MANAGERIAL ACCOUNTING FOR MANAGERS
5th Edition
ISBN: 9781264196456
Author: Noreen
Publisher: MCG
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Question
Chapter 9, Problem 9.15E
1.
To determine
Prepare production department’s planning budget.
Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.
1.
Expert Solution
Answer to Problem 9.15E
The production department’s planning budget is
Explanation of Solution
Prepare production department’s planning budget
| Particulars | Amount |
| Budget labor hours | |
| Direct labor | |
| Indirect labor | |
| Utilities | |
| Supplies | |
| Equipment depreciation | |
| Factory rent | |
| Property taxes | |
| Factory administration | |
| Total expenses |
2.
To determine
Prepare production department’s flexible budget.
Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.
2.
Expert Solution
Answer to Problem 9.15E
The production department’s flexible budget is
Explanation of Solution
Prepare production department’s flexible budget
| Particulars | Amount |
| Actual labor hours | |
| Direct labor | |
| Indirect labor | |
| Utilities | |
| Supplies | |
| Equipment depreciation | |
| Factory rent | |
| Property taxes | |
| Factory administration | |
| Total expenses |
3.
To determine
Prepare production department’s flexible budget performance report, including both spending and activity variances.
Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.
3.
Expert Solution
Answer to Problem 9.15E
The production department’s flexible budget performance report shows the net revenue and spending variances is
Explanation of Solution
Prepare flexible budget performance report.
| Particulars | Actual results | Spending variances | Flexible budget | Activity variances | Planning budget |
| Labor hours | |||||
| Direct labor | |||||
| Indirect labor | |||||
| Utilities | |||||
| Supplies | |||||
| Equipment depreciation | |||||
| Factory rent | |||||
| Property taxes | |||||
| Factory administration | |||||
| Total expenses |
4.
To determine
Aspects of flexible which should be brought to management’s attention.
Introduction: Variance means the difference in value which comes when actual figure and estimated or budgeted figure are compared. It is helpful in finding out the cause of difference that arises between figures and formulates the corrective measure, which helps to reduce all those difficulties.
4.
Expert Solution
Answer to Problem 9.15E
The unfavorable activity variance is
Explanation of Solution
The computation of unfavorable activity variance is
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Chapter 9 Solutions
MANAGERIAL ACCOUNTING FOR MANAGERS
Ch. 9 - Prob. 9.1QCh. 9 - Prob. 9.2QCh. 9 - Prob. 9.3QCh. 9 - Prob. 9.4QCh. 9 - Prob. 9.5QCh. 9 - Prob. 9.6QCh. 9 - Prob. 9.7QCh. 9 - Prob. 9.8QCh. 9 - Prob. 9.9QCh. 9 - Prob. 9.10Q
Ch. 9 - Prob. 9.11QCh. 9 - Prob. 1TF15Ch. 9 - Prob. 9.1ECh. 9 - Prob. 9.2ECh. 9 - Prob. 9.3ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.18ECh. 9 - Prob. 9.19PCh. 9 - Prob. 9.20PCh. 9 - Prob. 9.21PCh. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Prob. 9.24PCh. 9 - Prob. 9.25PCh. 9 - Prob. 9.26PCh. 9 - Prob. 9.27CCh. 9 - Prob. 9.28CCh. 9 - Prob. 9.29C
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