ACC 307: Cost Accounting
Different management levels in Bates, Inc., require varying degrees of managerial accounting information. Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows:
Budgeted output units
Budgeted fixed manufacturing overhead
Budgeted variable manufacturing overhead
per direct labor hour
Budgeted direct manufacturing labor hours
hours per unit
Fixed manufacturing costs incurred
Direct manufacturing labor hours used
Variable manufacturing costs incurred
Actual units manufactured
Compute a 4-variance analysis for the plant controller.
Compute a 3-variance analysis for the plant manager.
Compute a 2-variance analysis for the corporate controller.
McKenna Company manufactured 1,000 units during April with a total overhead budget of $12,400. However, while manufacturing the 1,000 units the microcomputer that contained the month's cost information broke down. With the computer out of commission, the accountant has been unable to complete the variance analysis report. The information missing from the report is lettered in the following set of data:
Standard cost per unit: 0.4 labor hour at $4 per hour
Actual costs: $2,100 for 376 hours
Flexible budget: a
Total flexible-budget variance: b
Variable overhead spending variance: c
Variable overhead efficiency variance: d
Budgeted costs: e
Actual costs: f
Flexible-budget variance: $500 favorable
Compute the missing elements in the report represented by the lettered items.
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