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Meanings of variance

Category: Term

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Created by: KayeDavis

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Term	Definition
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.
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.
Idle time variance	Compare the total labour hours paid for With The productive labour hours
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 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
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 EXPENDITURE VARIANCE	Differences due to cost Actual overheads may be different to budgeted overheads.
Materials usage variance	How much of the variance is due to us using a different amount of material to what we had budgeted.
Materials price variance	How much of the variance is because we the price per kg/litre was different to what we had budgeted.

overhead	Fixed _____ capacity variance	1	0	true
absorption	Differences in production levels. If our _____ activity rate (units/machine hours/ labour hours) is different to budget, we will have absorbed a different amount of overhead.	2	1	true
Idle time variance	Definition: Compare the total labour hours paid for With The productive labour hours	3	0	false
labour	For example, our overheads may have been absorbed on a _____ 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	5	1	true
budgeted	How much of the variance is due to us using a different amount of labour per unit to what we had _____.	6	1	true
cost Actual	Differences due to _____ overheads may be different to budgeted overheads.	7	1	true
different	How much of the variance is due to us using a _____ amount of material to what we had budgeted.	8	1	true