for the year ended June 30‚ 1998 presented the actual values generated together with the master (static) budget and master budget variances for the period. The company obtained higher Total Revenue than their budget but it turned out to an Operating Loss near a million dollars. This paper aims to study the budgets from actual results‚ and to compute the budget variances and to analyze its causes. After that‚ the company performance will be evaluated to recommend alternative solutions for improvement
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Use the following to answer question 1: Marger‚ Inc.‚ provided the following data for two recent months: [pic] |1. |Which of the following classifications best describes the behavior of Cost T? | |A) |Variable | |B) |Fixed
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notes in detail on “activity based costing”. 7 OR 2 Modern Manufacturers Ltd. have three production 7 departments P1‚ P2 and P3 and two service departments S1 and S2‚ the details pertaining to which are as under : Particulars P1 P2 P3 S1 S2 Direct wages (Rs.) 3‚000 2‚000 3‚000 1‚500 195 Working hours 3‚070 4‚475 2‚419 — — Value of machines (Rs.) 60‚000 80‚000 1‚00‚000 5‚000 5‚000 Horse-power of machines 60 30 50 10 — Light points 10 15 20 10 5 Floor space (sq. feet) 2‚000 2‚500 3‚000
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Quiz 2 Answers (10 POINTS) Question 1 (2 points) The Hansen Company has 3 product lines of tires - X‚ Y‚ and Z with contribution margins of $3‚ $5‚ and $7 respectively. Management expects a sales mix as follows: 90‚000 units of tire X‚ 60‚000 units of tire Y‚ and 50‚000 tires of Z in September 2009. Hansen’s fixed costs are expected to be $552‚000 for the same month. 1. Determine the breakeven point in units for X‚ Y‚ and Z respectively 2. Determine the operating income at a total sales level
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in the mass reproduction of instructional materials. AMG is organized into a number of production departments‚ each of which is responsible for a particular stage of the production process‚ such as copyediting‚ typesetting‚ printing‚ and binding. An engineering department provides technical assistance to the various production units. Ralph Davis‚ owner and manager of AMG‚ has made a concentrated effort to provide a quality product at a competitive price with delivery on the promised due date.
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Introduction Danshui Plant No.2 is a contract manufacturer locating in southern China and was assembles electronic products for companies wishing to save labor costs and they are using semiskilled labor for less than 1 dollar an hour. In August 2010‚ Danshui Plant No.2 in southern China has a 1 year contract in the period between 1 June 2010 and 31 May 2011 with Apple incorporation to assemble the Apple iPhone 4. Based on the contract‚ Danshui need to assemble 2.4 million iPhones within 1 year.
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www.eduwithsugeeth.com Lesson Mock 04: Specimen Answer Standard Costing 01. (a) The average variable cost per unit falls as volume increases from 5‚000 to 15‚000 units and then increases as volume increases to 30‚000 units. The average material costs may initially fall because of economies of scale due to bulk discounts‚ but then may rise if there is scarcity of supply‚ requiring a premium to be paid. The product-specific fixed costs are constant until the volume increases from 10‚000 to
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2 Discussion 2 Costing method & purpose of variance analysis 2 Key findings 3 Material price variance 3 Material usage variance 3 Labour rate variance 4 Labour efficiency variance 5 Variable overhead variance 5 Fixed overhead expenditure variance 6 Fixed overhead volume variance 6 Variable selling and distribution variance 6 Sales variance 7 Responding to publicity 7 Conclusion 8 Appendix 1: Key findings of variance analysis 9 Appendix 2: Profit Magin‚ Mark-up and
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- Break even sales volume Profit or loss at Rs. 46 lakh sales Sales to earn a profit of Rs. 5 lakh. (b) Calculate Direct Material Cost Variances Direct Material usage variance and Direct Material Price Variance from the following information : Finished production during the period 1000 units Opening Stock of material 1000 kg. Closing Stock of material 2000 kg.
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Material & Labor Variances Assuming there are no inventories from previous year. Let’s look at Material Price variances as well as labor wage & efficiency variance as the data provided allows us to look at all these parameters. With no understanding of Materials details & measures‚ I will not be looking at material quantity variance. {draw:frame} {draw:frame} In terms of interpretation‚ an easy one to make could be : State Street Shop manager has probably chosen the right supplier
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