Other Production Costs Sample Clauses
Other Production Costs. Three major types of expense are included in the Other Production Costs classification.
a) Variances from standard cost the difference between the actual and standard cost of inventory purchased and produced during the period less any portion applicable to on-hand inventory which has been capitalized.
(i) Materials purchase price variance
(ii) Materials usage/yield variances (iii) Direct labor efficiency/inefficiency - reflects the cost difference between the standard and actual number of direct labor hours used for actual production.
Other Production Costs. Three major types of expense are included in the Other Production Costs classification.
a) Variances from standard cost the difference between the actual and standard cost of inventory purchased and produced during the period less any portion applicable to on-hand inventory which has been capitalized.
(i) Materials purchase price variance
(ii) Materials usage/yield variances
(iii) Direct labor efficiency/inefficiency - reflects the cost difference between the standard and actual number of direct labor iii 122 hours used for actual production.
(iv) Overhead - reflects all other labor and overhead cost variances including activity and spending production related and support. With the exception of overhead, all of the other variances can be identified by product and can be added (if unfavorable) or subtracted (if favorable) to determine actual manufacturing costs of a product.