132871938

More Books

Students explore these related Accounting questions

Question

Explain why the direct materials price variance is often computed at the point of purchase rather than at the point of issuance.

Answered: 3 weeks ago

Question

How do you deal with the situation in which a manager claims not to understand departmental information needs?

Answered: 3 weeks ago

Question

1. In a standard cost system, materials price variance is obtained by multiplying the A) Actual quantity purchased by the difference between actual price and standard price. B) Standard price by the...

Answered: 3 weeks ago

Question

Question 2: The following term structure of spot rates is prevailing in the economy: Horizon (years) 1 2 3 Yield (%) 3 4 5 This means you can trade zero coupon bonds with face values of $1000 at...

Answered: 3 weeks ago

Question

Hunter Sobitson, a waiter at the Twentieth Hole restaurant, worked 43 hours this week and collected over $650 in tips. The restaurant uses the full tip credit against the minimum wage and pays...

Answered: 3 weeks ago

Question

Explain the usefulness of decision trees in decision making.

Answered: 3 weeks ago

Question

Verify the formula given for the Pi of the M/M/k.

Answered: 3 weeks ago

Question

Many of a banks customers use its automatic teller machine to transact business after normal banking hours. During the early evening hours in the summer months, customers arrive at a certain location...

Answered: 3 weeks ago

Question

During March, a firm expects its total sales to be $161,000, its total variable costs to be $95,100, and its total fixed costs to be $25,100. The contribution margin for March is: Multiple Choice...

Answered: 3 weeks ago

Question

The MN plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each product uses raw materials with costs as shown. The plant...

Answered: 3 weeks ago

Question

Suppose m = $300, The price of food is Pf = $3 and the price of "other goods" is Pg = $1. (a) What is the budget constraint? Draw the budget line on a graph and identify points on each axis. Put food...

Answered: 3 weeks ago

Question

how to automate a retraction system of any kind and is there a need for cables or magnetic relay for each systems? please indicate your references.

Answered: 3 weeks ago

Question

As the distribution center manager would you staff your facility at the minimum, average or maximum amount of equivalent staff which is derived by dividing the total throughput by the productivity...

Answered: 3 weeks ago

Question

Question 11 pts Decide if any information in the following sentence is potentially libelous. Select L if it is potentially libelous and S is if the statement is safe to publish. A member of the...

Answered: 3 weeks ago

Question

Compare functions/responsibilities of Chief Information Officer (CIOs) for the routine business organizations and healthcare organizations. Determine which responsibilities of the CIO are different...

Answered: 3 weeks ago

Question

QUESTION 4 Rambo Company has three products, A, B, and C. The following information is available: Product A $68,000 39,000 29,000 Product B $95,000 49,000 46,000 Productc $22,000 15,000 7000 Sales...

Answered: 3 weeks ago

Question

5. Notice that the formula for the period of a pendulum does not include amplitude. This is because the formula is only an approximation of the true motion of a pendulum. The pendulum is modeled as a...

Answered: 3 weeks ago

Question

SBS Company have received a contract to supply its product to a Health Care Service Hospital. The sales involve supplying 1,250 units every quarter, the sales price is RM 85 per unit. The Client...

Answered: 3 weeks ago

Question

Consider a small manufacturing company that has taken on the project of designing databases for sales orders, inventory, and accounts receivable. List several data fields that these three databases...

Answered: 3 weeks ago

Question

The Wilting Tree Company (WTC) sells shrubs and trees to the general public in the entire West Texas area. WTC has nurseries in many cities and a corporate office in Houston with over 100 clerical...

Answered: 3 weeks ago

Question

You work for the chief information officer in a large company. Your company develops most of its software in- house. Your boss is trying to decide whether you should use UML or BPMN, or both, to...

Answered: 3 weeks ago

Question

For each lettered part, a through c, examine the two given sets of numbers. Without doing any calculations, decide which set has the larger standard deviation and explain why. Then check by finding...

Answered: 3 weeks ago

Question

How many points do football teams score in the Super Bowl? Here are the total numbers of points scored by both teams in each of the first 48 Super Bowl games: 45, 47, 23, 30, 29, 27, 21, 31, 22, 38,...

Answered: 3 weeks ago

Question

A clerk entering salary data into a company spreadsheet accidentally put an extra "0" in the boss's salary, listing it as $2,000,000 instead of $200,000. Explain how this error will affect these...

Answered: 3 weeks ago

Previous Question Next Question