Planning budget It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours. To prepare: A planning budget for the production department.

Question

Want to see the full answer?

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 9, Problem 16E

1

To determine

Planning budget

It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours.

To prepare: A planning budget for the production department.

2

To determine

Flexible budget

Flexible budget is a budget that changes as per the changes in the volumes. It is considered as more useful than the static budget. It shows variable cost and fixed cost incurred by a company separately and shows the total amount of expenses. It considers the actual hours rather than standard hours.

To prepare: A flexible budget for the month march.

3

To determine

Spending variance

A spending variance shows the difference between the budgeted or expected expenses and actual expenses. It is either favorable for the company or unfavorable.

To calculate: Amount of spending variance by comparing actual and standard cost.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Financial Accounting Question please answer

How much of every retail sales dollar is made up of merchandise cost on these general accounting question?

The company where Daniel works produces skateboards locally but sells them globally for $60 each. Daniel is one of the production managers in a meeting to discuss preliminary results from the year just ended. Here is the information they had in front of them: Standard Quantity per Unit Standard Price Wood 2.50 feet $4.00 per foot Wheels 5.00 wheels $0.50 per wheel Direct labor 0.30 hours $14.00 per hour Actual results: . • Quantity of wood purchased, 225,000 feet; quantity of wood used, 220,000 feet. Quantity of wheels purchased, 418,800 wheels; quantity of wheels used, 400,800 wheels. Actual cost of the wood, $4.20 per foot. Actual cost of the wheels, $0.55 per wheel. • Quantity of DL hours used, 26,400 hours; actual cost of DL hours, $15.20 per hour. Actual units produced, 80,000 skateboards. (a) Complete a variance analysis for DM (both wood and wheels) and DL, determining the price and efficiency variances for each; be sure to specify the amount and sign of each variance. DM- Wood…

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 9, Problem 16E

1

To determine

Planning budget

It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours.

To prepare: A planning budget for the production department.

2

To determine

Flexible budget

Flexible budget is a budget that changes as per the changes in the volumes. It is considered as more useful than the static budget. It shows variable cost and fixed cost incurred by a company separately and shows the total amount of expenses. It considers the actual hours rather than standard hours.

To prepare: A flexible budget for the month march.

3

To determine

Spending variance

A spending variance shows the difference between the budgeted or expected expenses and actual expenses. It is either favorable for the company or unfavorable.

To calculate: Amount of spending variance by comparing actual and standard cost.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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 9, Problem 16E

1

To determine

Planning budget

It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours.

To prepare: A planning budget for the production department.

2

To determine

Flexible budget

Flexible budget is a budget that changes as per the changes in the volumes. It is considered as more useful than the static budget. It shows variable cost and fixed cost incurred by a company separately and shows the total amount of expenses. It considers the actual hours rather than standard hours.

To prepare: A flexible budget for the month march.

3

To determine

Spending variance

A spending variance shows the difference between the budgeted or expected expenses and actual expenses. It is either favorable for the company or unfavorable.

To calculate: Amount of spending variance by comparing actual and standard cost.

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 9, Problem 16E

1

To determine

Planning budget

It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours.

To prepare: A planning budget for the production department.

2

To determine

Flexible budget

Flexible budget is a budget that changes as per the changes in the volumes. It is considered as more useful than the static budget. It shows variable cost and fixed cost incurred by a company separately and shows the total amount of expenses. It considers the actual hours rather than standard hours.

To prepare: A flexible budget for the month march.

3

To determine

Spending variance

A spending variance shows the difference between the budgeted or expected expenses and actual expenses. It is either favorable for the company or unfavorable.

To calculate: Amount of spending variance by comparing actual and standard cost.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 16E

1

To determine

Planning budget

It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours.

To prepare: A planning budget for the production department.

2

To determine

Flexible budget

Flexible budget is a budget that changes as per the changes in the volumes. It is considered as more useful than the static budget. It shows variable cost and fixed cost incurred by a company separately and shows the total amount of expenses. It considers the actual hours rather than standard hours.

To prepare: A flexible budget for the month march.

3

To determine

Spending variance

A spending variance shows the difference between the budgeted or expected expenses and actual expenses. It is either favorable for the company or unfavorable.

To calculate: Amount of spending variance by comparing actual and standard cost.

Answer 6

Chapter 9, Problem 16E

1

To determine

Planning budget

It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours.

To prepare: A planning budget for the production department.

Answer 7

Chapter 9, Problem 16E

1

To determine

Planning budget

It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours.

To prepare: A planning budget for the production department.

Answer 8

2

To determine

Flexible budget

Flexible budget is a budget that changes as per the changes in the volumes. It is considered as more useful than the static budget. It shows variable cost and fixed cost incurred by a company separately and shows the total amount of expenses. It considers the actual hours rather than standard hours.

To prepare: A flexible budget for the month march.

Answer 9

2

To determine

Flexible budget

Flexible budget is a budget that changes as per the changes in the volumes. It is considered as more useful than the static budget. It shows variable cost and fixed cost incurred by a company separately and shows the total amount of expenses. It considers the actual hours rather than standard hours.

To prepare: A flexible budget for the month march.

Answer 10

3

To determine

Spending variance

A spending variance shows the difference between the budgeted or expected expenses and actual expenses. It is either favorable for the company or unfavorable.

To calculate: Amount of spending variance by comparing actual and standard cost.

Answer 11

3

To determine

Spending variance

A spending variance shows the difference between the budgeted or expected expenses and actual expenses. It is either favorable for the company or unfavorable.

To calculate: Amount of spending variance by comparing actual and standard cost.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 9.A - Fixed Overhead Variances Primara Corporation has a...Ch. 9.A - Predetermined Overhead Rate: Overhead Variances...Ch. 9.A - Applying Overhead in a Standard Costing System...Ch. 9.A - Prob. 4E Ch. 9.A - Using Fixed Overhead Variances The standard cost...Ch. 9.A - Prob. 6E Ch. 9.A - Relations Among Fixed Overhead Variances Selected...Ch. 9.A - Applying Overhead; Overhead Variances Lane Company...Ch. 9.A - Applying Overhead; Overhead Variances Chilczuk....Ch. 9.A - Comprehensive Standard Cost Variances "Wonderful!...

Planning budget It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours. To prepare: A planning budget for the production department.

Solution Summary: The author explains planning budget, which is prepared by using estimated data and estimated hours. Flexible budget uses actual hours instead of budgeted or planned hours and shows the total amount of expenses.

Concept explainers

Videos

Planning budget

It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours.

To prepare: A planning budget for the production department.

Spending variance

A spending variance shows the difference between the budgeted or expected expenses and actual expenses. It is either favorable for the company or unfavorable.

To calculate: Amount of spending variance by comparing actual and standard cost.

Want to see the full answer?

Chapter 9 Solutions

Planning budget It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours. To prepare: A planning budget for the production department.

Solution Summary: The author explains planning budget, which is prepared by using estimated data and estimated hours. Flexible budget uses actual hours instead of budgeted or planned hours and shows the total amount of expenses.

Concept explainers

Videos

Planning budget It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours. To prepare: A planning budget for the production department.

Spending variance A spending variance shows the difference between the budgeted or expected expenses and actual expenses. It is either favorable for the company or unfavorable. To calculate: Amount of spending variance by comparing actual and standard cost.

Want to see the full answer?

Chapter 9 Solutions

Planning budget

It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours.

To prepare: A planning budget for the production department.

Spending variance

A spending variance shows the difference between the budgeted or expected expenses and actual expenses. It is either favorable for the company or unfavorable.

To calculate: Amount of spending variance by comparing actual and standard cost.