The following information pertains to the production department of KAMATAYAN Corp.ParticularsActual CostsBudgeted CostsDirect Materials247,000230,000Direct Labor183,500165,000Indirect Salaries*190,000220,000Indirect Materials16,50018,00050,000Allocated Repairs and70,000MaintenanceDepreciationAllocated Utilities Costs30,00026,000763,00025,00025,000Total Cost733,000*Indirect Salaries includes the salary of manager budgeted at P28,000 with actual cost of P35,000.Required:1. Compute for the Actual Non-controllable cost.2. Assume that the top-level management is evaluating the performance of its production manager.Compute for total cost variance where the manager should be evaluated (favorable)/unfavorable?

These are costs not under the control of a manager. Such costs are to be ignored while making…

Answered: 1. Compute for the Actual…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following is a correct equation to calculate the fixed overhead production-volume variance? a. budgeted fixed overhead costs − fixed overhead costs allocated for actual output b. static budget amount − flexible budget amount c. actual costs incurred − fixed overhead costs allocated for actual output d. flexible budget amount − actual costs incurred
If a purchasing manager is able to buy direct materials required in the manufacturing of a product at a lower than ‘standard’ cost why may this result in an overall unfavorable total variance for DM’s.
Which of the following statements is false? Cost allocations such as activity-based costing allow manager to evaluate profitability of their products. A budget is a quantitative plan for acquiring and using financial and other resources over a specific forthcoming time period. A detailed activity-based costing system is costly to implement. Using different allocation base does not affect manufacturing overhead costs allocated to each product.
*Question:** Which method is commonly used in accounting to compare actual costs with standard costs and analyze variances? a) Activity - based costing b) Absorption costing c) Standard costing d) Marginal costing
in preparing variance analysis for both variable overhead and fixed overhead costs, both include spending variances
Is a standard cost an estimated cost? What is the primary objective of employing standard costs in a cost system? > What is a budget? > What is the difference between ideal and practical standards? Which standard generally is used in planning? > What is meant by the term management by exception? > What are some advantages of using standard costs? What are some disadvantages?
based on the attached what is the answer?

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1. Compute for the Actual Non-controllable cost. 2. Assume that the top-level management is evaluating the performance of its production manager. Compute for total cost variance where the manager should be evaluated (favorable)/unfavorable?