Meanings of variance Word Scramble

Term

Definition

Materials price variance

How much of the variance is because we the price per kg/litre was different to what we had budgeted.

FIXED OVERHEAD EXPENDITURE VARIANCE

Differences due to cost Actual overheads may be different to budgeted overheads.

Labour efficiency variance

How much of the variance is due to us using a different amount of labour per unit to what we had budgeted.

FIXED OVERHEAD VOLUME VARIANCE

Differences in production levels. If our absorption activity rate (units/machine hours/ labour hours) is different to budget, we will have absorbed a different amount of overhead.

Labour rate variance

How much of the variance is because we the paid a different labour rate per hour to what we had budgeted

Fixed overhead capacity variance

We might be able to get more out of our resource. For example, staff may work overtime, or machine may run for longer. Therefore they are able to produce more. Or, they may have been operating for less and therefore unable to produce as much.

Materials usage variance

How much of the variance is due to us using a different amount of material to what we had budgeted.

Fixed overhead efficiency variance

For example, our overheads may have been absorbed on a labour hour basis. But what if our labour is really efficient and making things more quickly? We will absorb less overheads. This variance will measure it

Idle time variance

Compare the total labour hours paid for With The productive labour hours

kg/litre	How much of the variance is because we the price per _____ was different to what we had budgeted.	1	1	true
budgeted	Differences due to cost Actual overheads may be different to _____ overheads.	2	1	true
Labour efficiency variance	Definition: How much of the variance is due to us using a different amount of labour per unit to what we had budgeted.	3	0	true
levels	Differences in production _____. If our absorption activity rate (units/machine hours/ labour hours) is different to budget, we will have absorbed a different amount of overhead.	4	1	true
because	How much of the variance is _____ we the paid a different labour rate per hour to what we had budgeted	5	1	true
resource	We might be able to get more out of our _____. For example, staff may work overtime, or machine may run for longer. Therefore they are able to produce more. Or, they may have been operating for less and therefore unable to produce as much.	6	1	true
Materials usage variance	Definition: How much of the variance is due to us using a different amount of material to what we had budgeted.	7	0	true
overhead	Fixed _____ efficiency variance	8	0	true
With The	Compare the total labour hours paid for _____ productive labour hours	9	1	true