Exam 12: Flexible Budgets and Variance Analysis

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000. -What is the variable cost per line?

The Walton Manufacturing Company has developed the following standards for one of their products, a walnut fern stand. The company records materials price variances at the time of purchase. The following activity occurred during the month of April: a. Calculate the direct materials price and usage variances. b. Calculate the direct labour rate variance, the direct labour efficiency variance, and the total direct labour variance. c. Compute the variable manufacturing overhead spending and efficiency variances.

The Clamen Company makes table lamps, for which the following standards have been developed: During October, production of 100 lamps was expected, but 110 lamps were actually completed. Direct materials purchased and used were 2,100 pounds at an actual price of $2.20 per pound. Direct labour cost for the month was $5,310, and the actual pay per hour was $9.00. -The standard cost of direct material for each lamps produced is

A company had the following information pertaining to two different cases: -The fixed overhead volume variance arises because fixed-overhead accounting must serve two masters: the control-budget purpose and the

The degree to which a goal, objective, or target is met.

Given the following data: Required: Compute the price, usage and flexible-budget variances for direct material and labour. Indicate whether each variance is favourable or unfavourable.