Question: 3. What is a variance? What determines whether the variance is favorable or unfavorable? 4. How is each of the following variance calculated? a. Direct

3. What is a variance? What determines whether the variance is favorable or unfavorable?

4. How is each of the following variance calculated? a. Direct Materials Price Variance (DMPV) b. Direct Materials Quantity Variance (DMQV) c. Direct Labor Rate Variance (DMRV) d. Direct Labor Time Variance (DMTV)

5. If the DMPV is $1,000 unfavorable, and the DMQV is $400 favorable, what is the Total Direct Materials Cost Variance?

6. If the DLRV is $400 unfavorable and the DLTV is $500 unfavorable, what is the Total Direct Labor Cost Variance?

7. What is the formula for the Variable Factory Overhead Controllable Variance?

8. What is the formula for the Fixed Overhead Volume Variance? 9. In the journalizing of standard costs and variances, would an unfavorable variance be indicated with a debit or a credit?

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