Standard costs: Standard costs are the cost which are used as the best estimates during the budgetary process and are compared with the actual costs and variances are calculated. Direct material variances: Direct Material variances can be defined as the variances in either the use of the material when compared with the budgets or the variances in the prices of the material purchased and expected. Direct labor variances: Direct Labor variances can be defined as the variances in either the use of the labor when compared with the budgets or the variances in the prices of the labor purchased and expected. Variable overhead cost variance: Variable overhead cost variance can be defined as difference in the standard variable overheads and actual variable overheads. Variable overhead efficiency variance: Variable overhead efficiency variance can be defined as difference between the standard hours or standard basis of use and actual hours or actual basis of use Fixed overhead cost variance: Fixed overhead cost variance can be defined as difference in the standard fixed overheads and actual fixed overheads. Fixed overhead volume variance: Fixed overhead volume variance can be defined as difference between fixed overhead for standard output and fixed overhead for actual output. To complete: The table i.e. to find the missing variances

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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 23, Problem S23.11SE

To determine

Concept Introduction:

Standard costs:

Standard costs are the cost which are used as the best estimates during the budgetary process and are compared with the actual costs and variances are calculated.

Direct material variances:

Direct Material variances can be defined as the variances in either the use of the material when compared with the budgets or the variances in the prices of the material purchased and expected.

Direct labor variances:

Direct Labor variances can be defined as the variances in either the use of the labor when compared with the budgets or the variances in the prices of the labor purchased and expected.

Variable overhead cost variance:

Variable overhead cost variance can be defined as difference in the standard variable overheads and actual variable overheads.

Variable overhead efficiency variance:

Variable overhead efficiency variance can be defined as difference between the standard hours or standard basis of use and actual hours or actual basis of use

Fixed overhead cost variance:

Fixed overhead cost variance can be defined as difference in the standard fixed overheads and actual fixed overheads.

Fixed overhead volume variance:

Fixed overhead volume variance can be defined as difference between fixed overhead for standard output and fixed overhead for actual output.

To complete:

The table i.e. to find the missing variances

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Mead Incorporated began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 January 20 Purchased Johnson & Johnson bonds for $20,500. February 9 Purchased Sony notes for $55,440. June 12 Purchased Mattel bonds for $40,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $21,500; Sony, $52,500; and Mattel, $46,350. Year 2 April 15 Sold all of the Johnson & Johnson bonds for $23,500. July 5 Sold all of the Mattel bonds for $35,850. July 22 Purchased Sara Lee notes for $13,500. August 19 Purchased Kodak bonds for $15,300. December 31 Fair values for debt in the portfolio are Kodak, $17,325; Sara Lee, $12,000; and Sony, $60,000. Year 3 February 27 Purchased Microsoft bonds for $160,800. June 21 Sold all of the Sony notes for $57,600. June 30 Purchased Black & Decker bonds for $50,400. August 3 Sold all of the Sara…

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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 23, Problem S23.11SE

To determine

Concept Introduction:

Standard costs:

Standard costs are the cost which are used as the best estimates during the budgetary process and are compared with the actual costs and variances are calculated.

Direct material variances:

Direct Material variances can be defined as the variances in either the use of the material when compared with the budgets or the variances in the prices of the material purchased and expected.

Direct labor variances:

Direct Labor variances can be defined as the variances in either the use of the labor when compared with the budgets or the variances in the prices of the labor purchased and expected.

Variable overhead cost variance:

Variable overhead cost variance can be defined as difference in the standard variable overheads and actual variable overheads.

Variable overhead efficiency variance:

Variable overhead efficiency variance can be defined as difference between the standard hours or standard basis of use and actual hours or actual basis of use

Fixed overhead cost variance:

Fixed overhead cost variance can be defined as difference in the standard fixed overheads and actual fixed overheads.

Fixed overhead volume variance:

Fixed overhead volume variance can be defined as difference between fixed overhead for standard output and fixed overhead for actual output.

To complete:

The table i.e. to find the missing variances

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Check out a sample textbook solution

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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 23, Problem S23.11SE

To determine

Concept Introduction:

Standard costs:

Standard costs are the cost which are used as the best estimates during the budgetary process and are compared with the actual costs and variances are calculated.

Direct material variances:

Direct Material variances can be defined as the variances in either the use of the material when compared with the budgets or the variances in the prices of the material purchased and expected.

Direct labor variances:

Direct Labor variances can be defined as the variances in either the use of the labor when compared with the budgets or the variances in the prices of the labor purchased and expected.

Variable overhead cost variance:

Variable overhead cost variance can be defined as difference in the standard variable overheads and actual variable overheads.

Variable overhead efficiency variance:

Variable overhead efficiency variance can be defined as difference between the standard hours or standard basis of use and actual hours or actual basis of use

Fixed overhead cost variance:

Fixed overhead cost variance can be defined as difference in the standard fixed overheads and actual fixed overheads.

Fixed overhead volume variance:

Fixed overhead volume variance can be defined as difference between fixed overhead for standard output and fixed overhead for actual output.

To complete:

The table i.e. to find the missing variances

Expert Solution & Answer

Want to see the full answer?

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 23, Problem S23.11SE

To determine