Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 9, Problem 4MAD
A.
To determine
Ascertain the total budgeted cost to perform the three police activities.
B.
To determine
Ascertain the total actual cost to perform the three police activities.
C.
To determine
Ascertain the direct labor time variance.
D.
To determine
Provide the suggestion of the time variance.
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Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs.Rammazzotti, Inc., had the following budgeted data:
Unit sales for the year
26,000
Unit production for the year
26,000
Budgeted fixed overhead for the year:
Supervision
$ 800
Depreciation
2,000
Rent
100
Budgeted variable costs per unit:
Direct materials
$0.15
Direct labor
0.20
Supplies
0.02
Indirect labor
0.05
Power
0.02
The following actually occurred:
Actual unit sales for the year
24,000
Actual unit production for the year
28,000
Actual fixed overhead for the year:
Supervision
$ 850
Depreciation
2,000
Rent
100
Actual variable costs:
Direct materials
$3,500
Direct labor
4,900
Supplies
530
Indirect labor
1,250
Power
470
The total budgeted costs for the year were
a.$14,340.
b.$11,440.
c.$13,510.
d.$13,460.
Need answer
Buis Corporation, which makes landing gears, has provided the
following data for a recent month:
Budgeted production
1,200 gears
Standard machine hours per gear
Budgeted supplies cost
5.9 machine-hours
$6.50 per machine-hour
Actual production
Actual machine hours
Actual supplies cost (total)
1,300 gears
7,950 machine-hours
$ 49,742
Determine the rate and efficiency variances for the variable overhead
item supplies and indicate whether those variables are favorable or
unfavorable.
Yogi Company expects to produce 2,080 units in January which will
require 10,400 hours of direct labor and 2,210 units in February which
will require 11,050 hours of direct labor. Yogi budgets $9 per unit for
variable manufacturing overhead; $1,900 per month for depreciation;
and $75,320 per month for other fixed manufacturing overhead costs.
Prepare Yogi's manufacturing overhead budget for January and
February, including the predetermined overhead allocation rate using
direct labor hours as the allocation…
Chapter 9 Solutions
Managerial Accounting
Ch. 9 - What are the basic objectives in the use of...Ch. 9 - What is meant by reporting by the principle of...Ch. 9 - What are the two variances between the actual cost...Ch. 9 - The materials cost variance report for Nickols...Ch. 9 - A. What are the two variances between the actual...Ch. 9 - Prob. 6DQCh. 9 - Would the use of standards be appropriate in a...Ch. 9 - A. Describe the two variances between the actual...Ch. 9 - At the end of the period, the factory overhead...Ch. 9 - If variances are recorded in the accounts at the...
Ch. 9 - Direct materials variances Bellingham Company...Ch. 9 - Direct labor variances Bellingham Company produces...Ch. 9 - Factory overhead controllable variance Bellingham...Ch. 9 - Factory overhead volume variance Bellingham...Ch. 9 - Standard cost journal entries Bellingham Company...Ch. 9 - Prob. 6BECh. 9 - Crazy Delicious Inc. produces chocolate bars. The...Ch. 9 - Prob. 2ECh. 9 - Salisbury Bottle Company manufactures plastic...Ch. 9 - The following data relate to the direct materials...Ch. 9 - De Soto Inc. produces tablet computers. The...Ch. 9 - Standard direct materials cost per unit from...Ch. 9 - H.J. Heinz Company uses standards to control its...Ch. 9 - Direct labor variances The following data relate...Ch. 9 - Glacier Bicycle Company manufactures commuter...Ch. 9 - Ada Clothes Company produced 40,000 units during...Ch. 9 - Prob. 11ECh. 9 - Direct materials and direct labor variances At the...Ch. 9 - Flexible overhead budget Leno Manufacturing...Ch. 9 - Prob. 14ECh. 9 - Factory overhead cost variances The following data...Ch. 9 - Thomas Textiles Corporation began November with a...Ch. 9 - Prob. 17ECh. 9 - Factory overhead cost variance report Tannin...Ch. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Income statement indicating standard cost...Ch. 9 - Prob. 22ECh. 9 - Prob. 23ECh. 9 - Rosenberry Company computed the following revenue...Ch. 9 - Lowell Manufacturing Inc. has a normal selling...Ch. 9 - Shasta Fixture Company manufactures faucets in a...Ch. 9 - Flexible budgeting and variance analysis I Love My...Ch. 9 - Direct materials, direct labor, and factory...Ch. 9 - Factory overhead cost variance report Tiger...Ch. 9 - CodeHead Software Inc. does software development....Ch. 9 - Direct materials and direct labor variance...Ch. 9 - Flexible budgeting and variance analysis Im Really...Ch. 9 - Direct materials, direct labor, and factory...Ch. 9 - Factory overhead cost variance report Feeling...Ch. 9 - Prob. 5PBCh. 9 - Prob. 1COMPCh. 9 - Advent Software uses standards to manage the cost...Ch. 9 - Prob. 2MADCh. 9 - Prob. 3MADCh. 9 - Prob. 4MADCh. 9 - Ethics in action Dash Riprock is a cost analyst...Ch. 9 - Variance interpretation Vanadium Audio Inc. is a...Ch. 9 - MinnOil performs oil changes and other minor...Ch. 9 - Marten Company has a cost-benefit policy to...Ch. 9 - Prob. 3CMACh. 9 - JoyT Company manufactures Maxi Dolls for sale in...
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY