Subject; accounts Exercise 21-1 (Algo) Management by exception LO C1Resset Company had the following results for April's operations: Findicates favorable and U Indicates unfavorable. In applyingmanagement by exception, the company Investigates all variances of $400 or more.Direct materials price varianceDirect materials quantity varianceDirect labor rate varianceWhich variances will the company Investigate?Itema. Direct materials price varianceb. Direct materials quantity variancec. Direct labor rate varianced. Direct labor efficiency variancee. Overhead controllable variancef. Overhead volume varianceCost$ 1,100 F300 U250 UDirect labor efficiency varianceOverhead controllable varianceOverhead volume variance$ 600 F400 U750 F

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Description: Subject; accounts Exercise 21-1 (Algo) Management by exception LO C1Resset Company had the following results for April's operations: Findicates favorable and U Indicates unfavorable. In applyingmanagement by exception, the company Investigates all va

Variance arises when the actual costs for the company is different from the standard costs which…

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Which variances will the company Investigate? Item a. Direct materials price variance b. Direct materials quantity variance c. Direct labor rate variance d. Direct labor efficiency variance e. Overhead controllable variance f. Overhead volume variance Cost

Which variances will the company Investigate? Item a. Direct materials price variance b. Direct materials quantity variance c. Direct labor rate variance d. Direct labor efficiency variance e. Overhead controllable variance f. Overhead volume variance Cost

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 23E: (Appendix) Calculating factory overhead: three variances Using the data given in E8-17, calculate...

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Recompute the variances from the second Acme Inc. exercise using $0.0725 as the standard cost of the material and $14 as the standard labor cost per hour. How has your explanation of the variances changed?
Show transcribed image text 15.What activity variances would Adger report with respect to each of its expenses? (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.) [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers.
PART II — TRUE/FALSE Instructions: Designate whether each of the following statements is true or false by circling the T or F. TF 1.If actual costs are less than standard costs, the variance is favorable. TF 2.On an income statement prepared under a standard cost accounting system, cost of goods sold is stated at standard costs with variances disclosed separately. TF 3.An unfavorable labor quantity variance indicates the actual number of direct labor hours worked was greater than the number of direct labor hours that should have been worked for the output attained. TF 4.Both the book value and the disposal value of an existing asset are relevant in a retain or replace equipment decision. TF 5.A direct labor price standard is frequently called the direct labor efficiency standard. TF 6.The cash payback technique identifies the time period required to recover the cost of the capital investment…
2.2 Use the information provided below to calculate the following manufacturing variances for March2022. Note: Each answer must state whether the variance is favourable or unfavourable2.2.1 Labour rate variance 2.2.2 Labour efficiency variance 2.2.3 Variable overheads efficiency variance Variable overheads expenditure variance INFORMATIONNevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 perlabour hour.Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurredwas R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours.
1 S 3. Compute the variable manufacturing overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Book Variable overhead sponding variance S Variable overhead efficiency variance 1 U 1 F Print 4. Compute the fixed overhead budget and volume variances. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (I.e., zero variance).) Fixed overhead budget variance $ Fixed overhead volumne variance $ 1U 0 Nono
Fischer Fabrication reported the following information concerning its direct materials: Direct materials purchased (actual) Standard cost of materials purchased Standard price tires actual amount of materials used Actual production Standard direct materials costs per unit produced Assume that Fischer Fabrication had no beginning finished goods inventory and only produced one product. A count of inventory showed that 4,552 units remained in the warehouse. $ 378,300 $361,500 $ 333,500 56,900 units $6 Required: a. Assume Fischer writes off all variances to Cost of Goods Sold. Prepare the entries Fischer would make to record and close out the variances. b. Assume Fischer prorates all variances to the appropriate accounts. Prepare the entries Fischer would make to record and close out the variances. Complete this question by entering your answers in the tabs below. Required A Required B Assume Fischer writes off all variances to Cost of Goods Sold. Prepare the entries Fischer would make to…
2. Acme Inc. has the following information available: Actual price paid for material Standard price for material Actual quantity purchased and used in production Standard quantity for units produced Actual labor rate per hour Standard labor rate per hour Actual hours Standard hours for units produced A. Compute the material price and quantity, and the labor rate and B. C. D. E. unfavorable variances. $1.00 $0.90 100 90 15 $ $ 16 200 220 efficiency variances. Describe the possible causes for this combination of favorable and
1.3 REQUIRED Use the information provided below to calculate the following variances. In each case state whether the variance is favourable or unfavourable. 1.3.1 Material quantity variance 1.3.2 Labour efficiency variance 1.3.3 Variable manufacturing overheads expenditure variance INFORMATION Regal Ltd uses the standard costing system. The standards and actual information for May 2022 for the only product that it manufactures are as follows: Standards: Direct materials Direct labour Variable manufacturing overheads Normal production Actual information for May 2022: Direct materials used Direct labour Variable manufacturing overheads Production 4kg @ R7 per kg 5 hours @ R60 per hour R12 per labour hour 12 000 units per month 43 000kg @ R7.50 per kg 56 000 hours @ R58 per hour R649 600 11 000 units manufactured
Instructions: Designate whether each of the following statements is true or false by circling the T or F. TF 1.If actual costs are less than standard costs, the variance is favorable. TF 2.On an income statement prepared under a standard cost accounting system, cost of goods sold is stated at standard costs with variances disclosed separately. TF 3.An unfavorable labor quantity variance indicates the actual number of direct labor hours worked was greater than the number of direct labor hours that should have been worked for the output attained. TF 4.Both the book value and the disposal value of an existing asset are relevant in a retain or replace equipment decision. TF 5.A direct labor price standard is frequently called the direct labor efficiency standard. TF 6.The cash payback technique identifies the time period required to recover the cost of the capital investment from the annual cash…
Fritz Corp. manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows: Materials-1 Ib plastic @ $3.00 $ 3.00 Direct labor-1.6 hr @ $10.00. 16.00 Factory overhead. 4,45 Total. . $23.45 The charges to the manufacturing department for November, when 5,000 units were produced, follow: Materials-5,300 lb @ $3.00. $ 15,900 Direct labor-8,200 hr @ $9.80. 80,360 Factory overhead 23,815 Total. $120,075 The Purchasing department normally buys about the same quantity as is used in production during a month. In November, 5,500 Ib were purchased at a price of $2.90 per pound. Critical Thinking Problem REQUIRED: Calculate the following from standard costs for the data given, using the formulas in Determination of Variances on pages 421-422 and 424: 1. Materials quantity variance. 2. Materials purchase price variance (at time of purchase). 3. Labor efficiency variance. 4. Labor rate variance. 5. Give some reasons as to why both the…
Exercise 17-24 (Algo) Variable Cost Variances: Materials Purchased and Materials Used Are Not Equal (LO 17-2) The cost analyst for Sheffer Systems collected the following data concerning direct materials: Actual production Direct materials purchased (actual) Standard cost of materials purchased Standard direct materials costs per unit produced Standard price times actual amount of materials used. Direct Materials variance 37,100 units Required: Compute the direct materials cost variances. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Efficiency variance Total direct materials cost variance $ 718,500 723,300 17 648,200