ACC 406 Chapter Notes - Chapter 11: Stabilisation Force In Bosnia And Herzegovina, Management Accounting
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Related Questions
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The Platter Valley factory of Bybee Industries manufacturesfield boots. The cost of each boot includes direct materials,direct labor, and manufacturing overhead. The firm traces alldirect costs to products, and it assigns overhead based on directlabor hours. |
The company budgeted $10,120 variable overheadand 2,300 direct labor hours to manufacture 4,600 pairs of boots inMarch. |
The factory used 4,300 direct labor hours inMarch to manufacture 4,400 pairs of boots and spent $17,400 onvariable overhead during the month. |
For March thePlatter Valley factory of Bybee Industries budgeted $94,300 offixed overhead. Its practical capacity is 2,300 direct labor hoursper month (to manufacture 4,600 pairs of boots). |
The actual fixed overhead incurred for themonth was $97,900. |
Required: | |||||||||||||||||
1. | Compute the flexible-budget variance, the spending variance, andthe efficiency variance for variable overhead for March.
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Problem 16-51 Sales Activity Variance (LO 16-3)
Odessa, Inc., reports the following information concerningoperations for the most recent month:
Actual (based on actual of 540 units) | Master Budget (based on budgeted 600 units) | ||||||||||
Sales revenue | $ | 94,300 | $ | 102,000 | |||||||
Less | |||||||||||
Manufacturing costs | |||||||||||
Direct labor | 13,034 | 13,800 | |||||||||
Materials | 12,490 | 14,400 | |||||||||
Variable overhead | 7,850 | 9,600 | |||||||||
Marketing | 5,140 | 5,820 | |||||||||
Administrative | 4,200 | 4,200 | |||||||||
Total variable costs | $ | 42,714 | $ | 47,820 | |||||||
Contribution margin | $ | 51,586 | $ | 54,180 | |||||||
Fixed costs | |||||||||||
Manufacturing | 4,665 | 4,800 | |||||||||
Marketing | 9,984 | 9,600 | |||||||||
Administrative | 9,563 | 9,600 | |||||||||
Total fixed costs | $ | 24,212 | $ | 24,000 | |||||||
Operating profits | $ | 27,374 | $ | 30,180 | |||||||
There are no inventories.
Required:
Prepare a sales activity variance analysis for Odessa, Inc.(Do not round intermediate calculations. Indicate theeffect of each variance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select eitheroption.)
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Problem 16-64 Comprehensive Variance Problem (LO 16 - 5, 6)
The standard cost sheet for Chambers Company, which manufacturesone product, follows:
Direct materials, 40yards at $3.00 per yard | $ | 120 | |
Direct labor, 5 hours at $30 perhour | 150 | ||
Factory overhead applied at 70%of direct labor | 105 | ||
(variable costs = $70; fixedcosts = $35) | |||
Variable selling andadministrative | 74 | ||
Fixed selling andadministrative | 50 | ||
Total unit costs | $ | 499 | |
Standards have been computed based on a master budget activitylevel of 29,800 direct labor-hours per month. Actual activity forthe past month was as follows:
Materials used | 238,000 | yards at $3.15 peryard | |
Direct labor | 28,100 | hours at $31.00 per hour | |
Total factory overhead | $ | 650,000 | |
Production | 5,500 | units | |
Required:
Prepare variance analyses for the variable and fixed costs.Materials are purchased as they are used.(Do not round intermediate calculations.Indicate the effect of each variance by selecting "F" forfavorable, or "U" for unfavorable. If there is no effect, do notselect either option.)
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