Business, 05.05.2020 17:39 daltonduh6218

Determining the reasons for variances is an important part of the overall process of variance analysis. Certain causes are commonly attributed to specific variances. Match each reason with the variance(s) it commonly creates. Each numbered item has one or more correct answer(s). Each lettered item may be used once, more than once, or not at all.
Reason.
1. A change in the quality of materials purchased
2. A new supplier contract
3. Error in the accounting records
4. Change in proportion of spoiled materials
5. Unreasonable standard
6. Unanticipated overtime hours
7. A change in the government-mandated minimum wage
8. Equipment malfunction
9. A change in average worker experience or training
Variances:
A. Direct materials price variance
B. Direct materials quantity variance
C. Direct labor rate variance
D. Direct labor efficiency

Answers: 2

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