Whether flexible budget materials variance is based on the actual volume of activity or planned volume of activity

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Answer 1

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 8, Problem 24PSA

a)

To determine

Whether flexible budget materials variance is based on the actual volume of activity or planned volume of activity

b)

To determine

Determine the actual price of cup of concentrate

c)

To determine

Determine the standard quantity to produce the containers

d)

To determine

Calculate the materials price variance and identify whether it is unfavorable or favorable.

e)

To determine

Compute the materials usage variance and identify whether it is unfavorable or favorable.

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LUKE CO's warehouse was severely damaged by flashflood on June 15, 2023. In the process of gathering the available information to file the insurance claim, LUKE was able to summarize the following: -The last physical inventory was taken on December 31, 2022 and actual count report showed P220,000. -Accounts payable amounted to P109,000 on January 1, 2023 and P126,000 at the time of the flashflood. -Tracing of bank statements showed that payments made to vendors and collections from customers aggregated P641,000 and P875,000, respectively, from January 1, 2023 up to the date of the flashflood. -All sales are on account and outstanding balance of accounts receivables amouted to P135,700 as at January 1, 2023, and P107,000 on June 15, 2023. -All inventory items are sold approximately 30% in excess of cost. -As at June 15, 2023, the cost of inventories that were salvaged and not destroyed amounted to P144,000. How much is the amount of inventory loss as a result of the flashflood?…

What was the investor's rate of return on these financial accounting question?

Answer 2

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 8, Problem 24PSA

a)

To determine

Whether flexible budget materials variance is based on the actual volume of activity or planned volume of activity

b)

To determine

Determine the actual price of cup of concentrate

c)

To determine

Determine the standard quantity to produce the containers

d)

To determine

Calculate the materials price variance and identify whether it is unfavorable or favorable.

e)

To determine

Compute the materials usage variance and identify whether it is unfavorable or favorable.

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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 8, Problem 24PSA

a)

To determine

Whether flexible budget materials variance is based on the actual volume of activity or planned volume of activity

b)

To determine

Determine the actual price of cup of concentrate

c)

To determine

Determine the standard quantity to produce the containers

d)

To determine

Calculate the materials price variance and identify whether it is unfavorable or favorable.

e)

To determine

Compute the materials usage variance and identify whether it is unfavorable or favorable.

Expert Solution & Answer

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Check out a sample textbook solution

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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 8, Problem 24PSA

a)

To determine

Whether flexible budget materials variance is based on the actual volume of activity or planned volume of activity

b)

To determine

Determine the actual price of cup of concentrate

c)

To determine

Determine the standard quantity to produce the containers

d)

To determine

Calculate the materials price variance and identify whether it is unfavorable or favorable.

e)

To determine

Compute the materials usage variance and identify whether it is unfavorable or favorable.

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Answer 5

Chapter 8, Problem 24PSA

a)

To determine

Whether flexible budget materials variance is based on the actual volume of activity or planned volume of activity

b)

To determine

Determine the actual price of cup of concentrate

c)

To determine

Determine the standard quantity to produce the containers

d)

To determine

Calculate the materials price variance and identify whether it is unfavorable or favorable.

e)

To determine

Compute the materials usage variance and identify whether it is unfavorable or favorable.

Answer 6

Chapter 8, Problem 24PSA

a)

To determine

Whether flexible budget materials variance is based on the actual volume of activity or planned volume of activity

Answer 7

Chapter 8, Problem 24PSA

a)

To determine

Whether flexible budget materials variance is based on the actual volume of activity or planned volume of activity

Answer 8

b)

To determine

Determine the actual price of cup of concentrate

Answer 9

b)

To determine

Determine the actual price of cup of concentrate

Answer 10

c)

To determine

Determine the standard quantity to produce the containers

Answer 11

c)

To determine

Determine the standard quantity to produce the containers

Answer 12

d)

To determine

Calculate the materials price variance and identify whether it is unfavorable or favorable.

Answer 13

d)

To determine

Calculate the materials price variance and identify whether it is unfavorable or favorable.

Answer 14

e)

To determine

Compute the materials usage variance and identify whether it is unfavorable or favorable.

Answer 15

e)

To determine

Compute the materials usage variance and identify whether it is unfavorable or favorable.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 8 - Prob. 1LO Ch. 8 - Prob. 2LO Ch. 8 - Prob. 3LO Ch. 8 - Prob. 4LO Ch. 8 - Prob. 5LO Ch. 8 - Prob. 6LO Ch. 8 - Prob. 1Q Ch. 8 - Prob. 2Q Ch. 8 - Prob. 3Q Ch. 8 - Prob. 4Q

Whether flexible budget materials variance is based on the actual volume of activity or planned volume of activity

Whether flexible budget materials variance is based on the actual volume of activity or planned volume of activity

Determine the actual price of cup of concentrate

Determine the standard quantity to produce the containers

Calculate the materials price variance and identify whether it is unfavorable or favorable.

Compute the materials usage variance and identify whether it is unfavorable or favorable.

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Chapter 8 Solutions