Berman's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Flexible Variances Budget Price Efficiency. Material A $40,000 $1,000F $3,000U Material B 60,000 500U 1,500F Direct manufacturing labor 80,000 500U 2,500F The most likely explanation of the above direct manufacturing labor variances is that management may have a problem with budget slack and might be using lax standards for both labor-wage rates and expected efficiency the company may have assigned more experienced employees this month than originally planned Show Transcribed Text 2 The most likely explanation of the above direct manufacturing labor variances is that management may have a problem with budget slack and might be using lax standards for both labor-wage rates and expected efficiency the company may have assigned more experienced employees this month than originally planned employees did not work as efficiently as expected to accomplish the job the average wage rate paid to employees was less than expected

Berman's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Flexible Variances Budget Price Efficiency. Material A $40,000 $1,000F $3,000U Material B 60,000 500U 1,500F Direct manufacturing labor 80,000 500U 2,500F The most likely explanation of the above direct manufacturing labor variances is that management may have a problem with budget slack and might be using lax standards for both labor-wage rates and expected efficiency the company may have assigned more experienced employees this month than originally planned Show Transcribed Text 2 The most likely explanation of the above direct manufacturing labor variances is that management may have a problem with budget slack and might be using lax standards for both labor-wage rates and expected efficiency the company may have assigned more experienced employees this month than originally planned employees did not work as efficiently as expected to accomplish the job the average wage rate paid to employees was less than expected

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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Wilson Manufacturing has provided you with the following variances for the month of March: Direct materials price variance Direct materials quantity variance Direct labor rate variance Direct labor efficiency variance Required: $3,230 Favorable (4,700) Unfavorable (3,900) Unfavorable (9,500) Unfavorable a. Calculate the direct materials spending variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the direct labor spending variance Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). a. Direct materials spending variance b. Direct labor spending variance
10. What is the labor efficiency variance foP March? 11. What is the labor spending variance for March? 12. What variable manufacturing overhead cost would be included in the company's planning budget for March? 13. What variable manufacturing overhead cost would be included in the company's flexible hud get for March? 14. What is the variable overhead rate variance for March? 15. What is the variable overhead efficiency variance for March? connect EXERCISE 10-1 Direct Materials Variances LO10-1 Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. The plastic cost the company $171,000. According to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. Required: What is the standard quantity of…
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Longman, Inc., manufactures lead crystal glasses. Longman, Inc.'s managers recently calculated the following: Variances after completing production of 6,800 glasses: Direct materials cost variance $1,496 F Direct labor cost variance $6,120 F Direct materials efficiency variance $680 U Direct labor efficiency variance $8,840 U Read the requirements. Requirement 1. For each variance, who in Longman, Inc.'s organization is most likely responsible? Direct materials cost variance Direct materials efficiency variance Requirements Direct labor cost variance Direct labor efficiency variance 1. For each variance, who in Longman, Inc.'s organization is most likely responsible? 2. Interpret the direct materials and direct labor variances for Longman, Inc.'s management. Print Done
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Variable Fixed Component per Month Component per Job $ 277 Actual Total for February $ 27,720 $ 8,350 $ 8,370 Revenue Technician wages $ 8,500 Mobile lab operating expenses $ 4,900 $ 33 Office expenses $ 2,400 $2 $ 2,470 Advertising expenses $ 1,600 $ 1,670 Insurance $ 2,850 $ 2,850 Miscellaneous expenses $ 960 $ 1 $ 375 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $8,370. The company expected to work 110 jobs in February, but actually worked 120 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F"…
Clementine Company makes skateboards. They prepare master and flexible budgets and then perform variance analysis after the budget plan period elapses. Their data is as follows: Budget Actual $105 Selling price per unit $100 Variable cost per unit $55 $47 Quantity sold 934 990 What is the Clementine's flexible budget variance for VARIABLE COSTS? If the variance is unfavorable put a minus sign in front of your answer. Enter your answer without commas or decimals.
Ray Company provided the following excerpts from its Production Department's flexible budget performance report. Required: Complete the Production Department's Flexible Budget Performance Report. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round "rate per hour" answers to 2 decimal places. Labor-hours (q) Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory administration Total expenses $ $ $ 7,300 (9) + + + 80,400 18.860 + Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 Actual Results $ $ 1.70 (q) (9) (9) 1.70 (9) $ $ 9,560 174,170 5,052 339,328 Spending Variances 1,108 F 1,530 U 0 None Flexible Budget $ 172,080 23,752 4,524 Activity Variances 720 U 0 None Planning Budget 9,080 20,920 4,380
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10)The flexible-budget variance for materials is $5,000 (U). The sales-volume variance is $13,000 (U). The price variance for material is $31000 (F). The efficiency variance for direct manufacturing labor is $7,000 (F). Calculate the efficiency variance for materials. 11)Corp has prepared the following flexible budget for . F = favorable variance, U = unfavorable variance.
Ray Company provided the following excerpts from its Production Department's flexible budget performance report. Required: Complete the Production Department's Flexible Budget Performance Report. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round "rate per hour answers to 2 decimal places. Labor hours (a) Direct labor Indirect labor Uslities Supplies Equipment depreciation Factory administration Total expense $ 7,800 $ 81,650 $ 18,960 (4) * . Ray Company Production Department Flexible Budget Performance Report For the Month Ended August 31 Actual Results Spending Variances S 1.30 (4) (9) (4) $ 1.20 (4) $ $ 9,610 199,145 5,122 361,120 2,662 F 1,580 U 0 None Flexible Budget $ 197,005 20,043 4.574 Activity Variances 960 U 0 None Planning Budget 9,130 26,060 4.430
Clementine Company makes skateboards. They prepare master and flexible budgets and then perform variance analysis after the budget plan period elapses. Their data is as follows: Selling price per unit Budget $98 Variable cost per unit Quantity sold 1,044 $50 Actual $97 $46 1,036 What is the Clementine's flexible budget variance for VARIABLE COSTS? If the variance is unfavorable put a minus sign in front of your answer. Enter your answer without commas or decimals.
The management of Cleancut Lawnmowers has calculated the following variances: Direct materials cost variance $11,000 U Direct materials efficiency variance 35,000 F Direct labor cost variance 15,000 F Direct labor efficiency variance 13,000 U Variable overhead cost variance 3,500 F Variable overhead efficiency variance 6,000 F Fixed overhead cost variance 4,500 F When determining the total product cost flexible budget variance, what is the total manufacturing overhead variance of the company?