ACCT.PRINCIPLES (LL)
ACCT.PRINCIPLES (LL)
14th Edition
ISBN: 9781119707110
Author: Weygandt
Publisher: WILEY
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Chapter 25, Problem 3EYCT
To determine

Budgeted Cost: The total cost of any activity based on assumptions of past years is the budgeted cost. Total fixed cost and total variable cost are included in total budgeted costs.

To determine: (a) The reasons of disproportionate increase in company’s cost as compared to revenue in third and fourth quarter (b) The type of budgeting suitable for the situation.

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During May, Schultz Company produced 12,000 units of a product called Premium. Premium has a standard materials cost of three pieces per unit at $6 per piece. The actual materials used consisted of 35,000 pieces at a cost of $175,000. Actual purchases of the materials amounted to 45,000 pieces at a cost of $225,000. Compute the two materials variances.

Chapter 25 Solutions

ACCT.PRINCIPLES (LL)

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