The total manufacturing cost variance is
A) the difference between actual costs and standard costs for units produced
B) the flexible budget variance plus the time variance
C) the difference between planned costs and standard costs for units produced
D) None of these choices

Question

Quizplus · Accepted Answer

The total manufacturing cost variance is defined as the difference between the actual costs and standard costs for units produced. This variance measures the overall efficiency of the manufacturing process in terms of costs. Option B is incorrect because the flexible budget variance and time variance are separate variances and should not be added together. Option C is incorrect because planned costs are not typically used in variance analysis, and standard costs are the benchmark against which actual costs are compared. Option D is incorrect because one of the options is correct.

The Total Manufacturing Cost Variance Is