Anderson Candy Company budgeted the following costs for anticipated production for October: Line Item Description Amount Advertising expenses $250,940 Manufacturing supplies 13,750 Power and light 41,020 Sales commissions 280,570 Factory insurance 23,890 Production supervisor wages 120,650 Production control wages 31,370 Executive officer salaries 255,770 Materials management wages 34,500 Factory depreciation 19,540 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Anderson Candy CompanyFactory Overhead Cost BudgetFor the Month Ending October 31 Line Item Description Amount Amount Variable factory overhead costs: $- Select - - Select - - Select - - Select - - Select - Total variable factory overhead costs $Total variable factory overhead costs Fixed factory overhead costs: $- Select - - Select - Total fixed factory overhead costs Total fixed factory overhead costs Total factory overhead costs $Total factory overhead
Anderson Candy Company budgeted the following costs for anticipated production for October: Line Item Description Amount Advertising expenses $250,940 Manufacturing supplies 13,750 Power and light 41,020 Sales commissions 280,570 Factory insurance 23,890 Production supervisor wages 120,650 Production control wages 31,370 Executive officer salaries 255,770 Materials management wages 34,500 Factory depreciation 19,540 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Anderson Candy CompanyFactory Overhead Cost BudgetFor the Month Ending October 31 Line Item Description Amount Amount Variable factory overhead costs: $- Select - - Select - - Select - - Select - - Select - Total variable factory overhead costs $Total variable factory overhead costs Fixed factory overhead costs: $- Select - - Select - Total fixed factory overhead costs Total fixed factory overhead costs Total factory overhead costs $Total factory overhead
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Question
Anderson Candy Company budgeted the following costs for anticipated production for October:
| Line Item Description | Amount |
|---|---|
| Advertising expenses | $250,940 |
| Manufacturing supplies | 13,750 |
| Power and light | 41,020 |
| Sales commissions | 280,570 |
| Factory insurance | 23,890 |
| Production supervisor wages | 120,650 |
| Production control wages | 31,370 |
| Executive officer salaries | 255,770 |
| Materials management wages | 34,500 |
| Factory |
19,540 |
Prepare a factory
Anderson Candy CompanyFactory Overhead Cost BudgetFor the Month Ending October 31
| Line Item Description | Amount | Amount |
|---|---|---|
| Variable factory overhead costs: | ||
|
|
$- Select - | |
|
|
- Select - | |
|
|
- Select - | |
|
|
- Select - | |
|
|
- Select - | |
| Total variable factory overhead costs | $Total variable factory overhead costs | |
| Fixed factory overhead costs: | ||
|
|
$- Select - | |
|
|
- Select - | |
| Total fixed factory overhead costs | Total fixed factory overhead costs | |
| Total factory overhead costs | $Total factory overhead costs |
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