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For each of the variances listed, give a possible reason for its existence. The standard cost variance accounts of Sun City Company at the end
For each of the variances listed, give a possible reason for its existence.
The standard cost variance accounts of Sun City Company at the end of its fiscal year had the following balances:
Materials price variance (unfavorable) $18,000 |
| $18,000 |
Materials usage variance (unfavorable) 14,400 |
| 14,400 |
Labor rate variance (favorable) 10,800 |
| 10,800 |
Labor efficiency variance (unfavorable) 39,600 |
| 39,600 |
Overhead budget variance (favorable) 2,000 |
| 2,000 |
Overhead volume variance (unfavorable) 21,600 |
| 21,600 |
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