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What are the two broad categories of crime? Describe the main differences between these categories and give at least two examples to support your answer.
Material Price Variance
The variance between the real price paid for materials and their anticipated (standard) price.
Material Quantity Variance
The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.
Labor Rate Variance
The difference between the actual cost of labor and the budgeted or standard cost, attributable to paying a higher or lower wage rate than anticipated.
Variable Overhead
Costs of production that fluctuate with the level of output, such as utilities or raw materials.
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