Payable is a batch level activities Static Budget 1000000 $2,90 $100000 Activities Number of deliveries Batch size interm of deliveries Variable cost per batch Fixed O.H cost 1. Flexible Budget variance 2. Spending variance for var. 3. Efficiency variance for var. Actual 948000 4,466 2,80 $90000
Q: 12. What amount in profit or loss should be recognized in 2021 as a result of the reclassification?
A: Gain or loss due to the changes in the accounting method of recording the investment depends upon…
Q: RPI, Inc. Balance Sheets for 12/31/02 and 12/31/03 2002 $16,000 7,000 42,000 50,000 1,200 $116,200…
A: Financial statement analysis is done to analyze the overall performance of a business entity.
Q: A corporation issues 7 500 shares of capital share as a dividend in an effort to reduce retained…
A: The stock dividend is a method of capitalizing on retained earnings. It is issued to the existing…
Q: Which of the following statements is NOT true? OSmall banks typically focus on the retail side O…
A: There are various types of banks in any economy, the broad classification can be specified as :…
Q: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate…
A: Relevant cost of a product is the cost which is specifically incurred for the product. Variable cost…
Q: )What are the motivations behind DeFi?
A: Q-1 ) (c) 1,2,3and 4 Q-2) (b) 1,2,and 3
Q: Harry sells hats in his shop and at the end of the financial year he is is required to do a…
A: Introduction: Income tax is a type of tax levied by governments on the earnings of enterprises and…
Q: 4. You wish to hire Ricky to manage your Dallas operations. The profits from the operations depend…
A: Opportunity Cost- Opportunity costs are the costs that people overlook or overlook when making…
Q: Revenue Expenses Cost of merchandise sold. Selling general, admin. expenses Other expenses Total…
A: Formula used: Change in Amount = year 2 value - year 1 value
Q: From the following balances of Jamal Plc., as at 31.12.21 Prepare Financial statement.…
A: Financial statements mainly consist of two statements namely, the income statement and balance…
Q: Mr kunal is employed in a company at banglore. Calculate his income salary if you are given the…
A:
Q: [The following information applies to the questions displayed below.] The following information is…
A: Raw material inventory is the goods available with the entity in raw form. These are usually used by…
Q: Under IFRS 9, the cumulative balance of equity as a result of measuring financial assets at fair…
A: The equity account represents the changes in the equity shareholders of the company. The treasury…
Q: The Arcade Company entered into a 10 year lease under which it made payments of R26 720 annually in…
A: As per IFRS 16, the single lease payment for the land and building should be allocated in the ratio…
Q: Following are the given figures: Opening Stock Rs. 30,000, Carriage On Sales Rs. 3,000; Closing…
A: The gross profit is calculated by deducting the cost of goods sold from the operating revenue of the…
Q: On the statement of cash flows, the cash flows from financing activities section would include all…
A: A cash flow statement is a financial statement that indicates cash inflow and cash outflow…
Q: Abbie Marson is the sole owner and operator of Great Plains Company. As of the end of its accounting…
A: The balance sheet shows the financial position of the company. It includes the assets, liabilities,…
Q: Problem 3 National Supply's shareholders' equity included the following accounts at December 31,…
A: Retired shares can't be reissued because they wil not have any value after retirement. Please…
Q: e following
A: 1. B should proceed with merger
Q: Honest Tea, Inc. is a merchandiser. Use the following information to its Inventory balance on its…
A: From the given information, the ending inventory can be computed from the formula of Cost of Goods…
Q: Karen Company reported net incomes for a three-year period as follows: 2019, $191,800; 2020,…
A: When ending inventory is overstated , it will result in over statement of net profit , therefore to…
Q: Lewis Co. recently hired a new accountant with very limited experience in corporate accounting.…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Reasons for the need for corporate governance codes
A: Introduction: Good corporate governance guarantees that the board of administrators meets on an…
Q: Factory Overhead Application. St. Louis Sounds Inc. manufactures audio equipment. The company…
A: Overhead application rate = Overhead cost Number of hours worked
Q: On 1 July 2020, Sugar Ltd acquired 89% of the shares of Glider Ltd for $690,000. At this date, the…
A: Given : On July 1 2020, Sugar ltd acquired 89% of the shares of the Gliders ltd for Pre Acquisition…
Q: Net income after taxes Income Tax Interest Expense Net Sales P18,000 12,000 80,000 620,000
A: To Calculate the Times interest earned formulas to be used: Times interest earned = Earnings before…
Q: Robert sold used cars, but he had little or no knowledge with respect to technical aspects of any of…
A: Introduction: It is basic business sincerity to be fully aware of all aspects of a product when…
Q: Classify the following costs as either production or non-production Depreciation of plant…
A: Production Cost: It is classified as a cost that is related to the production of goods. These cost…
Q: erican Rare Coins (ARC) was formed on January 1, 2018. Additional data for the year follow: (Click…
A:
Q: Accounts Balances Equipment $16,000 Accounts payable 1,000 23,000 Salaries expense Common stock Land…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: Cash dividends, property dividends, and scrip dividends are examples of dividends that_ Select one:…
A: Retained Earnings - Retained Earnings is the company's accumulated earnings that is retained by the…
Q: 3. On June 1, 2020, Company AAA has 10 units of inventory with a unit cost of $5. The company…
A: LIFO stands for Last in first out. Using this method, the units purchased at last are to be sold…
Q: The prepaid insurance account had a beginning balance of $11,500 and was debited for $18,000 of…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: National company acquired a machine on January 01, 2005 at a list price of Rs. 565, 000 with a trade…
A: Routine transactions, such as client charges and supplier invoicing, should not be recorded using…
Q: What will be the final balance at the end of year 23 if you make a deposit of 88,000 at the end of…
A: Future values refer to the concept of determining the future worth of current money deposits.
Q: The Alice Brittain Estate, valued at $14.8 million, includes the following assets: A joint and last…
A: The value of the property of a deceased person including assets owned by him is known as the gross…
Q: Excel: What does the "subtotal" function accomplish and how do I use it?
A: Subtotal function: This function enables to arrive at the subtotal in a list or a database This…
Q: (Treatment of goodwill) A, B and C were partners sharing profit & in the ratio of 4:3:3. B dies and…
A: A partnership is an agreement where two or more individuals come together to run a business in…
Q: On December 31, 2021, Glimmer Company had outstanding P3,000,000 8% convertible bonds that mature on…
A: Requirement: conversion of bond into ordinary shares and asked to calculate share premium as a…
Q: Current Year Previous Year Accounts payable $67,712 $52,900 Long-term debt 30,966 39,700 Based on…
A: Formula used: Amount of change = Current year - Previous year Deduction of previous year value from…
Q: Assume that debt service expenditures are $12.6 million and "own source" revenues are $84 million.…
A: Debt service revenue ratio = Debt service / revenue
Q: Partner Ibrahim sold its share in equity of 80,000 SR in the partnership to a new partner Rana…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: A. Ronel is a broker who earns a commission of 3½% of all securities sales that he makes. For the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: When financial statements of an associate used in applying the equity method are prepared as at the…
A: The associate means an organization in which the investor has a great interest but he has no control…
Q: OSE Corporation's articles of incorporation provides for the issuance of 100,000 ordinary shares.…
A: The dividend is the distribution of the portion of profit earned by the company. The dividend is…
Q: Merchandising companies have financial statements that are more complex than manufacturing…
A: Merchandising companies are companies engaged in buying and selling goods. Manufacturing companies…
Q: Which of the following funds is used to account for government sponsored investment pools that…
A: An Investment Trust Fund is a fund that develops when the government sponsors a multi-government…
Q: Production costs incurred in the manufacture of 2,400 units of a product in a period are: $ Direct…
A: Cost of manufacturing means the costs incurred directly or indirectly related to the production of a…
Q: Identify which company’s shares you would recommend as the better investment. Provide explanations.…
A: Ratio Analysis: It is the analyze of Company's financial and trend of the company's results to…
Q: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $20,800 Inventory 72,000 Accounts payable 20,700…
A: Introduction: Cash flows from operating activities: Cash transactions of receipts and payments of…
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Step by step
Solved in 4 steps with 2 images
- Compute the sales variances (total, price and volume) from the following figures: Budgete Budgeted Price per Unit Actua Produ Actual Priceper unit (') ct d quantit quantit y y P 400 25 480 30 300 50 280 45 R 200 75 240 70 100 10 800 1051. Prepare a Level 2 Variance Analysis and answer the following questions. Actual Results Static Budget 1,020 units 1,000 units Units Revenues Total Var Cost Total Contr Margin Fixed Cost a. b. asup C. d. e. f. 100 woll $110,160 $ 74,460 $100,000 $ 70,000 Iban Mato Xmaldor $ 19,600 Operating Income $ 16,100 $ 10,000 shot Describe precisely the meaning of the following variances from this Performance Report: Flexible Budget Variance for Revenues palodi sat osup a'lood pl BV smi vispicyng pors $ 20,000 Flexible Budget Variance for Tot Variable Cost Flexible Budget Variance for Fixed Cost Sales Volume Variance for Revenues Sales Volume Variance for Tot Variable Cost Sales Volume Variance for Fixed Cost Bx Thomas Co. provides the following fixed budget data for the year: Sales (20,000 units) Cost of sales: Direct materials Direct labor Variable overhead Fixed overhead Gross profit Operating expenses: Fixed Variable Income from operations The company's actual activity for the Sales (21,000 units) Cost of goods sold: Direct materials Direct labor Variable overhead Fixed overhead Gross profit Operating expenses: Fixed Variable Income from operations F3 $200,000 160.000 60,000 80,000 $ 12,000 40.000 year follows: $231.000 168,000 73.500 77.500 12.000 39.500 F6 $600,000 500,000 $100,000 52.000 $ 48,000 $651,000 550.000 $101.000 51.500 $49.500 F7 F8
- Variance Industries, Ltd. creates problems for accounting students. At the end of the first quarter of 2021, you have been asked to prepare a variance analysis of the company's operations for the quarter recently ended. You have gathered the data below from the company's accounts and the static budget prepared in December 2020. Variable and fixed manufacturing overhead are allocated based on direct- labour dollars. Units manufactured and sold Sales revenue Variable costs Direct materials Direct labour Variable manufacturing overhead Total variable costs Contribution margin Fixed manufacturing overhead Operating income (loss) Actual results Static budget 10,000 12,000 $320,000 $50,000 125,000 29,000 204,000 116,000 73,000 43,000 $360,000 $60,000 120,000 24,000 204,000 156,000 72,000 84,000the budgeted direct labor cost per unit of Product T is closest to: 9.10 10.50 7.00 15.75Calculate the value of A. Enter Favourable variances as a positive number and Unfavourable variances as a negative number. 1 2 Units 3 4 Less: Total Variable Costs 5 Direct Materials Revenues 6 Direct Labour 7 Variable Manuf. OH. 8 Total Variable Costs 9 Total Contribution Margin 10 Total Fixed Costs 11 Operating Income $ B Static 120,000 C Actual $ D Flex Budget 80,000 E Flex Budget Variance $70,000 F $20,000 U $20,000 U
- The level 2 variance analysis table is shown here: Actual Results Flexible Variances Flexible Budget Volume Variances Sales-Static Units sold Sales Variable costs Contribution margin Fixed costs Operating income When complete the table values for E and F are O $76,000 U and $220,000 U 46,000 $2,760,000 1,564,000 $1,196,000 627,000 44,000 $2,475,000 1,540,000 $900,000 660,000 $240,000 A B. D. G $309,000 F Y and O $276,000 U and $20,000 U O $76,000 F and $220,000 F $276,000 Fand $20,000 F O O OFlexible Sales Actual Flexible Master Budget Activity Results Budget Budget Variance Variance Units 10,000 ? 2,700 Sales revenue ? 10,000 F ? ? Less: 87,100 90,300 ? 98,000 Contribution margin 51,300 ? ? 6,700 What is the sales revenue in the flexible budget? Hint: Use your variances to find missing numbers and back into an answerCan you help me interpret these results i)Revenue Variance, Price, and Volume Variance Revenue variance = Actual revenues – Static revenues = $2,200,000 - $1,9800,000 = $220,000 Price variance = Actual revenues – Flexible revenues =$2,2000,000 - $2,200,000 =$0 Volume variance = Flexible revenues – Static revenues =$2,200,000 - $1,980,000 = $220,000 ii) Cost Variance, Volume Variance and Management Variance Cost variance = Static cost - Actual cost =$1,350,000 -$1,625,000 = $-275,000 Volume = Static cost – Flexible costs = $1,350,000 - =$1,475,000 = $-125,000 Management variance = Flexible cost- Actual cost =$2,200,000 - 1,625,000 =$575,000 iii) Profit Variance Profit Variance= Actual Profit - Static Profit = 225,000 - 130,000 = 95,000 Revenue Variance = Actual Revenue - Static Revenue = 2, 200,000 - 1,980,000 = 220,000 Cost Variance = Static Cost - Actual Costs = 1,850,000 - 1,975,000 = (125,000) Can you help me interpret these results
- Q1Prepare the production budget in units. Q. Use the production budget to: a. Find the budgeted number of setups and setup-hours and the allocation rate for setup costs. b. Find the budgeted total machine-hours and the allocation rate for processing costs. c. Find the budgeted total units produced and the allocation rate for inspection costs.Actual price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Actual fixed costs Manufacturing overhead Selling, general, and administrative Required $ 35.20 8.90 4.00 6.25 6.00 $ 117,000 52,000 a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Sales revenue Variable manufacturing costs Materials Labor Overhead Selling, general, and administrative costs Contribution margin Fixed costs Manufacturing overhead Selling, general, and administrative costs Net income Flexible Budget VariancesBudgeted sales OMR 60000; Actual sales OMR 75000; then the variance will be: O a. OMR 15000 Unfavorable of O b. OMR 15000 Favorable O C. Some other answer O d. OMR 60000 Favorable page