Analysis Presented by : Edmund C. Cabrera MBA Student Universidad de Manila Definitions STANDARD COSTS – are predetermined or target unit costs of production which should be attained under efficient conditions. It is the amount and costs of direct material‚ direct labor‚ and factory overhead required to produce one unit of finished product. STANDARD COST SYSTEM – is an accounting system which uses standard costs rather than actual costs to account for units as they flow through the manufacturing process
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Zeller faces‚ management budgets sales semiannually. Its projections for the first 2 quarters of 2010 are as follows. Unit Sales Product Quarter 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
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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 than the amount that is budgeted for‚ meaning that Kaufmann spent more on
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operating income 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
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Date: January 3rd‚ 2013 To: Moderators From: Candidate Subject: New Look Jackets Variance Analyses and Draft Operating Budget Introduction The following report explains the significance and reasons for the variances in New Look Jacket’s 2012 detailed variance report and provides a draft operating budget for 2013. Analysis of Variances The sales price variance is zero‚ meaning the average price New Look Jackets sold products was the same as the budgeted sales price. The sales mix variance
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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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concern. Return on investment. (c) Management Accounting. (d) Capital rationing. 5. Explain differences between : Prime cost and factory cost. First in‚ First out and Last in‚ First out methods of inventory valuation. Fixed budget and flexible budget. Contribution and margin of safety. MS-4 1 P.T.O. Discuss the features of accounting information which can be generated from accounting records. How do different users use this information ? (a) Following information
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3.0 Variance Analysis 3.1 Flexible-Budget Variance Analysis In Barnes Scuba Diving case‚ the main comparison for the flexible-budget variance analysis would be between the actual results and flexible budget. Static budget would not be useful for this comparison due to the different sales unit output which may result in a misleading and inaccurate result comparison. With reference to the Flexible Budget Section attached in Annex X‚ Flexible-Budget Variance for Revenues was identified to be a favourable
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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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able to assemble 2.4 million as their expected and is operating at a loss when the third month of the contract. Their current production was only 180‚000 units per months compared to their planned monthly budget is 200‚000 units. Therefore‚ manager was called the plant controller to analyze the budget and request a summary of monthly operations for August as soon after the end of the month as possible in order to identify the source of performance problem. Problem statement In the
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