Variances The variances are used to calculate to the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference between cost that is actually incurred, and cost which was estimated by the business Variance Report The report which provides the details of the actual and budgeted income and expenses along with the variance is called as variance report. It shows the difference between actual and estimated financial results To describe: The normal industry standard for plants to be considered operating at full capacity.

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Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 11, Problem 11.5BYP

(a)

To determine

Variances

The variances are used to calculate to the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference between cost that is actually incurred, and cost which was estimated by the business

Variance Report

The report which provides the details of the actual and budgeted income and expenses along with the variance is called as variance report. It shows the difference between actual and estimated financial results

To describe: The normal industry standard for plants to be considered operating at full capacity.

(b)

To determine

To describe: The ideal standard of the company for hoping to achieve.

(c)

To determine

To discuss: The reason for the company does not operate a third shift.

(d)

To determine

To discuss: The some potential drawback of the midnight shift, and implication that have for variances from standards.

(e)

To determine

To describe: Potential sales/marketing disadvantage does the third shift.

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Students have asked these similar questions

Cottonwood Company reports the following operating results for the month of August: sales $347,900 (units 4,970); variable costs $216,000; and fixed costs $97,200. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 11% with no change in total variable costs or units sold. 2. Reduce variable costs to 51% of sales. Compute the net income to be earned under each alternative.

Metro Inc. sells a product with the following data: • Selling price per unit: $50 • • Contribution margin ratio: 20% Fixed costs: $180,000 Using the contribution margin ratio approach, determine the sales in dollars and in units needed to achieve a target profit of $60,000.

General accounting

Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 11, Problem 11.5BYP

(a)

To determine

Variances

The variances are used to calculate to the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference between cost that is actually incurred, and cost which was estimated by the business

Variance Report

The report which provides the details of the actual and budgeted income and expenses along with the variance is called as variance report. It shows the difference between actual and estimated financial results

To describe: The normal industry standard for plants to be considered operating at full capacity.

(b)

To determine

To describe: The ideal standard of the company for hoping to achieve.

(c)

To determine

To discuss: The reason for the company does not operate a third shift.

(d)

To determine

To discuss: The some potential drawback of the midnight shift, and implication that have for variances from standards.

(e)

To determine

To describe: Potential sales/marketing disadvantage does the third shift.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 11, Problem 11.5BYP

(a)

To determine

Variances

The variances are used to calculate to the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference between cost that is actually incurred, and cost which was estimated by the business

Variance Report

The report which provides the details of the actual and budgeted income and expenses along with the variance is called as variance report. It shows the difference between actual and estimated financial results

To describe: The normal industry standard for plants to be considered operating at full capacity.

(b)

To determine

To describe: The ideal standard of the company for hoping to achieve.

(c)

To determine

To discuss: The reason for the company does not operate a third shift.

(d)

To determine

To discuss: The some potential drawback of the midnight shift, and implication that have for variances from standards.

(e)

To determine

To describe: Potential sales/marketing disadvantage does the third shift.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 11, Problem 11.5BYP

(a)

To determine

Variances

The variances are used to calculate to the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference between cost that is actually incurred, and cost which was estimated by the business

Variance Report

The report which provides the details of the actual and budgeted income and expenses along with the variance is called as variance report. It shows the difference between actual and estimated financial results

To describe: The normal industry standard for plants to be considered operating at full capacity.

(b)

To determine

To describe: The ideal standard of the company for hoping to achieve.

(c)

To determine

To discuss: The reason for the company does not operate a third shift.

(d)

To determine

To discuss: The some potential drawback of the midnight shift, and implication that have for variances from standards.

(e)

To determine

To describe: Potential sales/marketing disadvantage does the third shift.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 11.5BYP

(a)

To determine

Variances

The variances are used to calculate to the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference between cost that is actually incurred, and cost which was estimated by the business

Variance Report

The report which provides the details of the actual and budgeted income and expenses along with the variance is called as variance report. It shows the difference between actual and estimated financial results

To describe: The normal industry standard for plants to be considered operating at full capacity.

(b)

To determine

To describe: The ideal standard of the company for hoping to achieve.

(c)

To determine

To discuss: The reason for the company does not operate a third shift.

(d)

To determine

To discuss: The some potential drawback of the midnight shift, and implication that have for variances from standards.

(e)

To determine

To describe: Potential sales/marketing disadvantage does the third shift.

Answer 6

Chapter 11, Problem 11.5BYP

(a)

To determine

Variances

The variances are used to calculate to the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference between cost that is actually incurred, and cost which was estimated by the business

Variance Report

The report which provides the details of the actual and budgeted income and expenses along with the variance is called as variance report. It shows the difference between actual and estimated financial results

To describe: The normal industry standard for plants to be considered operating at full capacity.

Answer 7

Chapter 11, Problem 11.5BYP

(a)

To determine

Variances

The variances are used to calculate to the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference between cost that is actually incurred, and cost which was estimated by the business

Variance Report

The report which provides the details of the actual and budgeted income and expenses along with the variance is called as variance report. It shows the difference between actual and estimated financial results

To describe: The normal industry standard for plants to be considered operating at full capacity.

Answer 8

(b)

To determine

To describe: The ideal standard of the company for hoping to achieve.

Answer 9

(b)

To determine

To describe: The ideal standard of the company for hoping to achieve.

Answer 10

(c)

To determine

To discuss: The reason for the company does not operate a third shift.

Answer 11

(c)

To determine

To discuss: The reason for the company does not operate a third shift.

Answer 12

(d)

To determine

To discuss: The some potential drawback of the midnight shift, and implication that have for variances from standards.

Answer 13

(d)

To determine

To discuss: The some potential drawback of the midnight shift, and implication that have for variances from standards.

Answer 14

(e)

To determine

To describe: Potential sales/marketing disadvantage does the third shift.

Answer 15

(e)

To determine

To describe: Potential sales/marketing disadvantage does the third shift.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 11 - (a) Standard costs are the expected total cost of...Ch. 11 - (a) Explain the similarities and differences...Ch. 11 - Standard costs facilitate management planning....Ch. 11 - Standard costs facilitate management planning....Ch. 11 - Prob. 5Q Ch. 11 - What factors should be considered in setting (a)...Ch. 11 - The objective in setting the direct labor quantity...Ch. 11 - How is the predetermined overhead rate determined...Ch. 11 - What is the difference between a favorable cost...Ch. 11 - In each of the following formulas, supply the...

Solution Summary: The author explains that variances are used to calculate the variation in actual cost by comparing it to the standard cost.

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To describe: The ideal standard of the company for hoping to achieve.

To discuss: The reason for the company does not operate a third shift.

To discuss: The some potential drawback of the midnight shift, and implication that have for variances from standards.

To describe: Potential sales/marketing disadvantage does the third shift.

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Chapter 11 Solutions