CHAPTER 7 FLEXIBLE BUDGETS‚ DIRECT-COST VARIANCES‚ AND MANAGEMENT CONTROL 7-1 Management by exception is the practice of concentrating on areas not operating as expected and giving less attention to areas operating as expected. Variance analysis helps managers identify areas not operating as expected. The larger the variance‚ the more likely an area is not operating as expected. 2. Two sources of information about budgeted amounts are (a) past amounts and (b) detailed engineering studies
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ACC3320 Accounting for Decision Making Final Exam 1. Riggs Enterprise’s flexible budget cost formula for indirect materials‚ a variable cost‚ is $0.45 per unit of output. If the company’s performance report for last month shows a $90 favorable variance for indirect materials and if 8‚700 units of output were produced last month‚ then the actual costs incurred for indirect materials for the month must have been: A. $4‚005 B. $3‚915 C. $3‚825 D. $3‚735 2. Chmielewski Medical Clinic measures
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PM). 5. After finishing the exam‚ please email me back your answers through Blackboard messages. Question 1 (20 points) Associated Media Graphics (AMG) is a rapidly expanding company involved 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
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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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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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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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details for lodgement options if the Learn line Assignment Lodgement link for this unit is unavailable. DECLARATION BY STUDENT I certify that this assignment is my own work‚ based on my own personal study and research‚ and that I have acknowledged all material and sources in the preparation of this assignment‚ whether they be books‚ articles reports‚ lecture notes‚ any other kind of document or personal communication. I also certify that this assignment has not previously been submitted for assessment
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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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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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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
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