Managerial Accounting 17th Edition, BY Eric W. Noreen, Peter C. Brewer, Ray H Garrison

Managerial Accounting 17th Edition, BY Eric W. Noreen, Peter C. Brewer, Ray H Garrison Ch. 1 - Prob. 1Q Ch. 1 - Define the following: (a) direct materials, (b)... Ch. 1 - Explain the difference between a product cost and... Ch. 1 - Distinguish between (a) a variable cost, (b) a... Ch. 1 - Prob. 5Q Ch. 1 - Define the following terms: (a) cost behavior and... Ch. 1 - What is meant by an activity base when dealing... Ch. 1 - Prob. 8Q Ch. 1 - Distinguish between discretionary fixed costs and... Ch. 1 - Does the concept of the relevant range apply to... Step 1 of 6 Material Price variance Material price variance is the variance that arises because of the difference between actual the actual cost of direct material and the standard cost of quantity purchased or consumed. Formula for calculating Material price variance is as follows: Material quantity variance Material quantity variance is the variance that arises because of the difference in the expected and actual quantity of material used in production. Formula for calculating Material quantity variance is as follows: Step 2 of 6 1. Calculate M cheese activity variance for June as follows: Hence, M cheese activity variance is because actual activity cost is higher than its planned cost. Step 3 of 6 2. Calculate M cheese spending variance for June as follows: Hence, M cheese spending variance is because result of actual cost is lower than result of its flexible budget cost. Step 4 of 6 3. a. Calculate material price variance as follows: Hence, material price variance is . Step 5 of 6 b. Calculate material quantity variance as follows: Hence, material quantity variance is . Step 6 of 6 c. Calculate material spending variance as follows: Hence, material spending variance is