Institute Technologies is choosing new cost drivers for its accounting system. One driver is laborhours; the other is a combination of machine hours for unit variable costs and number of setupsfor a pool of batch-level costs. Data for the past year follow.Budget209,000369,000ActualLabor hours209,000459,000Machine hoursNumber of setups3,9004,200$2,065,500Unit variable cost pool$1,660,500$1,053,000Batch-level cost pool$1,134,000Assume that both cost pools for Institute are combined into a single pool, and labor hours is thedriver. The total flexible budget for the actual level of labor hours and the total variance for thecombined pool are:Flexible BudgetVarianceА.$1,660,500$405,000 U$2,713,500$486,000 U$405,000 U$ 81,000 UВ.С.$2,794,500$3,118,500$3,199,500D.Е.$

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Description: Institute Technologies is choosing new cost drivers for its accounting system. One driver is laborhours; the other is a combination of machine hours for unit variable costs and number of setupsfor a pool of batch-level costs. Data for the past year

Answer) Calculation of Total Flexible Budget for Actual Labor hours Flexible Budget for Actual Labor…

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Institute Technologies is choosing new cost drivers for its accounting system. One driver is labor hours; the other is a combination of machine hours for unit variable costs and number of setups for a pool of batch-level costs. Data for the past year follow. Budget Actual Labor hours 209,000 209,000 Machine hours 369,000 459,000 Number of setups 3,900 4,200 Unit variable cost pool $1,660,500 $2,065,500 Batch-level cost pool $1,053,000 $1,134,000 Assume that both cost pools for Institute are combined into a single pool, and labor hours is the driver. The total flexible budget for the actual level of labor hours and the total variance for the combined pool are: Flexible Budget Variance А. $1,660,500 $405,000 U $2,713,500 $2,794,500 $3,118,500 в. $486,000 U с. $405,000 U D. $ 81,000 U Е. $3,199,500 %24

Institute Technologies is choosing new cost drivers for its accounting system. One driver is labor hours; the other is a combination of machine hours for unit variable costs and number of setups for a pool of batch-level costs. Data for the past year follow. Budget Actual Labor hours 209,000 209,000 Machine hours 369,000 459,000 Number of setups 3,900 4,200 Unit variable cost pool $1,660,500 $2,065,500 Batch-level cost pool $1,053,000 $1,134,000 Assume that both cost pools for Institute are combined into a single pool, and labor hours is the driver. The total flexible budget for the actual level of labor hours and the total variance for the combined pool are: Flexible Budget Variance А. $1,660,500 $405,000 U $2,713,500 $2,794,500 $3,118,500 в. $486,000 U с. $405,000 U D. $ 81,000 U Е. $3,199,500 %24

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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