Match the following formulas or descriptions with the term a-e it defines.
-Actual direct hours - Standard direct hours × Standard rate per hour
A)Direct materials price variance
B)Direct labor rate variance
C)Direct labor time variance
D)Direct materials quantity variance
E)Budgeted variable factory overhead

Question

Quizplus · Accepted Answer

This formula calculates the direct labor time variance, which measures the difference between the actual hours worked and the standard hours allowed for the actual production.

Answer: B
 This formula calculates the direct labor rate variance, which measures the difference between the actual hourly rate paid and the standard hourly rate allowed for the actual production.

Answer: A
 This formula calculates the direct materials price variance, which measures the difference between the actual cost paid for materials and the standard cost allowed for the actual production.

Answer: D
 This formula calculates the direct materials quantity variance, which measures the difference between the actual quantity of materials used and the standard quantity allowed for the actual production.

Answer: E
 Budgeted variable factory overhead is not defined by any of the given formulas or descriptions.

Match the Following Formulas or Descriptions with the Term A-E