Explain the difference between a favorable and an unfavorable variance.
Answer to relevant QuestionsHow do flexible budgets differ from static budgets? Explain the difference between a cost standard and an efficiency standard. Give an example of each. List the eight product variances and the manager most likely responsible for each. Johnson, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 0.8 pound per glass at a cost of $ 0.30 per pound. The actual result for one month’s production of 6,900 glasses was 1.1 ...Office Plus sells its main product, ergonomic mouse pads, for $ 12 each. Its variable cost is $ 5.20 per pad. Fixed costs are $ 205,000 per month for volumes up to 65,000 pads. Above 65,000 pads, monthly fixed costs are $ ...
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