Variance: Variance is the variation in the actual and budgeted output. The budgeted output is taken as standard to compare it with the actual to find the deviations in the performance. Flexible Budget Flexible budget is a financial plan prepared for a particular period of time on different levels of output experienced in the production unit. To calculate: Flexible budget variance .

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Answer 1

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Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 7, Problem 7.21E

1.

To determine

Variance:

Variance is the variation in the actual and budgeted output. The budgeted output is taken as standard to compare it with the actual to find the deviations in the performance.

Flexible Budget

Flexible budget is a financial plan prepared for a particular period of time on different levels of output experienced in the production unit.

To calculate: Flexible budget variance.

2.

To determine

To calculate: Price and efficiency variance.

3.

To determine

To explain: The results of part 1 and 2.

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Standard Quantity Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Price or Rate Standard Cost Direct materials 5.90 pounds $0.70 per pound $4.13 Direct labor 0.50 hours $34.50 per hour $ 17.25 Variable manufacturing 0.50 hours $8.60 per hour $ 4.30 overhead During March, the following activity was recorded by the company: -The company produced 2,500 units during the month. -A total of 19,500 pounds of material were purchased at a cost of $13,680. -There was no beginning inventory of materials on hand to start the month; at the end of the month, 3,720 pounds of material remained in the warehouse. -During March, 1,100 direct labor-hours were worked at a rate of $31.50 per hour. -Variable manufacturing overhead costs during March totaled $14,161. -The direct materials purchases…

Answer 2

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Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 7, Problem 7.21E

1.

To determine

Variance:

Variance is the variation in the actual and budgeted output. The budgeted output is taken as standard to compare it with the actual to find the deviations in the performance.

Flexible Budget

Flexible budget is a financial plan prepared for a particular period of time on different levels of output experienced in the production unit.

To calculate: Flexible budget variance.

2.

To determine

To calculate: Price and efficiency variance.

3.

To determine

To explain: The results of part 1 and 2.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 7, Problem 7.21E

1.

To determine

Variance:

Variance is the variation in the actual and budgeted output. The budgeted output is taken as standard to compare it with the actual to find the deviations in the performance.

Flexible Budget

Flexible budget is a financial plan prepared for a particular period of time on different levels of output experienced in the production unit.

To calculate: Flexible budget variance.

2.

To determine

To calculate: Price and efficiency variance.

3.

To determine

To explain: The results of part 1 and 2.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 7, Problem 7.21E

1.

To determine