ACCTG 102 Lecture 8: Accounting 102 Managerial Ch 8 Lecture Notes

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greenlion442

26 Jul 2018

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Flexible budgets will change when you have a change in production. Performance report: you compare actual results to budgets results. Then calculate the differences and explain then. For our project its a static budget, like ch7. Direct labor budget is rate and hours. To calculate the variances you can use 8-10 p 363. P364 is important standard quantity allowed for actual output = actual output x standard quantity. Budget variance = actual fixed overhead - budgeted fixed overhead. Volume variance = budgeted fixed overhead - fixed overhead applied. Or easier is fixed component of predetermined overhead rate x (denominator of the predetermined overhead rate x standard hours allowed) 8-4: 168,000 using my math, materials price variance (ap-sp) x aq. 9000 favorable bc negative: materials quantity variance. 8-5: doesnt want this, labor rate variance. Calc dmv & dlv from info provided: down, materials price variance (ap-sp) x aq.

Related Questions

The following data were drawn from the records of StuartCorporation.


Planned volume for year (staticbudget)		4,100	units
Standard direct materials costper unit		3.00	pounds	@	$	1.60	per pound
Standard direct labor cost perunit		2.80	hours	@	$	4.50	per hour
Total expected fixed overheadcosts	$	15,580
Actual volume for the year(flexible budget)		4,300	units
Actual direct materials cost perunit		2.70	pounds	@	$	2.00	per pound
Actual direct labor cost perunit		3.20	hours	@	$	4.20	per hour
Total actual fixed overheadcosts	$	11,880

Required

Prepare a materials variance information table showing thestandard price, the actual price, the standard quantity, and theactual quantity.

Calculate the materials price and usage variances. Indicatewhether the variances are favorable (F) or unfavorable (U).

Prepare a labor variance information table showing the standardprice, the actual price, the standard hours, and the actualhours.

Calculate the labor price and usage variances. Indicate whetherthe variances are favorable (F) or unfavorable (U).

Calculate the predetermined overhead rate, assuming that Stuartuses the number of units as the allocation base.

Calculate the fixed cost spending variance. Indicate whether thevariance is favorable (F) or unfavorable (U).

Calculate the fixed cost volume variance. Indicate whether thevariance is favorable (F) or unfavorable (U).

Prepare a materials variance information table showing thestandard price, the actual price, the standard quantity, and theactual quantity. (Round "Standard price" and "Actual price" to 2decimal places.)

Materials Variance Information Table
Standardprice		perpound
Actualprice		perpound
Standardquantity for flexible budget		pounds
Actualquantity used		pounds

Calculate the materials price and usage variances. Indicatewhether the variances are favorable (F) or unfavorable (U). (Select"None" if there is no effect (i.e., zero variance).)


Materialprice variance
Materialusage variance

Prepare a labor variance information table showing the standardprice, the actual price, the standard hours, and the actual hours.(Round "Standard price" and "Actual price" to 2 decimalplaces.)

Labor Variance Information Table
Standardprice		perhour
Actualprice		perhour
Standardhours for flexible budget
Actualhours used

Calculate the labor price and usage variances. Indicate whetherthe variances are favorable (F) or unfavorable (U). (Select "None"if there is no effect (i.e., zero variance).)


Laborprice variance
Laborusage variance

Calculate the predetermined overhead rate, assuming that Stuartuses the number of units as the allocation base. Calculate thefixed cost spending variance and the fixed cost volume variance.Indicate whether the variance is favorable (F) or unfavorable (U).(Round "Predetermined overhead rate" answer to 2 decimal places.Select "None" if there is no effect (i.e., zero variance).)

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e.	Predetermined overhead rate	perunit
f.	Fixedcost spending variance
g.	Fixedcost volume variance

The standard cost card for the single product manufactured by Cutter, Inc., is given below:

Inputs	(1) Standard Quantity or Hours	(2) Standard Price or Rate			Standard Cost (1) Ã (2)
Direct materials	4.2 yards	$	5.00	per yard	$	21.00
Direct labor	0.8 hours	$	15.00	per hour		12.00
Variable overhead	0.8 hours	$	1.50	per hour		1.20
Fixed overhead	0.8 hours	$	5.00	per hour		4.00
Total standard cost per unit					$	38.20

Manufacturing overhead is applied to production on the basis of standard direct labor-hours. During the year, the company worked 8,760 hours and manufactured 10,700 units of product. Selected data relating to the companyâs fixed manufacturing overhead cost for the year are shown below:

Actual Fixed Overhead		Budgeted Fixed Overhead		Fixed Overhead Applied to Work in Process

$42,000		?		? hours Ã $? per hour = $?
	Budget variance, $?		Volume variance, $1,800 F

Required:

1. What were the standard hours allowed for the yearâs production?

2. What was the amount of budgeted fixed overhead cost for the year?

3. What was the fixed overhead budget variance for the year? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

4. What denominator activity level did the company use in setting the predetermined overhead rate for the year?

limellama64

Kansas Company uses a standard cost accounting system. In 2017, thecompany produced 27,600 units. Each unit took several pounds ofdirect materials and 1.6 standard hours of direct labor at astandard hourly rate of $12.00. Normal capacity was 50,300 directlabor hours. During the year, 130,200 pounds of raw materials werepurchased at $0.90 per pound. All materials purchased were usedduring the year.

If the materials price variance was $5,208 favorable, what wasthe standard materials price per pound? (Round answer to 2 decimalplaces, e.g. 2.75.)

Standard materials price per pound
$________

If the materials quantity variance was $13,423 unfavorable, whatwas the standard materials quantity per unit? (Round answer to 1decimal place, e.g. 1.5.)

Standard materials quantity per unit ______

What were the standard hours allowed for the unitsproduced?

Standard hours allowed____________

If the labor quantity variance was $4,800 unfavorable, what werethe actual direct labor hours worked?

Actual hours worked____________

If the labor price variance was $13,368 favorable, what was theactual rate per hour? (Round answer to 2 decimal places, e.g.2.75.)

Actual rate per hour $__________

If total budgeted manufacturing overhead was $367,190 at normalcapacity, what was the predetermined overhead rate? (Round answerto 2 decimal places, e.g. 2.75.)

Predetermined overhead rate $____________

What was the standard cost per unit of product? (Round answer to2 decimal places, e.g. 2.75.)

Standard cost per unit $___________

How much overhead was applied to production during theyear?

Overhead applied $__________

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ACCTG 102 Lecture 8: Accounting 102 Managerial Ch 8 Lecture Notes

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