margin/contributions variances | | | | | | | actual sales made this period | | | standard mix proportion is: | | | actual sales at standard mix | | | | | | | | | | | | | budgeted sales | | | | budgeted sales margin | | | =budgeted sales revenue | | | | | | | | | | | | | actual sales | | | | actual sales margin | | | | =actual sales revenue | | | | | | | | | | | | | * * total sales margin variance | | | |
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products are based on costumer’s specification‚ and therefore each product is unique. Process costing can not be used under our present set-up. Possible reasons for cost differences between actual and standard costs under Conley’s system: a. Materials Price and Usage Differences b. Labor Rate Differences c. Labor Efficiency Difference d. Production Volume Difference Standard Cost are usually develop from previous year’s experiences and some adjustments from each department’s managers If
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cost system in a simple setting. It shows how such a system works‚ including the development of variances‚ and ties cost accounting to the accounting cycle the student learned in Part 1 of the book. (Brisson’s system is the same as the one depicted in Illustration 19-2.) This seems to be a valuable exercise‚ especially in helping to minimize the omnipresent problems students have with production cost variance analysis in the next chapter. If not assigned for class‚ this makes a good exam case. (For ease
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Bangladesh Open University CEMBA/CEMPA Program Semester 122 Course : Management and Organization Submit by : September 20‚ 2013 Instructions for Assignment Submission 1. Assignments must be submitted on A4 size paper in own hand writing. 2. Completed cover must be used on the top of each assignment (For specimen cover page‚ see page-3 of the Semester Calendar) 3. Assignments must be submitted to the coordinator of the study center you are attached with. 4. Spiral binding must be avoided
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and for the budget to be functional‚ an organization must stick to the budget very closely. No matter how closely a budget is followed‚ there will be variances. Organizations can expect such variances and be able to work such situations into budgetary constraints. This paper assesses certain situations in which budgeting‚ forecasting‚ and variance interact. Managing the Budget within the Forecast According to Cleverly & Cameron‚ (2007‚ p. 331)‚ when management is done by many different people
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1. The direct materials quantity standard should A) exclude unavoidable waste. B) exclude quality considerations. C) allow for normal spoilage. D) always be expressed as an ideal standard. Use the following to answer questions 2-4: Stiner Company has a materials price standard of $2.00 per pound. Five thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 5‚000 pounds‚ although the standard quantity allowed for the output
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QUESTION 1 In developing an annual budget accompanies may choose to adopt either top down budgeting approach or bottom up budgeting approach. In the finance ministry bottom down budgeting was a traditional way used in budget formulation. Top down budgeting came in the 1990s as a motivation to curb the fiscal deficits in which it lead to fiscal crisis in other countries. Top down budgeting was found that it helps and manages well the fiscal deficit efficiently unlike bottom up budgeting approach.
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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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department 43 103 Supervision costs vary with direct labor costs in each department. 1. Calculate the budgeted cost of trophies and plaques based on a single plant-wide overhead rate‚ if total overhead is allocated based on total direct costs. 2. Calculate the budgeted cost of trophies and plaques based on department overhead rates‚ where forming department overhead costs are allocated based on direct labor costs of the forming department ‚ and assembly
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022178 28‚337.6613/120 units = 236.147177 16‚881.4516/150 units = 112.543011 Profit per cabinet Selling price – material cost/cabinet – labor cost/cabinet - cost per cabinet = 780 – 160 - 240 – 677.022178 = - 297.022178 (loss) Selling price – material cost/cabinet – labor cost/cabinet - cost per cabinet = 570 – 130 – 200 – 236.147177 = 3.852823 (profit) Selling price – material cost/cabinet – labor cost/cabinet - cost per cabinet = 450 – 100 – 160 – 112.543011 = 77.456989 (profit) Total
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