Question

Need help with these questions.

1. Who is responsible for material cost variances

2. who is responsible for material usage variances

3. What are the variable overhead variances used for?

4. What advantage if any does a standard cost system have over a traditional system

Answer 1

Answer:

1)

The Purchasing manager is responsible on the grounds that he arranges materials and arranges costs from providers or suppliers. He is now and then ready to change providers yet frequently competitors have comparable pricing. In the event that a material value fluctuation exists, the buying supervisor is counseled to attempt to decide the cause of the variance.

2)

Since the Production supervisor administers the production laborers, he is responsible for checking the utilization of materials. On the off chance that a material amount fluctuation exists, the Production supervisor is counseled to decide the cause. Be that as it may, if the purchasing manager bought low quality materials so as to get a cheaper value, the  purchasing manager is responsible. Cheap materials regularly extend to make unfavorable labor efficiency variances on the grounds that the defective materials moderate the production laborers.

3)

The two variances used to investigate this distinction are the spending fluctuation and proficiency variance .The variable overhead spending fluctuation is the contrast between actual costs for variable overhead and budgeted costs dependent on the standards.For an organization that distributes variable manufacturing overhead to items dependent on direct work hours,the variable overhead efficiency variance is the distinction between the number of direct work hour's really worked and what ought to have been worked dependent on the measures.

4)

It is very simple to print a report demonstrating the period - end stock adjusts (in the event that you are utilizing an interminable stock system).Mutually it by the standard expense of every thing, and instantly generate on ending inventory valuation.The result doesn't actually coordinate the actual cost of stock ,yet it is close . However,it might be important to update standard expenses as often as possible ,if actual expenses or costs are persistently transforming it is simplest to update the costs for the highest - dollar parts of stock consistently, and leave lower esteem things for periodic cost audits.