Question
In: Accounting
Answer must be typed in word or in excel Original Budget Actual Units produced 1,000 units...
Answer must be typed in word or in excel
|
Original Budget |
Actual |
|
|
Units produced |
1,000 units |
970 units |
|
Materials (kg) |
400 kg |
409 kg |
|
Material Costs |
$8,000 |
See other info |
|
Direct Labour (Hours) |
36,000 hours |
34,010 hours |
|
Direct Labour Costs |
$385,000 |
$365,750 |
|
Variable Overhead Costs |
$255,000 |
$245,000 |
|
Fixed Overhead Costs |
$160,000 |
$165,000 |
Other Information
Overhead is Allocated on Direct Labour Hours
During the year, 500 kg of materials were purchased for $9,000
Beginning Inventory: none
Ending Inventory: 91kg
Required:
Calculate the following variances:
- Material Rate
- Material Efficiency
- Labour Price
- Labour Efficiency
- Variable Overhaed Rate
- Variable Overhead Efficiency
- Fixed Overhead Rate
- Fixed Overhead Production Volume
Solutions
Expert Solution
| Variances |
| MPV = ( SP - AP ) * AQ purchased |
| MPV = ( 8000 / 400 ) - ( 9000 / 500 ) * 500 = $ 1000 ( favourable ) |
| MQV = ( SQ - AQ ) SP |
| MQV = ( 400 / 1000 ) * 970 ) - 409 ) * 20 = $ 420 ( unfavourable ) |
| LRV = ( SR - AR ) AH |
| LRV = ( 385000 / 36000 ) - ( 365750 / 34010 ) * 34010 = |
| ( 10.69444 - 10.75419 ) * 34010= $ 2032 ( Unfav. ) |
| LEV = (Sh - AH ) SR |
| LEV = ( 36000 / 1000 ) * 970 ) - 34010 ) * 10.69444 = $ 9732 ( favourable) |
| VOHRV = ( SR - AR ) AH |
| VOHRV = ( 255000 / 36000 ) - ( 245000 / 34010 ) * 34010 = |
| ( 7.08333 - 7.20376 ) * 34010= $ 4096 ( Unfav. ) |
| VOHEV = ( SH - AH ) SR |
| VOHEV = ( 36000 / 1000 ) * 970 ) - 34010 ) * 7.08333 = $ 6446 ( favourable) |
| FOH rate variance = ( SR - AR ) * AH |
| [( 160000 / 36000 ) - ( 165000 / 34010 ) ] * 34010 |
| ( 4.4444 - 4.8515 ) * 34010 = $ 13846 ( unfav. ) |
| FOH Volume Variance = ( Standard units - Budgeted units ) * SR |
| ( 36000 - 34010 ) * 4.4444 = $ 8844 ( unfav. ) |
ekkarill92 answered 2 years agoRelated Solutions
Variances Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 ? Materials used (kg)...
Variances
Original Budget
Actual
Flexible Budget
Units Produced (in units)
10,000
12,000
?
Materials used (kg)
400
700
?
Material cost ($)
8,000
See purchases
?
Direct Labour (hours)
35,000
46,102
?
Direct Labour ($)
385,000
507,080
?
Variable Overhead ($)
350,000
419,161
?
Fixed Overhead ($)
160,000
161,000
?
Other Information
Overhead is Allocated on Direct Labour Hours
During the year, 800 kg of materials were purchased for
$5,000
Beginning Inventory: none
Ending Inventory: 100kg
Required:
Calculate the...
Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 ? Materials used (kg) 400...
Original Budget
Actual
Flexible Budget
Units Produced (in units)
10,000
12,000
?
Materials used (kg)
400
700
?
Material cost ($)
8,000
See purchases
?
Direct Labour (hours)
35,000
46,102
?
Direct Labour ($)
385,000
507,080
?
Variable Overhead ($)
350,000
419,161
?
Fixed Overhead ($)
160,000
161,000
?
Other Information
Overhead is Allocated on Direct Labour Hours
During the year, 800 kg of materials were purchased for
$5,000
Beginning Inventory: none
Ending Inventory: 100kg
Required:
Calculate the flexible...
Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 ? Materials used (kg) 400...
Original Budget
Actual
Flexible Budget
Units Produced (in units)
10,000
12,000
?
Materials used (kg)
400
700
?
Material cost ($)
8,000
See purchases
?
Direct Labour (hours)
35,000
46,102
?
Direct Labour ($)
385,000
507,080
?
Variable Overhead ($)
350,000
419,161
?
Fixed Overhead ($)
160,000
161,000
?
Other Information
Overhead is Allocated on Direct Labour Hours
During the year, 800 kg of materials were purchased for
$5,000
Beginning Inventory: none
Ending Inventory: 100kg
Required:
Calculate the flexible...
Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 Materials used (kg) 400 700...
Original Budget
Actual
Flexible Budget
Units Produced (in units)
10,000
12,000
Materials used (kg)
400
700
Material cost ($)
8,000
See purchases
Direct Labour (hours)
35,000
46,102
Direct Labour ($)
385,000
507,080
Variable Overhead ($)
350,000
419,161
Fixed Overhead ($)
160,000
161,000
Other Information
Overhead is Allocated on Direct Labour Hours
During the year, 800 kg of materials were purchased for
$5,000
Beginning Inventory: none
Ending Inventory: 100kg
Required:
Calculate the flexible budget amounts for all
items.
Calculate the...
Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 Materials used (kg) 400 700...
Original Budget
Actual
Flexible Budget
Units Produced (in units)
10,000
12,000
Materials used (kg)
400
700
Material cost ($)
8,000
See purchases
Direct Labour (hours)
35,000
46,102
Direct Labour ($)
385,000
507,080
Variable Overhead ($)
350,000
419,161
Fixed Overhead ($)
160,000
161,000
Other Information
Overhead is Allocated on Direct Labour Hours
During the year, 800 kg of materials were purchased for
$5,000
Beginning Inventory: none
Ending Inventory: 100kg
Required:
Calculate the flexible budget amounts for all
items.
Calculate the...
Completely work the problems in Excel, conclusions and answers may be typed in Excel or Word....
Completely work the problems in Excel, conclusions and
answers may be typed in Excel or Word. Then submit the assignment
via Canvas to upload the file, so I can grade an electronic version
of the homework.
#1 Problem 25 [page
583-584].
The price drivers pay for gasoline
often varies a great deal across regions throughout the United
States. The following data show the price per gallon for
regular gasoline for a random sample of gasoline service stations
for three major brands of...
how do I copy my word data to excel I typed my report on word document...
how do I copy my word data to excel
I typed my report on word document and would like to
copy them on excel 2013 in other to add table and graph
Read the assignment and answer the questions. You must also upload your Excel file, Word document...
Read the assignment
and answer the questions. You must also upload your Excel file,
Word document or pdf showing your work.
Bodacious Building Co.
is considering four different acquisition methods for obtaining
pickup trucks. If the contractor’s MARR is 6%, which alternative do
you recommend? The alternatives are:
Immediate cash purchase of
the trucks for $22,500 each, and after five years sell each truck
for an estimated $4,900.
Lease the trucks for five
years for $4,000 per year paid at...
The budgeted and actual results for June 2020 are as follows: Budget Actual Production (units) 150,000...
The budgeted and actual results for June 2020 are as
follows:
Budget
Actual
Production (units)
150,000
150,500
Direct material A
300,000m2
£675,000
316,050m2
£695,310
Direct material B
900,000
£18,000
1,053,500
£21,070
Direct labour
37,500 hours
£318,750
37,625 hours
£323,575
Fixed overheads
£287,500
£300,623.75
You are required to:
Calculate all possible variances from the information provided
above for June and use the variances to reconcile the actual cost
of production with the standard cost of production.
Evaluate the variances calculated in...
Presented here are the original overhead budget and the actual costs incurred during April for Piccolo,...
Presented here are the original overhead budget and the actual
costs incurred during April for Piccolo, Inc. Piccolo’s managers
relate overhead to direct labor hours for planning, control, and
product costing purposes. The original budget is based on budgeted
production of 16,400 units in 4,100 standard direct labor hours.
Actual production of 18,000 units required 5,000 actual direct
labor hours.
Original Budget
Actual Costs
Variable overhead
$
24,600
$
27,200
Fixed overhead
30,750
32,100
Required:
a. Calculate the flexed budget...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What 2 things happen to the melting point of a solid when an impurity is present?
- How Can Hominin Evolution be characterized as " mosaic evolution" Use examples of species from the...
- Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of...
- Mobile and wireless devices are being increasingly used in the Business Administration and Management Industry. write...
- What are the options that might be considered in relation to introducing flexible work practices? What...
- Question 2 : Aggregate Scores: Write a program that opens 2 files, quiz.txt, and hw.txt. The...
- Define the term symbiosis specifically as it applies in a biological context. Compare and contrast parasitism,...
ADVERTISEMENT