Exam 7: Flexible Budgets,variances,and Management Control: I

Vienna Chocolate Company produces fudge in large batches.One batch of fudge has the following standard costs and amounts: Vienna Chocolate Company produced 400 batches of fudge in the most recent month.Actual input costs and per batch usage levels were as follows: Required: a.Calculate the total material input rate variance. b.Calculate the total material efficiency variance. c.Calculate the total labour rate variance. d.Calculate the total labour efficiency variance.

Some financial variances show increases in operating income relative to a budgeted or allocated amount,and others show decreases in operating income.Respectively,these variances are

Compute the total standard cost per book for Publisher's Company using the following information: 1.Direct Materials: 1 ream of paper allowed per output unit manufactured,at $5.00 per ream. 2.Direct Mfg.Labour: 0.35 labour-hours of input allowed per output unit finished,at $17.50 standard cost per hour. 3.Variable Manufacturing Overhead: assigned on the basis of 0.25 per hour at $25 standard cost per hour per output unit finished.

Al's Boxes manufactures corrugated boxes.The standard materials allowed for each box is 0.5 kilograms of paper,which has a standard cost of $5 per kilogram.During April 10,000 kilograms were used to manufacture 19,500 boxes.The actual materials cost was $5.25 per kilogram. Required: a.Determine the materials rate variance. b.Determine the materials efficiency variance.

Use the information below to answer the following question(s). Tractor Corporation produces toy tractors.The company uses the following direct cost categories: Actual performance for the company is shown below: Actual output: 5,000 units Direct Materials: Direct Manufacturing Labour: Direct Marketing Labour: -What is the combined total of the flexible budget variances?

A variance is the difference between the actual cost for the current and previous year.

mal dive Designs makes chair cushions.The standard direct materials quantity is 0.8 kilogram per cushion at a cost of $2.70 per kilogram.The actual results for the production of 15,000 cushions was 0.75 kilograms per cushion,at a cost of $2.65 per kilogram.Calculate the direct materials input rate variance and the direct materials efficiency variance.

Use the information below to answer the following question(s). Robb Industries Inc.(RII),developed standard costs for direct material and direct labour.In 2016,RII estimated the following standard costs for one of their major products,the 10-litre plastic container. During June 2017,RII produced and sold 5,000 containers using 490 kilograms of direct materials at an average actual cost per kilogram of $32 and 250 direct manufacturing labour-hours at an average actual wage of $15.25 per hour. -June's direct material efficiency variance is

Waddell Productions uses a standard cost system for all manufacturing transactions.For the month of June the following activities have taken place: Required: Record the necessary journal entries to: 1.Record the materials purchases assuming that materials rate variances are recorded at the time of purchase. 2.Record the materials placed into production. 3.Record the direct labour used in production.

Bach Table Company manufactures tables for schools.The current year operating budget is based on sales of 40,000 units at $50 per table.Operating income is anticipated to be $300,000.Budgeted variable costs are $30 per unit,while fixed costs total $500,000. Actual income for the year was a surprising $2,268,000 on actual sales of 42,000 units.Actual variable costs were $33 per unit and fixed costs totaled $550,000. Required: Prepare a Level 2 variance analysis report with both flexible-budget and sales-volume variances.

A favourable direct materials yield variance results when less direct materials are used than planned.

A packaging company produces cardboard boxes in an automated process.The required direct materials costs $0.30 per unit.Fixed manufacturing overhead costs are budgeted at $24,000 per month and are allocated based on units of production.The budgeted contribution margin per unit is $0.85,and administration fixed costs are budgeted at $7,500 per month.What is the flexible-budget amount for operating income for 40,000 and 20,000 units,respectively?

The direct materials mix variance is the

Use the information below to answer the following question(s). Jenny's Condiments makes a specialty mustard for street vendors that is composed of wet ingredients and dry ingredients.Two parts of wet ingredients at a standard cost of $12,and three parts of dry ingredients at a standard cost of $9,are required for every batch.In the first week of July,Jenny produced two hundred thirty batches of mustard using 450 units of wet ingredients and 750 units of dry ingredients. -For the dry ingredients what are the material mix and yield variances respectively?

Use the information below to answer the following question(s). Everclean Filter Corporation used the following data to evaluate their current operating system.The company sells items for $10 each and had used a budgeted selling price of $11 per unit. -What is the static-budget variance of revenues?

Use the information below to answer the following question(s). All Good Things Ltd.planned on producing 600 units for the year.However,actual production was 400 units. Information concerning the direct labour cost for All Good Things Ltd.is as follows: actual results 1,000 hours at $25 per hour;static budget amounts were 1,200 hours at $21 per hour. -What is the All Good Things Ltd.direct labour rate variance?

When benchmarking,the best levels of performance are typically found in companies that are totally different.

Benchmarking key activities can be even more important in not-for-profit/non-profit (NFP)organizations than it is for businesses seeking to make a profit.

Managers generally have more control over efficiency variances than rate variances.

Use the information below to answer the following question(s). A company makes table lamps,for which the following standards have been developed: During January,production of 100 lamps was expected,but 110 lamps were actually completed.Direct materials purchased and used were 2,100 kilograms at an actual price of $2.20 per kilogram.Direct labour cost for the month was $5,310,and the actual pay per hour was $9.00. -The direct-labour efficiency variance for the month of January is