Preview

Acc 307

Satisfactory Essays
Open Document
Open Document
272 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Acc 307
ACC 307: Cost Accounting
Winter 2013
Practice Problems

Chapter 8

Problem 1:
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 3,200 units Budgeted fixed manufacturing overhead $20,000 Budgeted variable manufacturing overhead $5 per direct labor hour Budgeted direct manufacturing labor hours 2 hours per unit Fixed manufacturing costs incurred $26,000 Direct manufacturing labor hours used 7,200 Variable manufacturing costs incurred $35,600 Actual units manufactured 3,400

Required:

a. Compute a 4-variance analysis for the plant controller. b. Compute a 3-variance analysis for the plant manager. c. Compute a 2-variance analysis for the corporate controller.

Problem 2:
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: Variable overhead: 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

Fixed overhead: Budgeted costs: e Actual costs: f Flexible-budget variance: $500 favorable

Required:

Compute the missing elements in the report represented by the lettered

You May Also Find These Documents Helpful

  • Good Essays

    Acc 400

    • 795 Words
    • 4 Pages

    * Accounts receivables – Amount that is expected to be collected from the customers within the current accounting cycle…

    • 795 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Acc 557

    • 814 Words
    • 4 Pages

    References: Fok, L.Y., Hartman, S.J. & Kwong, K. (2010). Differences in business ethical values: a study of differences in business ethical values in mainland China, the U.S. and Jamaica. Review of Business. Retrieved November 16, 2012, from University of Phoenix, Week 1, ACC/557 – Accounting Ethics.…

    • 814 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Acc 105

    • 365 Words
    • 2 Pages

    The procedure that may be followed by the Human Resources Department in hiring new employees is:…

    • 365 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Acc 421 Wa3

    • 884 Words
    • 4 Pages

    The cash method of accounting would be best for Al to use so that he does not have to end up paying income taxes on uncollected accounts receivable.…

    • 884 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Acct 280

    • 595 Words
    • 3 Pages

    (b) The following questions could be asked by an internal user or an external user.…

    • 595 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Acct 505

    • 743 Words
    • 3 Pages

    c. Having an accountant who is able to manage the accounts and streamlining many of their processes…

    • 743 Words
    • 3 Pages
    Good Essays
  • Best Essays

    With more and more competitive in global market, costs of companies’ products become more and more important. In this assignment, the definitions of standard costing and variance analysis are introduced. This assignment refers that whether or not standard costing system and variance analysis are appropriate to any type and size of organization, and analyzes four…

    • 4967 Words
    • 20 Pages
    Best Essays
  • Satisfactory Essays

    Acct301

    • 483 Words
    • 2 Pages

    EXERCISE 7-13 PINK MARTINI CORPORATION Cash Budget For the Quarter Ended March 31, 2012 Beginning cash balance $31,000 Add: Receipts Collections from customers 180,000 Sale of equipment 3,500 Total receipts $183,500 Total available cash $214,500 Less: Disbursements Direct materials 41,000 Direct labor 70,000 Manufacturing overhead 35,000 Selling and administrative expense 45,000 Purchase of securities 12,000 Total disbursements $203,000 Excess of available cash over disbursements 11,500 Financing Borrowings 13,500 Repayments Ending cash balance $25,000 PROBLEM 7-1A DANNER FARM SUPPLY COMPANY Sales Budget 6 Months Ending June 30, 2012 Quarter Six Months 1 2 Expected unit sales 28,000 42,000 70,000 Unit selling price 60 60 60 Total sales $1,680,000 $2,520,000 $4,200,000 DANNER FARM SUPPLY COMPANY Production Budget 6 Months Ending June 30, 2012 Quarter Six Months 1 2 Expected unit sales 28,000 42,000 Add: Desired ending finished goods 12000 18000 Total required units 40,000 60,000 Less: Beginning finished goods units 8,000 12,000 Required production units 32,000 48,000 80,000 DANNER FARM SUPPLY COMPANY Direct Materials Budget—Gumm 6 Months Ending June 30, 2012 Quarter Six Months 1 2 Units to be produced 32,000 48,000 Direct materials per unit 4 4 Total pounds needed for production 128000 192000…

    • 483 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    accg301

    • 2246 Words
    • 9 Pages

    – Apart the timing issue, there is also an issue of the risk associated with future…

    • 2246 Words
    • 9 Pages
    Satisfactory Essays
  • Good Essays

    Acct 305

    • 1105 Words
    • 5 Pages

    Alpha Company's stock trades on the NY stock exchange. For Alpha Company, revenue on account amounted to $5,150. Cash collections of accounts receivable amounted to $2,300. Expenses incurred on account were $2,100. Cash paid on accounts payable was $1,950. Alpha's net income was…

    • 1105 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Ch 8 Cost Accounting Exam

    • 6188 Words
    • 25 Pages

    The variable overhead flexible-budget variance measures the difference between standard variable overhead costs and flexible-budget variable overhead costs.…

    • 6188 Words
    • 25 Pages
    Satisfactory Essays
  • Satisfactory Essays

    ACC 291

    • 295 Words
    • 2 Pages

    Differences between direct and indirect cash flow are just what they seem. Direct statement of cash flow identifies a company’s sources and uses of cash. This cash flow has three sections that include operating, investing, and financing activities. Operating activities includes receipts and payments from normal business operations. Investing activities include the purchase or sale of long-term asset and investments. Financing activities relate to borrowing money and making payments to creditors and investors. Now Indirect cash flow does not include the amount of information that direct cash flow does. Companies prepare the indirect statement by starting with net income as it was reported in the income statement. Adjustments are made for non-cash items. The indirect preparation method takes an accrual-based income statement and converts it to a cash-basis income statement.…

    • 295 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    ACC 205

    • 1344 Words
    • 12 Pages

    PepsiCo Inc. is an American multinational food and beverage corporation headquartered in Purchase, New York. PepsiCo is a world leader in convenient snacks, foods, and beverages, with revenues of $60 billion and over 285,000 employees. PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Coca-Cola Company has historically been considered PepsiCo's primary competitor in the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. In 2009, the Coca-Cola Company held a higher market share in carbonated soft drink sales within the U.S. In the same year, PepsiCo maintained a higher share of the U.S. refreshment beverage market, however, reflecting the differences in product lines between the two companies.…

    • 1344 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Acct 712

    • 643 Words
    • 3 Pages

    Considering the facts given in this case, I would argue that ASC 470-10 is not applicable in this situation. Product “X” is undeveloped and the status is undetermined, therefore, payments are not guaranteed through the future revenues of this particular product (ASC 470-10-25-1). Further, based on ASC 470-10-25-2, these factors do not apply in this case to qualify as a debt.…

    • 643 Words
    • 3 Pages
    Better Essays
  • Satisfactory Essays

    Acct 571

    • 316 Words
    • 1 Page

    Within this case study the writer will be analyzing and interpreting answers for the Capital Budgeting Case Study. The information obtained was provided in the Week 6 material of the Quantitative Reasoning for Business course. Throughout the paper the writer will cover the rationale behind the Net Present Value (NPV) and the Internal Rate of Return (IRR) results. The information obtained will show the relationship between the two and provide an explanation behind the acquisition recommendation within the Excel spreadsheet.…

    • 316 Words
    • 1 Page
    Satisfactory Essays