Exercise 17-22 (Algo) Variable Cost Variances: Materials Purchased and Materials Used Are Not Equal (LO 17-2) Fischer Fabrication reported the following information concerning its direct materials: Direct materials purchased (actual) $ 374,600 $360,000 Standard cost of materials purchased $ 332,000 Standard price times actual amount of materials used Actual production Standard direct materials costs per unit produced Required: Compute the direct materials cost variances. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Direct Materials Price variance 56,600 units $6 Efficiency variance Total direct materials cost variance

Q: Prepare the entry to record the purchase of Cullumber Company on Linden's books. (Credit account…

A: The acquisition is one of the transactions where one company purchases or acquires another company…

Q: Accounting equation system

A: The answer is provided as follows:

Q: classified balance sheet

A: Classified balance sheet is a part of financial statements in which items are classified under…

Q: Distinct features between management accounting and financial accounting

A: The objective of this question is to distinguish between management accounting and financial…

Q: Define Economic entity assumption.

A: Economic entity assumption is an accounting principle that separates the  transactions carried out…

Q: Basic purpose of accounting

A: There are two basic purpose of Accounting they are 1. Ascertaining Financial results (Profit ans…

Q: Question: 1) define Accounting Information System (AIS) ? briefly define.

A: Lets understand the basics. Accounting information system basically means a developed system which…

Q: Distinguish between assets and liabilities.

A: Step 1 Assets can be defined as the resources owned by the organization which is capable of…

Q: Relationship between IT Control and Financial reporting

A: Information Technology (IT) control can be defined as the specific activities that are performed by…

Q: Explain purchase accounting

A: Purchase accounting means any premium paid by bidder in excess of the value of books of aims assets…

Q: Whole Accounting cycle and example

A: Solution:- Introduction:- Accounting Cycle, also known as “accounting process” or “Book-keeping…

Q: What are operational assets? Give example?

A: Operational assets: Operational assets are those assets acquired for use in the day to day…

Q: termediate goods in manage

A: In the context of management accounting, intermediate goods are products that are not quite finished…

Q: state the accounting equation and itss components - pls explain in details with examples

A: Accounting refers to the process of recording, posting, analyzing, and reporting the transactions of…

Q: What is management accounting information used for? taking example

A:

Q: Define Debit

A: Accounting depends on double entry system. As per dual aspect principle of accounting, each and…

Q: What accounting information system provides?

A: An Accounting Information System (AIS) is a structure that a business uses to collect, store,…

Q: what is current assets

A: Assets are the resources that a firm or an individual owns at a particular time. Assets are created…

Q: Differentiate the Revenue Cycle and Expenditure cycle

A: The processes of the business are divided into different accounting cycles. The revenue cycle,…

Q: accounting and auditing

A: Accounting is started when the bookkeeping is completed. Whereas, auditing is started when…

Q: Define Profi t and loss (P&L) statement

A: Introduction: The financial statement is a detailed analysis of the financial situation of the…

Q: What does operating activities includes?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Range of services provided by accounting

A: Accounting is a process of identifying and recording the financial transactions of an organization…

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.