of the higher price of Kaufmann’s finished goods equals to 52‚251.61 dollars for the price change of 3 dollars. The finished goods price changed from 90 dollars to 93 dollars. Question 2(a) Actual Direct labour cost =4‚813‚000 dollars Budgeted Direct Labour cost= 4‚400‚000 dollars Variance = Actual Direct labour cost - Budgeted Direct Labour cost =4‚813‚000 dollars - 4‚400‚000 dollars = 413‚000 dollars The variance is said to be unfavorable because the actual amount spent on direct labour is more
Premium Employment Direct material price variance Cost
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 = $48.00 UVC = Total variable costs / Units produced = $512‚800.00/18‚000 =$28.49 Conclusion: The company should produce‚
Premium Variable cost Fixed cost Costs
recover its market position. Standard costs are established and revised each period during the budgeting process. Standard costs are continually reviewed and periodically revised if significant changes occur in production methods or in the prices paid for material‚ labor‚ and overhead. The level of production output plays an important role in determining cost standards. For instance‚ grossly underutilized production facilities often experience varying degrees of cost inefficiency. Conversely‚ the stress
Premium Cost Variance Direct material price variance
Managerial Accounting Case ‘Waltham Motors Division’ Answer 1: Breakeven point If Waltham Motors Division sells 13‚326 units‚ it will breakeven. But why Waltham incurred net losses when it sold more than 13‚326 units in May? The unfavorable cost variances (see answer 2 and 3) and Waltham’s high operating leverage were major reasons for its financial problems. Waltham’s operating leverage is 3.85 times‚ which indicates that the operating income is very sensitive to changes in sales. Answer 2: Total
Premium Variable cost Costs Direct material price variance
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 | 174000 | 15000 F | Variable Overhead
Premium Management accounting Variable cost Contribution margin
1 Quarter 2 XQ- 103 20‚000 25‚000 XQ-104 12‚000 15‚000 No changes in selling prices are anticipated. Complete the sales budget for the 2 quarters ending June 30‚ 2010. List the products and show for each quarter and for the 6 months‚ units‚ selling price‚ and total sales by product and in total. ZELLER ELECTRONICS INC. Sales Budget For the Six Months Ending June 30‚ 2010 Quarter 1 Product Units Selling Price Total Sales XQ-103 20‚000 $12 $240‚000 XQ-104 12‚000 25 300‚000 Totals 32‚000
Premium Marketing Direct material price variance Budget
work 780 direct labour-hours each month and produce 2600 robes. The standard costs associated with this level of production are as follows: | | Total | Per Unit of Product | Direct materials | $ | 53248 | $ 20.48 | Direct labour | $ | 8320 | 3.20 | Variable manufacturing overhead (based on direct labour-hours) | $ | 3120 | 1.20 | | | | | | | | $ 24.88 | | | | | | During April‚ the factory worked only 760 direct labour-hours
Premium Cost Variable cost Costs
ACCOUNTING 569 MIDTERM 1 FALL 1995 NAME ______________________ ID # I. 15 Points 1. Otis Corp. has the following data: Selling price $50/unit Variable manufacturing costs $20/unit Fixed costs: Manufacturing $100‚000 Selling and admin. $ 50‚000 a.(3 points) The breakeven point is: b.(3 points) Given a volume of 15‚000 units‚ operating leverage is: c.(4 points)
Premium Variable cost Costs Cost
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
Premium Variable cost Cost Manufacturing
Chapter 6: Master Budget and Responsibility Accounting A budget is the quantitive expression of a proposed plan of action by management for a specified period Also to aid to coordinate what needs to be done to implement that plan A financial budget quantifies managers’ expectations regarding a company’s income‚ cash flows‚ and financial position Strategy specifies how an organization matches it capabilities with the opportunities in the marketplace to accomplish its objectives Stratigic plans are
Premium Variable cost Costs Cost