Assume that a company's planned level of activity is 1,000 hours and its actual level of activity is 1,100 hours. Based on this information, the company's activity variance for revenue will be: Multiple Choice either favorable or unfavorable depending on the cost formula. zero. unfavorable. favorable.
Q: The standard direct labor cost per unit for a company was $27 (- $18 per hour x 15 hours per unit)…
A: Direct labor cost is referred to as that cost which is related to the labor force which is used in…
Q: Bellingham Company produces a product that requires 8 standard direct labor hours per unit at a…
A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked Labor time…
Q: Ben mean company produces a product that requires 4 standard hours per unit at a standard hourly…
A: Given, Actual rate per hour = $11.85 Standard rate per hour = $12 Actual hours = 58,000 hours
Q: Oslo Company had the following result in June Planned Actual Sales 160,000 162,500 Variable cost at…
A: Revenue variance is the difference between actual sales revenues and budgeted sales revenues.
Q: Beverly Company has determined a standard variable overhead rate of $3.90 per direct labor hour and…
A: Standard hours=Actual units×Labor hour per unit=3400×0.50=1700
Q: Formidable Company collected the following information: Standard costs per unit: Variable…
A: Variance is the difference between budgeted and actual costs or production, on the basis of which…
Q: Williams Corporation reports the following direct labor information for November: Standard rate 2$…
A: Standard Costing: Standard costing involves setting-up predetermined cost or expenses estimates.…
Q: The standard number of hours that should have been worked for the output attained is 9,000 direct…
A: The variance is the difference between the actual data and standard output of the production.…
Q: A company uses standard marginal costing. Last month, when all sales were at the standard selling…
A: Calculation of Actual Contribution: Standard Contribution $85,600 Variable cost variance…
Q: Aretha Company provided the following information: Standard variable overhead rate (SVOR) per…
A: Formula used: 1)Variable overhead spending variance: Variable overhead spending variance=AH(AR-SR)…
Q: I need helo solving this problem
A: Calculate the direct labor rate, efficiency, and spending variances.
Q: The standard number of hours that should have been worked for the output attained is 10,000 direct…
A: Variance analysis is defined as the procedure followed by the management to study the deviations…
Q: se the following information of Alfred Industries. Standard manufacturing…
A: 1) Calculate overhead spending variance Units actually produced in the current month 18,000 units…
Q: If a company calculates that the actual cost for the actual hours worked by employees was…
A: Direct labor variance arises when budgeted labor cost is not same as actual labor cost. Labor cost…
Q: Japan Company produces lamps that require 2 standard hours per unit at an hourly rate of $20.40 per…
A: a. Rate variance (Standard Rate - Actual Rate)*Actual Hour b. Time variance (Standard Hour…
Q: Frontera Company’s output for the current period results in a $20,000 unfavorable direct labor rate…
A: Labour cost variance: The difference between the standard cost of labour estimated and the actual…
Q: Assume the following information for one of a company's variable expenses: • The actual amount of…
A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…
Q: Encinas Company produces a product that requires 3 standard hours per unit at a standard hourly rate…
A: Direct labour cost variance shows difference between standard cost of labour and actual cost of…
Q: Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a…
A: The variance is the difference between the actual data and standard output of the production.
Q: The following standards for variable overhead have been established for a company that makes only…
A: The term "variable overhead efficiency variance" refers to both the impact of the discrepancy…
Q: The following data relate to direct labor costs for the current period: Standard costs 7,300 hours…
A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked
Q: Japan Company produces lamps that require 3 standard hours per unit at an hourly rate of $11.30 per…
A: Introduction: Variance analysis is the quantitative examination of the differences between actual…
Q: The following information describes a company's direct labor usage in a recent period. 72,000 15…
A: Direct labor cost is the difference between actual direct and standard direct labor rates at a…
Q: A company reports the following information for its direct labor. Actual hours of direct labor used…
A: Direct Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked…
Q: ing is the data of a manulacuring con the figures given below, calculate: ) Materials Cost Variance…
A: Material cost variance refers to the variance which evaluates the difference between the estimated…
Q: The following data relate to direct labor costs for the current period: Standard costs 7,300 hours…
A: Direct Labor time variance = (Actual hours worked - Standard hours allowed)*Standard rate per hour
Q: The following information is given for one of a company's variable expenses: • The activity variance…
A: Planned hours 1000 Actual hours 900 Difference 100
Q: The following data relate to direct labor costs for the current period: Standard costs 6,900…
A: Formula:
Q: Japan Company produces lamps that require 3 standard hours per unit at an hourly rate of $11.60 per…
A: Formulas: Direct Labor rate variance = (Standard Rate - Actual Rate)*Actual Hour Direct Labor…
Q: What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? (d)…
A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…
Q: A manager prepared the following table by which to analyze labor costs for the month: Actual hours…
A: Total labor variance = Standard hours at Standard rate - Actual hours at Actual rate Actual hours at…
Q: Adams Company established a predetermined variable overhead cost rate at S10.00 per direct labor…
A: Formula: Variable overhead cost variance = ( Standard cost - Actual cost ) x Actual hours
Q: The following information describes a company’s direct labor usage in a recent period.…
A: Labor rate variance = Actual hour × Actual rate - Actual hours × Standard Rate Labor Rate Variance =…
Q: Starts Inc. produces a product that require 3.50 standard hours per unit at a standard hourly rate…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The following data relate to direct labor costs for the current period: Standard costs 7,300 hours…
A: Direct Labor time variance = (Actual hours worked - Standard hours allowed)*Standard rate per hour
Q: Williams Corporation reports the following direct labor information for November:…
A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…
Q: he following labor standards have been established for a particular product: Standard…
A: Labor rate variance: It is the difference of the actual rate and budgeted rate to be multiplied by…
Q: Bellingham Company produces a product that requires 7 standard direct labor hours per unit at a…
A: Variance refers to a change between the expected value and the actual result. This term is usually…
Q: How would i solve this problem
A: Compute the variable overhead rate and efficiency variances by indicating whether the variables are…
Q: The following information is available from the KANSAN CORP.: Actual factory O/H…
A: In budget planning or managerial accounting, variance analysis is the examination of differences…
Q: Use the following data for questions #5-7 Japan Company produces furniture and has the following…
A: Direct labour rate variane is the difference in standard cost of labour with actual cost of labour…
Q: Acme Inc. has the following information available: Actual price paid for material $1.00 Standard…
A: Note: As per the Policy , we can only answer up to 3 sub-parts, we’ll answer the first 3. Please…
Q: Given the following information in standard costing: Standard 18,200 hours at $6.20 Actual…
A: Direct labor rate variance is a difference between the actual labor hours at budgeted cost and the…
Q: Alvarado Company produces a product that requires 7.5 standard direct labor hours per unit at a…
A: Direct labor rate variance calculates the difference in standard labor cost and actual labor cost…
Q: CPA Company had the following results in June. Planned Actual Sales P160,000 P162,500 Variable Costs…
A: Here in this question, we are require to calculate revenue variance. Revenue variance is a variance…
Q: Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a…
A: Variance in direct labour costs means difference in standard labour costs and actual labour costs.
Q: Titus Company produced 6,800 units of a product that required 3 standard hours per unit. The…
A: Fixed overhead volume variance = Absorbed fixed overhead - Budgeted fixed overhead If the absorbed…
Q: The actual variable costs are $26000 and the actual units produced total 300 and the actual direct…
A: Solution: Variable cost rate variance = (SR - AR) * AH Variable cost efficiency variance = (SH - AH)…
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- Find the values of the missing items (a) through (x). Assume the actual sales volume equals actual production volume. Marketing and Administrative Sales Price Variance Variance Units Sales Revenue Less: Variable Manufacturing Costs Variable marketing and administrative costs Contribution margin Fixed manufacturing costs Fixed marketing and administrative costs Operating Profit PreviousNext Reported income statement (based on actual sales volume) Manufacturing variance (a) (g) (n) (q) (r) (t) $4,320 $3,600 (0) $1,800 U $ 400 F (u) (p) (s) (v) (w) $3,600 F (X) $3,600 F Flexible Budget (based on actual sales volume (b) (h) (m) Sales Activity Variance 4,000 F (1) $19,200 (i) $4,800 $800 U $12,000 (k) $3,000 $4,000 (1) Master Budget (based on budgeted sales volume) 20,000 $30,000 (c) (d) (e) (f) $16,000 $10,0001.What is a cost whose total amount changes in direct proportion to a change in volume? mixed cost fixed cost irrelevant cost variable cost 2. Which of the following costs is an example of a fixed cost? delivery costs salary of plant manager direct materials sales commissions 3. If production increases by 15%, how will total variable costs likely react? remain the same decrease by 15% increase by 7.5% increase by 15% 4. Which of the following statements is TRUE with respect to fixed costs per unit? They will increase as production decreases They will decrease as production decreases They will remain the same as production levels change They will increase as production increases 5. Canine Company produces and sells dog treats for discriminating pet owners. The unit selling price is $10, unit variable costs are $7, and total fixed costs are $3,300. What are breakeven sales? $11,000 $4,714 $3,300 $7,700 6. Fixed Company produces a single product selling for $30 per unit. Variable costs…How many statements below regarding margin of safety are correct? 1. It is the amount by which sales can be reduced without incurring a loss. 2. It is the difference between budgeted sales and breakeven sales. 3. It can be expressed in terms of unit, pesos or percentage of sales. 4. Its presence indicates that the company expects profit. 5. The product of margin of safety units and unit contribution margin is the projected profit for the period. 6. The higher the margin of safety, the lower is the risk of incurring operating loss. 3 4
- Your boss would like you to estimate the fixed and variable components of a particular cost Actual data for this cost over four recent periods appear below. Activity Cost Period 1 22 235 Period 2 23 243 Period 3 25 255 Period 4 20 227 Using the least-squares regression method, what is the cost formula for this cost? Y = P107.45 + P5.89X O Y = P0.00 + P10.67X O Y = P111.92 + P5.69X O Y = P120.81 + P3.56XWhat is a cost whose total amount changes in direct proportion to a change in volume? mixed cost fixed cost irrelevant cost variable cost 2. Which of the following costs is an example of a fixed cost? delivery costs salary of plant manager direct materials sales commissions 3. If production increases by 15%, how will total variable costs likely react? remain the same decrease by 15% increase by 7.5% increase by 15% 4. Which of the following statements is TRUE with respect to fixed costs per unit? They will increase as production decreases They will decrease as production decreases They will remain the same as production levels change They will increase as production increases 5. Canine Company produces and sells dog treats for discriminating pet owners. The unit selling price is $10, unit variable costs are $7, and total fixed costs are $3,300. What are breakeven sales? $11,000 $4,714 $3,300 $7,700 6. Fixed Company produces a single product selling for $30 per unit. Variable costs…A company determined that the marginal cost, C′(x) of producing the xth unit of a product is given by C′(x)=x3−2x. Find the total cost function C, assuming that C(x) is in dollars and that fixed costs are $2000.
- In response to a request from your immediate supervisor, you have prepared a CVP graphportraying the cost and revenue characteristics of your company’s product and operations.Explain how the lines on the graph and the break-even point would change if ( a ) the selling priceper unit decreased, ( b ) fixed cost increased throughout the entire range of activity portrayed onthe graph, and ( c ) variable cost per unit increased.Given the following information, calculate the purchasing department's efficiency variance. Standard number of transaction per day Standard labor cost per day Actual number of days for processing transactions Actual number of transactions processed Actual labor cost per day Multiple choice question. $2,400 favorable $4,400 favorable $4,400 unfavorable $2,400 unfavorable 20 $200 120 1,960 $180Sharp Company manufactures a product for which the following standards have been set: Standard Quantity Standard Price Standard or Hours or Rate Cost $5 per foot ? per hour Direct materials 3 feet $ 15 Direct labor ? hours ? During March, the company purchased direct materials at a cost of $45,375, all of which were used in the production of 2,350 units of product. In addition, 4,800 direct labor-hours were worked on the product during the month. The cost of this labor time was $50,400. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance $ 2,250 U $ 3,400 U $ 1,000 U Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month's production. c. Compute the standard hours allowed per unit of…
- Management should focus its sales and production efforts on the product or products that will provide a. the lowest product costs b. the lowest direct labor hours c. the highest sales revenue d. the maximum contribution margin The following data relate to direct labor costs for the current period: Standard costs 7,500 hours at $11.70 Actual costs 6,000 hours at $12.00 What is the direct labor time variance? a. $18,000 favorable b. $17,550 unfavorable c. $17,550 favorable d. $18,000 unfavorable Which of the following is not a factory overhead allocation method? a. factory costing b. multiple departmental rates c. activity-based costing d. single plantwide rateExplain the terms break-even point and margin of safety as used in cost-volume-profit (CVP) analysis in short term decision marking. b) Kack Ltd is a company which uses cost-volume-profit analysis for planning and control decisions. You have been given the following information for the just ended operational period: Total revenue GH¢3,600,000 The annual total cost GH¢3,510,000 Variable cost GH¢2,700,000 Required: As the Management Accountant, calculate the following for the use of management in decision making for the forthcoming period: i) Variable cost/sales ratio. (1 mark) ii) Contribution/sales (C/S) ratio. iii) Break-even sales (in value). ( iv) Margin of safety (in value). (1 mark) v) Margin of safety (in percentage). vi) The sales value which would yield a profit of GH¢270,000 assuming the C/S ratio and fixed costs remain unchanged. vii)The sales value which would yield a profit of 15% of that sales assuming the C/S ratio and the fixed costs remain unchanged. viii)…Assume the following information for one of a company’s variable expenses: The activity variance is $790 favorable. The actual amount of the expense is $8,300. The planned level of activity is 1,000 hours. The actual level of activity is 900 hours. The cost formula for this expense must be: Multiple Choice $8.20 per hour. $8.90 per hour. $7.90 per hour. $7.20 per hour.
