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Match each variance to its formula

Exercise and reference answers

Matching pairs
  1. Left
    Materials quantity
    Right
    (actual qty less standard qty) x std price
  2. Left
    Materials price
    Right
    (actual price less std price) x actual qty
  3. Left
    Labour time
    Right
    (actual hours less std hours) x std rate
  4. Left
    Labour rate
    Right
    (actual rate less std rate) x actual hours
  5. Left
    Overhead control
    Right
    actual variable cost less budgeted variable
  6. Left
    Overhead volume
    Right
    (normal hrs less standard hrs) x fixed rate
Instructions
Tap a variance, then tap the calculation that produces it.

Explanation

_Source: Jonick, Principles of Managerial Accounting, section 8.2 Direct Materials Cost Variance_
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