Using 6-way variance analysis, determine the following variances:4. Cost volume variance5. Cost factor6. Cost-Quantity factorFormat: 111,111 U or 111,111 F The Dawn Mining Company mines selum, a commonly used material. The following is thecompany's report of its operations:Dawn Mining CompanyReport of OperationsFor the years ended December 31, 2008 and 200720082007Net salesCost of sales891,000840,000945,000688,500Gross profit (loss)202,500(105,000)The following pertains to the company's operations:1. The sales price of selum was increased from P8 per ton to P11 per ton on Jan. 12008.2. New mining machinery was placed in operation on January 1, 2008 that reduced thecost of mining from P9 per ton to P8.50 per ton.3. There was no change in ending inventories that were valued on the LIFO basis.

Concept of Cost accounting - Variance analysis

npany imonly ater company's report of its operations: Dawn Mining Company Report of Operations For the years ended December 31, 2008 and 2007 2008 2007 Net sales 891,000 840,000 Cost of sales 688,500 945,000 Gross profit (loss) 202,500 (105,000)

npany imonly ater company's report of its operations: Dawn Mining Company Report of Operations For the years ended December 31, 2008 and 2007 2008 2007 Net sales 891,000 840,000 Cost of sales 688,500 945,000 Gross profit (loss) 202,500 (105,000)

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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The variance of expected returns is equal to the square root of the expected returns. a. True b. False
c. What is spending variance for wages and salaries? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). The amount of the spending variance for wages and salaries d. What is spending variance for total expenses? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). The amount of the spending variance for total expenses
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Wetherbee Tech Services (WTS) is a chain of computer maintenance technicians for households and small businesses. The following data are available for last year's services: • WTS recorded 120,900 tech calls last year. It had budgeted 126,800 calls, averaging 90 minutes each. • Standard variable labor and support costs per tech call were as follows: Direct IT specialist services: 90 minutes at $54 per hour Variable support staff, supplies, and overhead: 30 minutes at $24 per hour Fixed overhead costs: Annual budget $4,141,800 • Fixed overhead is applied at the rate of $36.00 per call. . Actual tech service call costs: Direct IT specialist services: 120,900 calls averaging 84 minutes at $56.00 per hour Variable support staff, supplies, and overhead: averaging 40 minutes per call at $22.50 per hour x 120,900 calls Fixed overhead Required: a. Prepare a cost variance analysis for each variable cost for last year. b. Prepare a fixed overhead cost variance analysis. Complete this question by…
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