Unit 8: Variance Analysis
In this unit, we examine a variety of methods utilized by managers to analyze their budgets compared to actual results to assist them in making decisions. When actual sales volume is higher than what was planned in the master budget, variable costs should
also be higher. For example, in one thread we follow how Jerry’s Ice Cream modifies its planned master budget during long, hot summers. In another thread, we watch Tony Bell consider various "problems" that explain variance, and how to use accounting
for variance to improve ongoing management decisions.
Completing this unit should take you approximately 5 hours.
8.1: Flexible Budgets
8.2: Standard Costs
8.3: Direct Materials Variance Analysis
8.4: Direct Labor Variance Analysis
8.5: Variable Manufacturing Overhead Variance Analysis
8.6: Determine Which Cost Variance to Investigate
8.7: Using Variance Analysis
8.8: Fixed Manufacturing Overhead Variance Analysis