2 PR 23-2B Flexible budgeting and variance analysis Women's Coats Men's Coats Actual production 4,400 5,800 Actual Price per Unit Actual Quantity Purchased and Used Obj. 1, 2, 3 $1.90 per Ib. Filler 48,000 Liner 8.20 per yd. 85,100 I'm Really Cold Coat Company makes women's and men's coats. Both products Actual Labor Rate Actual Labor Hours Used $14.10 per hr. 13.30 per hr. Women's coats 1,825 require filler and lining material. The following planning information has been made Excel Men's coats 2,800 available: Standard Amount per Unit Women's Coats 4.0 lb. 7.0 yds. Men's Coats Standard Price per Unit The expected beginning inventory and desired ending inventory were realized. 5.2 lb. 9.4 yds. 0.50 hr. $2.00 per Ib. 8.00 per yd. Filler 5.2 Ib. Instructions Liner Standard labor time 0.40 hr Women's Coats 5,000 units $14.00 per hr. 1. Prepare the following variance analyses for both coats and the total, based on the actual results and production levels at the end of the budget year: Men's Coats Planned production 6,200 units Standard labor rate $13.00 per hr. a. Direct materials price, quantity, and total variance Answer+ I'm Really Cold Coat Company does not expect there to be any beginning or ending inventories of b. Direct labor rate, time, and total variance filler and lining material. At the end of the budget year, I'm Really Cold Coat Company experienced 2. Why are the standard amounts in part (1) based on the actual production at the end of the the following actual results: year instead of the planned production at the beginning of the year?
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
I attached a picture of the Accounting Textbook practice problem instructions (instructions show 2 pictures, it can be read from the first image on the left to the 2nd image on the right), and then I posted a 2nd picture of the actual excel problem where answers need to be inserted (anywhere that there is a blank grey square needs to be solved).
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B
E
F
G
H
J
A
B
D
E
F
G
H
J
33
Standard cost
12
34
Total direct materials cost variance (favorable) unfavorable
10,940
13
35
14 1. a.
Supporting calculations:
Standard quantity used of filler:
Coats produced
Standard amount per coat (Ibs.)
15
Direct Materials Variance
Filler
Liner
Total
16
Price variance:
Womens
Men's
Total
38
4,400
5,800
Actual price
Standard price
17
1.90
8.20
18
2.00
8.00
39
4.00
5.20
19
Variance
40
Total
17,600
30,160
47,760
(0.10)
48,000
(4,800)
0.20
Actual quantity
Direct materials price variance (favorable) unfavorable
Standard quantity used of liner:
Coats produced
Standard amount per coat (yds.)
20
85,100
41
21
22
23
17,020
$
12,220
42
4,400
5,800
43
7.00
9.40
Quantity variance:
Actual quantity used (Ibs.)
Standard quantity used (Ibs.)
Variance (Ibs.)
Standard price
Direct materials quantity variance{favorable) unfavorable
Total direct materials cost variance{favorable) unfavorable
44
Total
30,800
54,520
85,320
24
48.000
85,100
45
47,760
85,320
46
26
240
(220)
47
$2.00
$8.00
48
b.
Women's
Men's
28
480
(1,760)
(1,280)
49
Direct Labor Variance
Coats
Coats
Total
$
10,940
50
Rate variance:
30
51
Actual rate
31
Total direct materials cost variance:
Standard rate
32
Actual cost
53
Variance
33
Standard cost
Actual time
34
Total direct materials cost variance (favorable) unfavorable
$
10,940
55
Direct labor rate variance (favorable) unfavorable
35
56
Supporting calculations:
Standard quantity used of filler:
Coats produced
Standard amount per coat (Ibs.)
36
57
Time variance
37
Womens
Men's
Total
58
Actual tiime
38
4,400
5,800
39
4.00
5.20
59
Standard time
40
Total
17.600
30.160
47,760
60
Variance
41
61
Standard rate
Standard quantity used of liner:
Coats produced
Standard amount per coat (yds.)
Direct labor time variance (favorable) unfavorable
Total direct labor cost variance favorable) unfavorable
42
4,400
5,800
62
43
7.00
9.40
63
44
Total
30,800
54,520
85,320
64
45
65
Total direct labor cost variance:
46
66
Actual cost
47
67
Standard cost
48
b.
Women's
Men's
68
Total direct labor cost variance{favorable) unfavorable
49
Direct Labor Variance
Coats
Coats
Total
69
50
Dato uarinnco:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe1336aa0-e91b-4a1a-a973-d70bd54c1ee9%2F58c73d8c-4415-41e9-a13d-ab8bfc3de3ca%2Fd7enjnq_processed.png&w=3840&q=75)
![V PR 23-2B
Flexible budgeting and variance analysis
Women's Coats
Men's Coats
Actual production
4,400
5,800
Actual Price per Unit
Actual Quantity Purchased and Used
Obj. 1, 2, 3
Filler
$1.90 per Ib.
48,000
Liner
8.20 per yd.
85,100
I'm Really Cold Coat Company makes women's and men's coats. Both products
Actual Labor Rate
Actual Labor Hours Used
Women's coats
$14.10 per hr.
1,825
require filler and lining material. The following planning information has been made
Excel
Men's coats
13.30 per hr.
2,800
available:
Standard Amount per Unit
Men's Coats
Standard Price per Unit
The expected beginning inventory and desired ending inventory were realized.
Women's Coats
$2.00 per Ib.
8.00 per yd.
Filler
4.0 lb.
5.2 lb.
Liner
7.0 yds.
9.4 yds.
Instructions
Standard labor time
0.40 hr.
0.50 hr.
1. Prepare the following variance analyses for both coats and the total, based on the actual results and
Women's Coats
Men's Coats
Planned production
5,000 units
6,200 units
production levels at the end of the budget year:
Standard labor rate
$14.00 per hr.
$13.00 per hr.
a. Direct materials price, quantity, and total variance
Answer +
I'm Really Cold Coat Company does not expect there to be any beginning or ending inventories of
b. Direct labor rate, time, and total variance
filler and lining material. At the end of the budget year, I'm Really Cold Coat Company experienced
2.
Why are the standard amounts in part (1) based on the actual production at the end of the
the following actual results:
year instead of the planned production at the beginning of the year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe1336aa0-e91b-4a1a-a973-d70bd54c1ee9%2F58c73d8c-4415-41e9-a13d-ab8bfc3de3ca%2Fr1cco9_processed.png&w=3840&q=75)
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