Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
bartleby

Concept explainers

bartleby

Videos

Textbook Question
Book Icon
Chapter 7, Problem 7.22E

Flexible budget. Bryant Company’s budgeted prices for direct materials, direct manufacturing labor and direct marketing (distribution) labor per attaché case are $43, $6, and $13, respectively. The president is pleased with the following performance report:

Chapter 7, Problem 7.22E, Flexible budget. Bryant Companys budgeted prices for direct materials, direct manufacturing labor

Actual output was 10,000 attaché cases. Assume all three direct-cost items shown are variable costs.

Required

Is the president’s pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget.

Blurred answer
Students have asked these similar questions
​Company's budgeted prices for direct​ materials, direct manufacturing​ labor, and direct marketing​ (distribution) labor per​ attaché case are$40​, $8​,and $13​, respectively. The president is pleased with the following performance​ report:Actual output was 9,200 ​attaché cases. Assume all three​direct-cost items above are variable costs. Requirement Is the​ president's pleasure​ justified? Prepare a revised performance report that uses a flexible budget and a static budget.
Bryant ​Company's budgeted prices for direct​ materials, direct manufacturing​ labor, and direct marketing​ (distribution) labor per​ attaché case are $39​, $6​, and $11​, respectively. The president is pleased with the following performance​ report: LOADING... ​(Click the icon to view the performance​ report.)   Actual output was 10,000 ​attaché cases. Assume all three​ direct-cost items above are variable costs.   Requirement Is the​ president's pleasure​ justified? Prepare a revised performance report that uses a flexible budget and a static budget.   Prepare a revised performance report that uses a flexible budget and a static budget. Begin with the actual​ results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable​ (F) or unfavorable​ (U).​ (For variances with a​ $0 balance, make sure to enter​ "0" in the appropriate field. If the variance is​ zero, do not select a​ label.)     Actual   Results Output…
You are working as Executive Assistant to the Chairman in Bharat Gears, an automotive company in Chennai. The following data has been presented to you for interpretation to be given to the Chairman explaining to him the department's responsibility for deviation of performance. Prepare a Flexible budget and show who is responsible for deviation of performance. This is one month's data. Static Budget in Output Units Actual Output Units produced and sold. Budgeted Selling Price per unit of Output Budgeted Variable Costs per unit of Output Budgeted Fixed Costs Per Month Actual Revenue Actual Variable Costs Favorable Variance in Fixed Costs 25,000 23,000 Rs 40.00 Rs 25.00 Rs 2,00,000.00 Rs 8,74,000.00 Rs 6,30,000.00 Rs 5,000.00 Although output units sold exceeded expectations, operating income did not. Assume that there was no beginning or ending inventory. You thought to analyze the situation. Use F for Favourable and U for Unfavourable.

Chapter 7 Solutions

Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)

Ch. 7 - How does variance analysis help in continuous...Ch. 7 - Why might an analyst examining variances in the...Ch. 7 - Prob. 7.13QCh. 7 - When inputs are substitutable, how can the direct...Ch. 7 - Benchmarking against other companies enables a...Ch. 7 - Metal Shelf Companys standard cost for raw...Ch. 7 - All of the following statements regarding...Ch. 7 - Amalgamated Manipulation Manufacturings (AMM)...Ch. 7 - Atlantic Company has a manufacturing facility in...Ch. 7 - Basix Inc. calculates direct manufacturing labor...Ch. 7 - Flexible budget. Sweeney Enterprises manufactures...Ch. 7 - Flexible budget. Bryant Companys budgeted prices...Ch. 7 - Flexible-budget preparation and analysis. Bank...Ch. 7 - Flexible budget, working backward. The Clarkson...Ch. 7 - Flexible-budget and sales volume variances....Ch. 7 - Price and efficiency variances. Sunshine Foods...Ch. 7 - Materials and manufacturing labor variances....Ch. 7 - Direct materials and direct manufacturing labor...Ch. 7 - Price and efficiency variances, journal entries....Ch. 7 - Materials and manufacturing labor variances,...Ch. 7 - Journal entries and T-accounts (continuation of...Ch. 7 - Price and efficiency variances, benchmarking....Ch. 7 - Static and flexible budgets, service sector....Ch. 7 - Flexible budget, direct materials, and direct...Ch. 7 - Variance analysis, nonmanufacturing setting. Joyce...Ch. 7 - Comprehensive variance analysis review. Ellis...Ch. 7 - Possible causes for price and efficiency...Ch. 7 - Material-cost variances, use of variances for...Ch. 7 - Direct manufacturing labor and direct materials...Ch. 7 - Direct materials efficiency, mix, and yield...Ch. 7 - Direct materials and manufacturing labor...Ch. 7 - Direct materials and manufacturing labor...Ch. 7 - Use of materials and manufacturing labor variances...Ch. 7 - Direct manufacturing labor variances: price,...Ch. 7 - Direct-cost and selling price variances. MicroDisk...Ch. 7 - Variances in the service sector. Derek Wilson...Ch. 7 - Prob. 7.47P
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
  • Text book image
    Managerial Accounting
    Accounting
    ISBN:9781337912020
    Author:Carl Warren, Ph.d. Cma William B. Tayler
    Publisher:South-Western College Pub
Text book image
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Responsibility Accounting| Responsibility Centers and Segments| US CMA Part 1| US CMA course; Master Budget and Responsibility Accounting-Intro to Managerial Accounting- Su. 2013-Prof. Gershberg; Author: Mera Skill; Rutgers Accounting Web;https://www.youtube.com/watch?v=SYQ4u1BP24g;License: Standard YouTube License, CC-BY