Study4smart Quality review Materials ch24 Student: 1. Standard costs can serve as a basis for evaluating actual performance. True False 2. Standard material‚ labor‚ and overhead costs can be obtained from standard cost tables published by the Institute of Management Accountants. True False 3. Standard costs provide a basis for assessing the reasonableness of actual costs incurred for producing a product or service. True False 4. When standard costs are used‚ factory overhead
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ROSFE CORLAE D. BADUY Submitted by: ADRIAN ERWIN M. PEGASON ERWIN S. FLORES BETA COMPANY Beta Company produces two products‚ A and B‚ each of which uses materials X and Y. The following unit standard costs apply: | |Material X |Material Y |Direct Labor | |Product A |4 lbs @ $15 |1 lb @ $9.50 |1/5 hr @ $18 | |Product
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* The static budget column in the contribution report is replaced with a flexible budget column. * The variances in the contribution report are recomputed as the difference between the flexible budget and actual columns. Answer Particulars | Static Budget | Flexible Budget | Actual | Variance | Unit (pounds) | 200000 | 225000 | 225000 | 0 | Revenue | 1600000 | 1800000 | 1777500 | 22500 U | Direct Material | 290000 | 326250 | 432500 | -106250 U | Direct Labor | 168000 | 189000
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Budget Management Analysis Budget Management Analysis A budget is a tool that helps managers to ensure that the required resources are obtained and used effectively and efficiently as the organization moves towards achievement of its objectives. A budget is stated in terms of money and is usually made for one year depending either on the prior year’s budget or on existing programs (Cleverly & Cameron‚ 2007‚ p. 330). Creating a working budget is a very difficult undertaking‚ and for the budget
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CHAPTER 7 FLEXIBLE BUDGETS‚ DIRECT-COST VARIANCES‚ AND MANAGEMENT CONTROL 7-1 Management by exception is the practice of concentrating on areas not operating as expected and giving less attention to areas operating as expected. Variance analysis helps managers identify areas not operating as expected. The larger the variance‚ the more likely an area is not operating as expected. 2. Two sources of information about budgeted amounts are (a) past amounts and (b) detailed engineering studies
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Chapters 9 & 10 Standard Costing‚ Variance Analysis and Flexible Budgets This is a copyright presentation of Darlene B. Serrato and is presented exclusively for the use and benefit of students enrolled in Accounting 2303. Any other use is prohibited. All rights reserved. This presentation may not be copied‚ reproduced or transferred in or by any media without the express written permission of the author. STANDARD – is the budgeted cost for one unit of product. The beginning point
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Analysis of total costs. 5) Build a Spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: the April 1 work in process costs were $27‚000 for direct material and $5‚000 for conversion. 1. | | Physical Units | | Work in process‚ April 1 | 10‚000 | | Units started during April | 100‚000 | | Total units to account for | 110‚000 |
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Exercise 8-3 Direct Materials Budget Three grams of musk oil are required for each bottle of Mink Caress‚ a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Year 2 Year 3 First Second Third Fourth First Budgeted production‚ in bottles 60‚000 90‚000 150‚000 100‚000 70‚000 Musk oil has become so popular as a perfume ingredient
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Exam II I. TRUE / FALSE 1. A budget generally includes both financial and nonfinancial aspects of the plan. 2. The revenues budget should be based on the production budget. 3. A favorable variance should be ignored by management. 4. The direct manufacturing labor price variance is likely to be unfavorable if lower-skilled workers are put on a job. 5. For fixed overhead costs‚ the flexible-budget amount is always the same as the static-budget amount. II. MULTIPLE CHOICE
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Q1. Using budget data‚ how many motors would have to be sold for Waltham Motors Division to break even? Answer Q1: Breakeven Fixed costs $260‚000.00 = ---------------------------------- = ---------------------- = 13‚326 units number of units Unit contribution margin $19.51 UCM (Unit Contribution margin) = USP (Unit Selling Price) UVC (Unit Variable Costs) = = $48.00 - $28.49 = $19.51 USP = Sales / Units sold = $864‚000.00/18‚000 =
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