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Accounting for Management
Explanations, Exercises, Problems and Calculators
Standard costing and variance analysis
Explain the terms ‘standard’ and ‘standard costing’.
Differentiate between standard and budget.
Compute and interpret direct materials, direct labor and variable manufacturing overhead variances.
Explain the purpose of preparing a variance performance report.
Number of pages:
Approximate time required:
3 – 3.5 hours
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Explanation of standards and standard costing
Difference between standards and budgets
Direct materials price and quantity standards
Direct labor rate and quantity standards
Direct materials price variance
Direct materials quantity variance
Direct labor rate variance
Direct labor efficiency variance
Variable manufacturing overhead standards and Variances
Variance performance report