15th Edition

ISBN: 9781259405303

Author: Garrison

Publisher: MCG

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In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for …

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on t…

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Textbook Question

Chapter 9, Problem 17E

EXERCISE 9-17 Flexible Budget Performance Report LO9-1, LO9-2, LO9-3, LO9-4
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

	Fixed Component per Month	Variable Component per Job	Actual Total for February
Revenue		$360	$18,950
Technician wages	$6,400		$6,450
Mobile lab operating expenses	$2,900	$35	$4,530
Office expenses	$2,600	$2	$3,050
Advertising expenses	$970		$995
Insurance	$1,680		$1,680
Miscellaneous expenses	$500	$3	$465

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $2,900 plus $35 per job. and the actual mobile lab operating expenses for February' w’ere $4,530. The company expected to work 50 jobs in February', but actually worked 52 jobs.

Required:

Using Exhibit 9-8 as your guide, prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activitv variances for February.

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Chapter 9, Problem 16E

Chapter 9, Problem 18E

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Chapter 9 Solutions

MANAGERIAL ACCT W/CONNECT >IC<

Ch. 9 - Prob. 1Q Ch. 9 - What is a flexible budget and how does it differ...Ch. 9 - Prob. 3Q Ch. 9 - Why is it difficult to interpret a difference...Ch. 9 - What is an activity variance and what does it...Ch. 9 - What is a revenue variance and what does it mean?Ch. 9 - 9-7 What is a spending variance and what does it...Ch. 9 - 9-8 What does a flexible budget performance report...Ch. 9 - How does a flexible budget based on two cost...Ch. 9 - 9-10 What assumption is implicitly made about cost...

Ch. 9 - 9-11 What assumption is implicitly made about cost...Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 2F15 Ch. 9 - Prob. 3F15 Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - L09-1, LO9-2, LO9-3 Adger Corporation is a...Ch. 9 - Prob. 8F15 Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 10F15 Ch. 9 - Prob. 11F15 Ch. 9 - Prob. 12F15 Ch. 9 - Prob. 13F15 Ch. 9 - Prob. 14F15 Ch. 9 - Prob. 15F15 Ch. 9 - Prob. 1E Ch. 9 - Prob. 2E Ch. 9 - EXERCISE 9-3 Revenue and Spending Variances...Ch. 9 - Prob. 4E Ch. 9 - Prob. 5E Ch. 9 - EXERCISE 9-6 Critique a Variance ReportLO9-6 The...Ch. 9 - Prob. 7E Ch. 9 - EXERCISE 9-8 Flexible Budgets and Activity...Ch. 9 - Fixed Cost...Ch. 9 - ...Ch. 9 - EXERCISE 9-11 Flexible Budget L09-1 Refer to the...Ch. 9 - EXERCISE 9-12 Activity Variances LO9-2 Refer to...Ch. 9 - ...Ch. 9 - EXERCISE 9-14 Prepare a Flexible Budget...Ch. 9 - Prob. 15E Ch. 9 - EXERCISE 9-16 Flexible Budgets and Revenue and...Ch. 9 - EXERCISE 9-17 Flexible Budget Performance Report...Ch. 9 - Prob. 18E Ch. 9 - Prob. 19P Ch. 9 - PROBLEM 9-20 Activity and Spending Variances...Ch. 9 - Prob. 21P Ch. 9 - Prob. 22P Ch. 9 - Prob. 23P Ch. 9 - PROBLEM 9-24 Critiquing a Report; Preparing a...Ch. 9 - PROBLEM 9-25 Critiquing a Variance Report;...Ch. 9 - Prob. 26C Ch. 9 - ...Ch. 9 - Prob. 28C

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