The Clarkson Company produces engine parts for car manufactur- ers. A new accountant intem at Clarkson has accidentally deleted the company's variance analysis calculations for the year ended December 31, 2017. The following table is what remains of the data. Review Home Insert Page Layout Formulas Data View Performance Report, Year Ended December 31, 2017 2 Flexible-Budget Flexible Budget Sales-Volume Static Budget 120,000 Variances Actual Results Variances 3 130,000 $715,000 515,000 200,000 140,000 $ 60,000 4 Units sold 5 Revenues (sales) 6 Variable costs 7 Contribution margin 8 Fixed costs 9 Operating income $420,000 240,000 180,000 120,000 $ 60,000

Q: (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute…

A: Calculation of overhead volume  variance and controllable variance are as follows.An Overhead…

Q: For most organizations, a budget is the benchmark for evaluating actual performance. O True O False

A: Budget is the estimation of future data for the achievement of its goals and objectives.

Q: At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material -…

A: Standard price = Estimated Raw material cost / Estimated units Raw material efficiency variance =…

Q: Which of the following statements is true? I. A revenue variance is unfavorable if the revenue in…

A: Revenue variance is the variance between actual revenue and the expected or budgeted revenue. It…

Q: What can you tell me about variance, as it concerns fixed or variable budgets? What is favorable…

A: The question is related to Standard costing and Budgetory Comtrol. Variance may be defined as the…

Q: Calculate the following and determine if variances are favorable

A: Compute the total standard material cost.

Q: Match the definition the term.  Terms: Cost variance   Overhead cost variance   Price variance…

A: The practise of organizing and regulating a company's operating expenses is known as cost…

Q: 1. How is the flexible budget used within the variance analysis system to evaluate effectiveness and…

A: 1) Flexible budget refers to a budget that flexes with change in volume or change in activity. It is…

Q: Fixed overhead volume variance is a flexible budget variance. O True False

A: Fixed overheads are those indirect costs which will not change with change in activity level. These…

Q: Variances are computed by taking the difference between which of the following? Multiple Choice O…

A: Product costs are the costs that are directly related to the production of goods or services. Period…

Q: Define Zero Base Budgeting. What are the steps involved in this?

A: The company prepares the budget to make a plan for how the money is spent. Budgeting is very…

Q: Estimating the effects of changes in budget assumptions, such as determining the impact of an…

A: BUDGET : It is an estimation of REVENUE and EXPENSES. The factors affecting the budgets are…

Q: A static budget is most useful for evaluating a manager's performance in controlling variable costs.…

A: Budgets are the statements prepared by the entity for the purpose of estimating the future values.…

Q: When comparing the static planning budget to actual activity, a problem that arises when actual…

A: Budget is the estimation of revenue and expense prior to start the operation. To manage the working…

Q: Based on the content of this module, what advice would you give to someone starting out with…

A: Variance analysis is used to identify the variations between data or figures of two balances of the…

Q: Note: Use the minus sign to indicate negative values (when the budgeted amount is greater than the…

A: In the variance analysis, the actual cost incurred, and the standard cost are compared with each…

Q: My totals won't add up for the spending variances?

A: A spending variance is the variance which has been made by the company over the activities on which…

Q: When analyzing an organization's budget using 2-variance analysis, the 2 elements used are volume…

A: The correct answer is: b. price varianceA 2-variance study of an organization's budget includes two…

Q: The amount of the activity variance for revenue What is the spending variance for the cost of…

A: Lets understand the basics.Activity variance for revenue is a variance between the planned revenue…

Q: Which of the following elements are used in calculating Costs in a Flexible Budget?   a. Budgeted…

A: The flexible budget performance report is prepared to compare the actual data with flexible Budget…

Q: What is the difference between a flexible budget based on actual volume and a master budget based on…

A: The correct term for the difference between a flexible budget based on actual volume and a master…

Q: Which ONE of the following is true?   a. Assume all costs are fixed when creating a flexible…

A: A flexible budget is a financial plan that adjusts or flexes to changes in the level of activity or…

Q: 1. Prepare a performance report with a flexible budget and a static budget. 2. Comment on the…

A: Flexible budget is a adjusted budget which is prepared end of a accounting period based on actual…

Q: 2. Yellow Ltd, a food manufacturer, is reviewing its operation for March 2021. The company produces…

A: Variance analysis is very important technique of comparing budgeted costs with actual costs in order…

Q: Describe the procedure to compute the variance of return for a project?

A: Variance is ascertained as follows: The mean worth is dictated by including all the information…

Q: Variance is underapplied when: Select one: a. None of the options b. If actual overhead > applied…

A: The variance is the difference between standard and the actual data.