The total manufacturing cost variance is
A) the difference between actual costs and standard costs for units produced.
B) the flexible budget variance plus the time variance
C) the difference between planned costs and standard costs for units produced
D) none of the above.

Question

Quizplus · Accepted Answer

The total manufacturing cost variance is calculated as the difference between actual costs and standard costs for the units produced. It includes all the variances related to the direct materials, direct labor, and manufacturing overhead. Choice B is incorrect as it describes a different type of variance calculation. Choice C is incorrect as it describes the planning stage of variance calculation. Therefore, option A is the correct answer.

The Total Manufacturing Cost Variance Is