Direct Material Total Variance

	Direct Material Total Variance In variance analysis (accounting) direct material total variance is the difference between the actual cost of actual number of units produced and its budgeted cost in terms of material. Direct material total variance can be divided into two components: the direct material price variance, the direct material usage variance. Example Let us assume that standard direct material cost of widget is as follows: :2 kg of unobtainium at $ 60 per kg ( = $ 120 per unit). Let us assume further that during the given period, 100 widgets were manufactured, using 212 kg of unobtainium which cost $ 13,144. Under those assumptions direct material total variance can be calculated as: Direct material total variance can be reconciled to direct material price variance and direct material usage variance by: See direct material usage variance#Example and direct material price variance#Example for computations of both components. See also * Variance analysis (accounting) Direct material ... [...More Info...] [...Related Items...] OR:* [Wikipedia] [Google] [Baidu]
	Variance Analysis (accounting) In budgeting, and management accounting in general, a variance is the difference between a budgeted, planned, or standard cost and the actual amount incurred/sold. Variances can be computed for both costs and revenues. The concept of variance is intrinsically connected with planned and actual results and effects of the difference between those two on the performance of the entity or company. Types of variances Variances can be divided according to their effect or nature of the underlying amounts. When effect of variance is concerned, there are two types of variances: * When actual results are better than expected results given variance is described as favorable variance. In common use favorable variance is denoted by the letter F—usually in parentheses (F). * When actual results are worse than expected results given variance is described as adverse variance, or unfavourable variance. In common use adverse variance is denoted by the letter U or the letter A—usually in parent ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Actual Cost {{Short pages monitor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Direct Material Price Variance In variance analysis (accounting) direct material price variance is the difference between the standard cost and the actual cost for the actual quantity of material purchased. It is one of the two components (the other is direct material usage variance) of direct material total variance. Example Let us assume that the standard direct material cost of widget is as follows: :2 kg of unobtainium at € 60 per kg ( = € 120 per unit). Let us assume further that during the given period, 100 widgets were manufactured, using 212 kg of unobtainium which cost € 13,144. Under those assumptions direct material price variance can be calculated as: Direct material price variance can be reconciled to direct material total variance by way of direct material usage variance In variance analysis, direct material usage (efficiency, quantity) variance is the difference between the standard quantity of materials that should have been used for the number of units actually produced, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Direct Material Usage Variance In variance analysis, direct material usage (efficiency, quantity) variance is the difference between the standard quantity of materials that should have been used for the number of units actually produced, and the actual quantity of materials used, valued at the standard cost per unit of material. It is one of the two components (the other is direct material price variance) of direct material total variance. Example Let us assume that standard direct material cost of widget is as follows: :2 kg of unobtainium at € 60 per kg ( = € 120 per unit). Let us assume further that during given period, 100 widgets were manufactured, using 212 kg of unobtainium which cost €13,144. Under those assumptions direct material usage variance can be calculated as: Direct material usage variance can be reconciled to direct material total variance by way of direct material price variance: See direct material total variance#Example and direct material price variance#Example for ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Widget (economics) The word ''widget'' is a placeholder name for an object or, more specifically, a mechanical or other manufactured device. It is an ''abstract unit of production''. The ''Oxford English Dictionary'' defines it as "An indefinite name for a gadget or mechanical contrivance, esp. a small manufactured item" and dates this use back to 1931. It states that the origin is "perhaps U.S." and for etymology suggests that it may be a variant of ''gadget''. The term also appears earlier in George S. Kaufman and Moss Hart's 1924 play '' Beggar on Horseback''. General Motors Corporation sponsored a short film in 1939, "Round and Round", which features widgets throughout. Usage When discussing a hypothetical situation, the term is used to represent any type of personal property, with the corresponding term Blackacre used to represent any type of real property. In such use, the widget or Blackacre has whatever characteristics are relevant to the scenario. So, if the object being discussed nee ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Unobtainium Unobtainium (or unobtanium) is a term used in fiction, engineering, and common situations for a material ideal for a particular application but impractically difficult or impossible to obtain. Unobtainium originally referred to materials that do not exist at all, but can also be used to describe real materials that are unavailable due to extreme rarity or cost. Less commonly, it can mean a device with desirable engineering properties for an application that are exceedingly difficult or impossible to achieve. The properties of any particular example of unobtainium depend on the intended use. For example, a pulley made of unobtainium might be massless and frictionless. But for a nuclear propulsion, nuclear rocket, unobtainium might have the needed qualities of lightness, strength at high temperatures, and resistance to radiation damage; a combination of all three qualities is impossible with today's materials. The concept of unobtainium is often applied hand-wavingly, flippantly, or ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Variance Analysis (accounting) In budgeting, and management accounting in general, a variance is the difference between a budgeted, planned, or standard cost and the actual amount incurred/sold. Variances can be computed for both costs and revenues. The concept of variance is intrinsically connected with planned and actual results and effects of the difference between those two on the performance of the entity or company. Types of variances Variances can be divided according to their effect or nature of the underlying amounts. When effect of variance is concerned, there are two types of variances: * When actual results are better than expected results given variance is described as favorable variance. In common use favorable variance is denoted by the letter F—usually in parentheses (F). * When actual results are worse than expected results given variance is described as adverse variance, or unfavourable variance. In common use adverse variance is denoted by the letter U or the letter A—usually in parent ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Direct Material Price Variance In variance analysis (accounting) direct material price variance is the difference between the standard cost and the actual cost for the actual quantity of material purchased. It is one of the two components (the other is direct material usage variance) of direct material total variance. Example Let us assume that the standard direct material cost of widget is as follows: :2 kg of unobtainium at € 60 per kg ( = € 120 per unit). Let us assume further that during the given period, 100 widgets were manufactured, using 212 kg of unobtainium which cost € 13,144. Under those assumptions direct material price variance can be calculated as: Direct material price variance can be reconciled to direct material total variance by way of direct material usage variance In variance analysis, direct material usage (efficiency, quantity) variance is the difference between the standard quantity of materials that should have been used for the number of units actually produced, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]
	Direct Material Usage Variance In variance analysis, direct material usage (efficiency, quantity) variance is the difference between the standard quantity of materials that should have been used for the number of units actually produced, and the actual quantity of materials used, valued at the standard cost per unit of material. It is one of the two components (the other is direct material price variance) of direct material total variance. Example Let us assume that standard direct material cost of widget is as follows: :2 kg of unobtainium at € 60 per kg ( = € 120 per unit). Let us assume further that during given period, 100 widgets were manufactured, using 212 kg of unobtainium which cost €13,144. Under those assumptions direct material usage variance can be calculated as: Direct material usage variance can be reconciled to direct material total variance by way of direct material price variance: See direct material total variance#Example and direct material price variance#Example for ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu]