A manufactured product has the following information for June. Standard Quantity and Cost Actual Results Direct materials 6 pounds @ $8 per pound 48,500 pounds @ $8.10 per pound Direct labor 2 DLH @ $16 per DLH 15,700 hours @ $16.50 per hour Overhead 2 DLH @ $12 per DLH $ 198,000 Units manufactured 8,000 units Compute the (1) direct materials price variance and (2) direct materials quantity variance. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Roun

Q: On the first day of the fiscal year, a company issues a $4,100,000, 6%, 7-year bond that pays…

A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…

Q: The Johnson Corporation reported the following costs for the manufacture of 51,000 units: (a) direct…

A: The unit cost is calculated as total cost divided by number of units produced. The ending inventory…

Q: which answers are in each category? Is it 1.advertising expense 2.drawings 3.rent revenue 4.owner…

A: Revenue is a Income Earned by the organization from the sale of goods or providing service to the…

Q: Radar Company sells bikes for $460 each. The company currently sells 4,400 bikes per year and could…

A: The special order analysis is performed to compare the revenues and expenses that are incurred for…

Q: Discuss about the rules of independence of auditors in the professional code of conduct?

A: The rules of independence of auditors are a critical component of the professional code of conduct…

Q: What is sufficiency and appropriateness of audit evidence? List out few sources of audit evidences.

A: Sufficiency means audit evidences should be in sufficient quantity to form an opinion on the…

Q: Shadee Corporation expects to sell 520 sun shades in May and 420 in June. Each shade sells for $142.…

A: A budgeted Income statement is prepared by using budgeted figures to find out the net profit or loss…

Q: Cost of merchandise sold Inventory, beginning of year Inventory, end of year Kracker Corp. $32,850.0…

A: The inventory turnover ratio indicates the efficiency of management in selling the inventory.  if…

Q: QUESTION THREE REQUIRED Use the information provided below to prepare the Statement of Changes in…

A: Capital Account BalanceSoo = R 450,000 CrRaya = R 350,000 CrCurrent Account BalanceSoo = R 30,000…

Q: What are the major components of a company's financial statements and what information does each…

A: Financial statements are formal records that provide an overview of a company's financial…

Q: account in October. 4. Cheques written in October that had not cleared the bank as of October 31…

A: Ideally cash balance as per cashbook and cash balance as per bank statement must reconcile with each…

Q: Required information [The following information applies to the questions displayed below.) Raner,…

A: Break-Even Point :— It is the point of production where total cost is equal to total revenue. At…

Q: Required information Problem 09-45 (LO 09-2) (Algo) [The following information applies to the…

A: SECTION 724 deals with Character of gain or loss on contributed unrealized receivables, inventory…

Q: The following transactions were selected from the records of OceanView Company: July 12 July 15 July…

A: A sales discount, often referred to as a trade discount or cash discount, is a price cut on a good…

Q: Suppose that Stillwater Designs has two classes of distributors: 3T distributors and non-31T…

A: Activity-Based Costing:— Under this method, overhead is allocated between products on the basis of…

Q: The purchase of an item of construction equipment is fifty million Kenya shillings(kshs) . The…

A: Depreciation is the amount of reduction in the value of asset due to its normal usage in the…

Q: 1. Prepare a bank reconciliation as of October 31, 20 Johnson Enterprises Bank Reconciliation…

A: Bank Reconciliation is prepared to reconcile the cash balance per book with the  balance per bank.

Q: Superior Micro Products uses the weighted-average method in its process costing system. Data for the…

A: The cost per equivalent offers useful information on the effectiveness and profitability of a good,…

Q: Assume that you are a cashier, and your manager requires that you immediately enter each sale when…

A: The strategy you select should put an emphasis on moral principles, integrity, and the company's…

Q: TVM Consulting bought new building for its headquarters in the year 2000. The purchase cost was…

A: Purchase cost $  776,739Additions $     88,402Total cost $  865,141Useful life39 yearsAnnual…

Q: Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting…

A: The total cost of producing a product, including raw materials and operating costs, is detailed in a…

Q: Corey company has a margin of safety percentage of 20%. The break even point is 285,000 and the…

A: Breakeven sales revenue is that sales level, at which business is not earning or losing anything.…

Q: Data for Hermann Corporation are shown below: Per Unit $.90 Percent of Sales Selling price Variable…

A: Lets understand the basics.When management have option to do some expense to increase income than…

Q: Presented below is information related to Cullumber Corporation for the current year. Beginning…

A: The gross profit is calculated as the difference between sales and cost of goods sold. The ending…

Q: Prepare a classified statement of financial position as at December 31, 2023. Ignore income taxes.…

A: Statement of financial position is a statement that shows the financial position of a company on a…

Q: Could you outline the difference between a fixed cost and a variable cost? Could you identify which…

A: Fixed costs are expenses that do not change in total regardless of the level of output produced.…

Q: QS 11-11 (Algo) Preferred stock issuance and dividends LO C2 1. Prepare the journal entry to record…

A: Answer:- Cumulative preferred stock:- A type of preferred stock known as cumulative preferred stock…

Q: Justine Kofos purchased a house for $700,000 in Victoria for. The stamp duty payable is : Select…

A: On a number of documents, including those pertaining to the purchase or transfer of real estate,…

Q: ear 1 n. 1 Paid $22,015 cash plus $1,635 in sales tax for a new delivery truck estimated to have a…

A: Answer:- 1. Straight line depreciation = (Cost of asset - Salvage value) / Number of useful life

Q: The E.N.D. partnership has the following capital balances as of the end of the current year. Pineda…

A: When two or more persons agreed to do a business together is called partnership. They aagree to…

Q: Sheridan Company sold 10,500 Super-Spreaders on December 31, 2025, at a total price of $1,008,000,…

A: Income statement and balance sheet are two important financial statements being prepared in…

Q: Your answer is partially correct. Bumblebee Company estimates that 385,800 direct labor hours will…

A: Answer:- Flexible budget:- With variations in the volume of the items or activity, a flexible budget…

Q: The Global Group LLC, in 2017 reported the following: Net sales = $135,000; Cost of goods sold= $…

A: Ratio analysis is quantitive method of getting inside review of an organisation. It helps in…

Q: Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor…

A: In order to determine the labor rate variance, the actual cost of labor is required to be subtracted…

Q: Key figures for Samsung follow (in $ millions). Cash and equivalents Accounts receivable, net…

A: Common size percentages are used to analyze and compare the relative importance of different line…

Q: What is the purpose of adjusting entries in accounting, and what types of adjustments are commonly…

A: To ensure that the financial statements correctly reflect a company's financial status and…

Q: Clark Corp. enters into a contract with a customer to build an apartment building for $1,000,800.…

A: Transaction priceAn entity expects to receive an amount of consideration in exchange of transfer of…

Q: Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the…

A: Cost allocation refers to the practice of allocating expenses to particular cost objects or cost…

Q: Exercise 10-5 (Algo) Return on Investment (ROI) [LO10-1) Provide the missing data in the following…

A: Margin -  Margin is the net operating margin earned by the organization it is calculated by Net…

Q: You currently work as a machinist for a factory. Your salary is $28,000 per year. You are thinking…

A: Opportunity cost is the profit lost when one alternative is selected over another. In other words,…

Q: Siegrist Products, Incorporated has a Pump Division that manufactures and sells a number of…

A: Transfer price :— Transfer price is defined as the price at which the related parties transact with…

Q: A manufacturer of cedar shingles has supplied the following data: Bundles of cedar shakes produced…

A: Lets understand the basics.Contribution margin ratio is a ratio of contribution as compared to…

Q: Crane Company purchased a depreciable asset for $74000 on January 1, 2020. The estimated salvage…

A: Depreciation expense refers to the portion of an asset's cost that is allocated as an expense over…

Q: How can sales and lease contracts be effectively structured to align incentives and maximize…

A: The objectives of the seller's profitability and the lessee's value expectations must be balanced in…

Q: Sims Company began operations on January 1. Its cost and sales information for this year follow. $…

A: Variable costing: Under variable costing, unit product cost is calculated by adding direct…

Q: General Motors has three auto divisions (1, 2, and 3). It also has an accounting division and a…

A: To allocate the costs of running the accounting and management consulting departments among the…

Q: [The following information applies to the questions displayed below.] National Retail has two…

A: Overhear rate :— It is the rate used to allocate overhead costs or indirect expenses to cost object.…

Q: Required information [The following information applies to the questions displayed below.] Use the…

A: The cost of goods manufactured includes the direct costs incurred to manufacture the product. It…

Q: You deposit $400 each month into an account earning 3% interest compounded monthly. How much will…

A: The value of money changes with time. It is the concept that worth of a dollar received today is…

Q: Cullumber Printing Corp. uses a job order cost system. The following data summarize the operations…

A: The journal entries are prepared to record the transactions on the regular basis. The direct costs…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.