Subscript "A" = Actual;subscript "S" = Standard;Q = Quantity of Direct

question 91

Essay

Subscript "a" = actual;subscript "s" = standard;Q = quantity of direct materials issued to production;P = price paid for unit of direct materials.
Required: Use the above notation to develop a formula for each of the following standard cost variances: (A)Direct materials price variance (calculated at point of production,not point of purchase).
(B)Direct materials usage variance.
(C)Flexible-budget (FB)variance for direct materials.
(D)Joint price-quantity variance for direct materials.

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Definitions:

Safeguarded

refers to measures or actions taken to protect something from harm, loss, or unauthorized access.

Bank Service Charge

Fees charged by banks for account services provided, including monthly maintenance, transactions exceeding a certain limit, or ATM usage outside the network.

NSF Cheque

A cheque that cannot be processed because the account it is drawn on does not have sufficient funds, standing for "Non-Sufficient Funds."

Outstanding Cheques

Checks that have been written and recorded in the issuing company's ledger but have not yet been cashed or cleared by the bank.