Prepare journal entries to record the company’s costs and variances for the month of June.

Question

Want to see the full answer?

Answer 1

Question

Chapter 23, Problem 6BP

1.

To determine

Prepare journal entries to record the company’s costs and variances for the month of June.

2.

Identify the favorable variance that attracts manager using the management by exception and also explain the action(s) the manager must consider.

To determine

Manager using management by expectation will first identify the largest variances, attempt to uncover their cause and then later implement certain action that helps in correcting them. The smaller variances are used after major problems are dealt.

Variance like materials quantity variance, materials price variance, the direct labor efficiency variance, and the volume and controllable overhead variances has an occurrence of large variance amount. The manager should go to the purchasing department to ascertain the reason acquiring materials at low price and also identify the reason for using fewer materials and less labor hours by the production department. The controllable variance should be separated into components for individual cost items as to find out the items that have deviated from the expected results. After larger variance amounts are explained and after necessary actions being taken, the manager should seek explanation for the less significant direct labor rate variance from the personnel department.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What was manufactured overhead?

Which of the following choices is the correct status of manufacturing overhead at year-end?

Morris Corporation applies manufacturing overhead at the rate of $40 per machine hour. Budgeted machine hours for the current period were anticipated to be 200,000; however, higher than expected production resulted in actual machine hours worked of 225,000. Budgeted and actual manufacturing overhead figures for the year were $8,000,000 and $8,750,000, respectively. On the basis of this information, the company's year-end overhead was: A. overapplied by $250,000 B. underapplied by $250,000 C. overapplied by $750,000 D. underapplied by $750,000

Answer 2

Question

Chapter 23, Problem 6BP

1.

To determine

Prepare journal entries to record the company’s costs and variances for the month of June.

2.

Identify the favorable variance that attracts manager using the management by exception and also explain the action(s) the manager must consider.

To determine

Manager using management by expectation will first identify the largest variances, attempt to uncover their cause and then later implement certain action that helps in correcting them. The smaller variances are used after major problems are dealt.

Variance like materials quantity variance, materials price variance, the direct labor efficiency variance, and the volume and controllable overhead variances has an occurrence of large variance amount. The manager should go to the purchasing department to ascertain the reason acquiring materials at low price and also identify the reason for using fewer materials and less labor hours by the production department. The controllable variance should be separated into components for individual cost items as to find out the items that have deviated from the expected results. After larger variance amounts are explained and after necessary actions being taken, the manager should seek explanation for the less significant direct labor rate variance from the personnel department.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 23, Problem 6BP

1.

To determine

Prepare journal entries to record the company’s costs and variances for the month of June.

2.

Identify the favorable variance that attracts manager using the management by exception and also explain the action(s) the manager must consider.

To determine

Manager using management by expectation will first identify the largest variances, attempt to uncover their cause and then later implement certain action that helps in correcting them. The smaller variances are used after major problems are dealt.

Variance like materials quantity variance, materials price variance, the direct labor efficiency variance, and the volume and controllable overhead variances has an occurrence of large variance amount. The manager should go to the purchasing department to ascertain the reason acquiring materials at low price and also identify the reason for using fewer materials and less labor hours by the production department. The controllable variance should be separated into components for individual cost items as to find out the items that have deviated from the expected results. After larger variance amounts are explained and after necessary actions being taken, the manager should seek explanation for the less significant direct labor rate variance from the personnel department.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 23, Problem 6BP

1.

To determine

Prepare journal entries to record the company’s costs and variances for the month of June.

2.

Identify the favorable variance that attracts manager using the management by exception and also explain the action(s) the manager must consider.

To determine

Manager using management by expectation will first identify the largest variances, attempt to uncover their cause and then later implement certain action that helps in correcting them. The smaller variances are used after major problems are dealt.

Variance like materials quantity variance, materials price variance, the direct labor efficiency variance, and the volume and controllable overhead variances has an occurrence of large variance amount. The manager should go to the purchasing department to ascertain the reason acquiring materials at low price and also identify the reason for using fewer materials and less labor hours by the production department. The controllable variance should be separated into components for individual cost items as to find out the items that have deviated from the expected results. After larger variance amounts are explained and after necessary actions being taken, the manager should seek explanation for the less significant direct labor rate variance from the personnel department.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 23, Problem 6BP

1.

To determine

Prepare journal entries to record the company’s costs and variances for the month of June.

2.

Identify the favorable variance that attracts manager using the management by exception and also explain the action(s) the manager must consider.

To determine

Manager using management by expectation will first identify the largest variances, attempt to uncover their cause and then later implement certain action that helps in correcting them. The smaller variances are used after major problems are dealt.

Variance like materials quantity variance, materials price variance, the direct labor efficiency variance, and the volume and controllable overhead variances has an occurrence of large variance amount. The manager should go to the purchasing department to ascertain the reason acquiring materials at low price and also identify the reason for using fewer materials and less labor hours by the production department. The controllable variance should be separated into components for individual cost items as to find out the items that have deviated from the expected results. After larger variance amounts are explained and after necessary actions being taken, the manager should seek explanation for the less significant direct labor rate variance from the personnel department.

Answer 6

Chapter 23, Problem 6BP

1.

To determine

Prepare journal entries to record the company’s costs and variances for the month of June.

Answer 7

Chapter 23, Problem 6BP

1.

To determine

Prepare journal entries to record the company’s costs and variances for the month of June.

Answer 8

2.

Identify the favorable variance that attracts manager using the management by exception and also explain the action(s) the manager must consider.

To determine

Manager using management by expectation will first identify the largest variances, attempt to uncover their cause and then later implement certain action that helps in correcting them. The smaller variances are used after major problems are dealt.

Variance like materials quantity variance, materials price variance, the direct labor efficiency variance, and the volume and controllable overhead variances has an occurrence of large variance amount. The manager should go to the purchasing department to ascertain the reason acquiring materials at low price and also identify the reason for using fewer materials and less labor hours by the production department. The controllable variance should be separated into components for individual cost items as to find out the items that have deviated from the expected results. After larger variance amounts are explained and after necessary actions being taken, the manager should seek explanation for the less significant direct labor rate variance from the personnel department.

Answer 9

2.

Identify the favorable variance that attracts manager using the management by exception and also explain the action(s) the manager must consider.

To determine

Manager using management by expectation will first identify the largest variances, attempt to uncover their cause and then later implement certain action that helps in correcting them. The smaller variances are used after major problems are dealt.

Variance like materials quantity variance, materials price variance, the direct labor efficiency variance, and the volume and controllable overhead variances has an occurrence of large variance amount. The manager should go to the purchasing department to ascertain the reason acquiring materials at low price and also identify the reason for using fewer materials and less labor hours by the production department. The controllable variance should be separated into components for individual cost items as to find out the items that have deviated from the expected results. After larger variance amounts are explained and after necessary actions being taken, the manager should seek explanation for the less significant direct labor rate variance from the personnel department.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 23 - Prob. 1MCQ Ch. 23 - Prob. 2MCQ Ch. 23 - Prob. 3MCQ Ch. 23 - Prob. 4MCQ Ch. 23 - Prob. 5MCQ Ch. 23 - Prob. 1DQ Ch. 23 - Prob. 2DQ Ch. 23 - 3. Prepare a flexible budget performance report...Ch. 23 - Prob. 4DQ Ch. 23 - Prob. 5DQ

Prepare journal entries to record the company’s costs and variances for the month of June.

Concept explainers

Videos

Prepare journal entries to record the company’s costs and variances for the month of June.

Want to see the full answer?

Chapter 23 Solutions