Required Compute variances for the following items and indicate whether each variance is favorable or unfavorable: Note: Select "None" if there is no effect (i.e., zero variance). Item Sales price Sales revenue Budget Actual Variance $ 652 $ 526 $ 581,000 $ 602,000 Cost of goods sold $ 386,500 $ 361,000 Material purchases at 5,000 pounds $ 276,000 $ 281,500 Materials usage 181,500 pounds 179,000 pounds pounds Production volume 960 units 905 units units Wages at 4,000 hours $ 60,200 $ 58,800 Labor usage at $16 per hour $ 96,100 $ 97,200 Research and development expense $ 23,000 $ 26,500 Selling and administrative expenses $ 50,500 $ 41,000 Effect

Required Compute variances for the following items and indicate whether each variance is favorable or unfavorable: Note: Select "None" if there is no effect (i.e., zero variance). Item Sales price Sales revenue Budget Actual Variance $ 652 $ 526 $ 581,000 $ 602,000 Cost of goods sold $ 386,500 $ 361,000 Material purchases at 5,000 pounds $ 276,000 $ 281,500 Materials usage 181,500 pounds 179,000 pounds pounds Production volume 960 units 905 units units Wages at 4,000 hours $ 60,200 $ 58,800 Labor usage at $16 per hour $ 96,100 $ 97,200 Research and development expense $ 23,000 $ 26,500 Selling and administrative expenses $ 50,500 $ 41,000 Effect

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 22E

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Compute for the following and indicate if its FAVORABLE or UNFAVORABLE. Format: 11,111 F or 11,111 U Sales price variance = Sales volume variance= Sales variance=
Can you help me interpret these results i)Revenue Variance, Price, and Volume Variance Revenue variance = Actual revenues – Static revenues = $2,200,000 - $1,9800,000 = $220,000 Price variance = Actual revenues – Flexible revenues =$2,2000,000 - $2,200,000 =$0 Volume variance = Flexible revenues – Static revenues =$2,200,000 - $1,980,000 = $220,000 ii) Cost Variance, Volume Variance and Management Variance Cost variance = Static cost - Actual cost =$1,350,000 -$1,625,000 = $-275,000 Volume = Static cost – Flexible costs = $1,350,000 - =$1,475,000 = $-125,000 Management variance = Flexible cost- Actual cost =$2,200,000 - 1,625,000 =$575,000 iii) Profit Variance Profit Variance= Actual Profit - Static Profit = 225,000 - 130,000 = 95,000 Revenue Variance = Actual Revenue - Static Revenue = 2, 200,000 - 1,980,000 = 220,000 Cost Variance = Static Cost - Actual Costs = 1,850,000 - 1,975,000 = (125,000) Can you help me interpret these results
Exercise 10-27 Diagramming Direct-Material and Direct-Labor Variances (LO 10-3) During June, Danby Company's material purchases amounted to 10,920 pounds at a price of $5.30 per pound. Actual costs incurred in the production of 2,100 units were as follows: Direct labor: Direct material: $74,693 ($11.30 per hour) $45,633 ($5.30 per pound) The standards for one unit of Danby Company's product are as follows: Direct Labor: Quantity, 3 hours per unit Rate, $11.00 per hour Direct Material: Quantity, 4 pounds per unit Price, $5.1e per pound Required: Fill in the amounts in the tables below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3
Use the following returns for X and Y. Returns Year 1 22.8% 29.4% - 17.8 10.8 4.8 31.4 4 21.6 - 16.6 5.8 35.4 a. Calculate the average returns for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the variances for X and Y. (Do not round intermediate calculations and round your answers to 6 decimal places, e.g., 32.161616.) c. Calculate the standard deviations for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Y a. Average return % % b. Variance с. Standard deviation %
Required Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U): Note: Select "None" if there is no effect (i.e., zero variance). Item Sales price Sales revenue Budget Actual Variance Effect $ EA 528 $ 656 $ (127) F 606,000 $ 583,000 $ 22,000 U Cost of goods sold Material purchases at 5,000 pounds Materials usage Production volume $ 363,000 $ 389,500 $ (26,000) U EA 284,500 $ 278,000 $ 181,000 $ 184,500 $ 915 units 980 units Wages at 4,000 hours $ 59,000 $ 60,600 $ 6,000 F (3,000) U (60) units F (1,500) U Labor usage at $16 per hour $ 97,600 $ 96,300 $ 1,200 F Research and development expense $ 29,500 $ 25,000 $ 4,000 F Selling and administrative expenses 6999 $ 43,000 $ 53,500 $ (10,000) U
5. Compute the quantity variance based on the data on the image. * 2019 P 520 P 500 2018 Sale Price Cost per Unit 360 330 Units Sold 13,000 13,500 6. Assuming that the sales price increased by 5%, what is the cost price variance? * 2020 P 6,235,500 P 6,000,000 5,000,000 2021 Sales Cost of Sales 5,049,000 7. How much is the sales price- volume variance? * Gross Profit Last Year Gross Profit This Year P 861,250 900,000 Change in units sold last year Units Sold 650 50 Change in sales price Change in cost price P 100 75 Excerpt from the four-way analysis: Sales Quantity Variance - Unfavorable P 245,000 Cost Price Variance - Favorable Cost Quantity Variance - Favorable 45,000 178,750
Assume that sales quantity variance is $26,560 unfavourable, market share variance is $74,700 unfavourable. Which of the following statements is TRUE? A) Actual market size is lower than budgeted market size. B) Actual market size is higher than budgeted market size. C) Actual market share is higher than budgeted market share. D) None of these answers is correct.
What is the total gross profit variance? A. 2,000 favorable B. 2,000 unfavorable C. 1,000 unfavorable D. 2,500 favorable
Compute the following: Total gross profit variance Sales mix variance Final sales volume variance Format: 11,111 F or 11,111 U
Use the following returns for X and Y. Returns Year x y 1 21.8% 26.4% 2 -16.8 -3.8 3 9.8 28.4 4 19.6 -14.6 5 4.8 32.4 a. Calculate the average returns for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the variances for X and Y. (Do not round intermediate calculations and round your answers to 6 decimal places, e.g., 32.161616.) c. Calculate the standard deviations for X and Y. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Indicate whether each statement is true or false.1.a) DM quantity variance is favorable when the actual price is lower than the standardprice/pound. (……….)1.b) DL rate variance is unfavorable when the actual rate per hour was greater than thestandard rate per hour. (……….)
S1: The percentage increase in selling price is found by dividing the favorable sales price variance by last year's sales at the current year's sales quantity. S2: The percentage decrease in units sold is found by dividing the favorable cost volume variance by the planned level of cost of sales. A. both are true C. S1 is true D. S2 is true B. both are false