Loose Leaf For Introduction To Managerial Accounting

8th Edition

ISBN: 9781260190175

Author: Brewer Professor, Peter C.; Garrison, Ray H; Noreen, Eric

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 9.A, Problem 11P

Comprehensive Standard Cost Variances

Flandro Company uses a standard cost system and sets its predetermined overhead rate on the basis of direct labor-hours. The following data are taken from the company's planning budget for the current year:

Chapter 9.A, Problem 11P, Comprehensive Standard Cost Variances Flandro Company uses a standard cost system and sets its , example 1
The standard cost card for the company's only product is given below:

Chapter 9.A, Problem 11P, Comprehensive Standard Cost Variances Flandro Company uses a standard cost system and sets its , example 2
During the year, the company produced 6.000 units of product and incurred the following actual results:

Chapter 9.A, Problem 11P, Comprehensive Standard Cost Variances Flandro Company uses a standard cost system and sets its , example 3

Required:

1. Create a new standard cost card that separates the variable manufacturing overhead per unit and the fixed manufacturing overhead per unit.
2. Compute the materials price and quantity variances. Also, compute the labor rate and efficiency variances.
3. Compute the variable overhead rate and efficiency variances. Also, compute the fixed overhead budget and volume variances.
What effect, if any, does the choice of a denominator activity level have on unit standard costs? Is the volume variance a controllable variance from a spending point of view? Explain.

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.

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Chapter 9.A, Problem 10P

Chapter 9.A, Problem 12P

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Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

Chapter 9 Solutions

Loose Leaf For Introduction To Managerial Accounting

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!...

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