MGT 5 Lecture Notes - Lecture 15: Transfer Pricing
28 Nov 2018
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Quiz thursday: cvp planning, transfer pricing, cash budgets. To have an unfavorable variance, you would need a dlhrs value of less than . 4. Find this by subtracting the fixed budget by the flexible budget. Find this by subtracting the actual by the actual and the standard (the flexible budget) Price is 3,969 unfavorable unfavorable because the cost per unit went up by 0. 7. Efficiency is 7,260 favorable (0. 4)(22) = 8. 8 = std dl$/unit (8. 8)(15,000) = 132,000. **get this number by taking the actual dlhrs and dividing it by the amount of units produced. Used 7,220 pounds (aq)(ap) vs (aq)(sp) focused on bought (8000)(11. 5) (8000)(12) Favorable because the standard price per unit was lower (aq)(sp) vs (sq)(sp) focused on used (7220)(12) (6650)(12) Unfavorable because you used more pounds than budgeted. - to find the sq: multiply the std pounds/unit by the units produced.
