Discussion: Utilizing Variance Cal

 

Discussion: Utilizing Variance Cal

Reply to this discussion post by addressing all of the following topics.  Your answers should be thoughtful, detailed and accurate.  Before posting, review your answer for any grammatical mistakes.  

Topics:

a) What are some possible causes for an unfavorable Direct Materials quantity variance?

b) In its most recent budget performance analysis, ABC Company calculated a favorable direct labor price variance during the same period that an unfavorable direct labor quantity variance was recorded.   Is it possible that the two variances are related?  If so, then how?  

c) Briefly describe how to calculate a variable overhead spending variance.  Then, describe how a variable overhead efficiency variance is determined.  


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