Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for hisdepartment's poor performance over the prior month. The department's cost control report is given below:Freemont Corporation-Machining DepartmentCost Control ReportFor the Month Ended June 30Machine-hoursDirect labor wagesSuppliesMaintenanceUtilitiesSupervisionDepreciationTotalActualResults38,000$ 86,100PlanningBudget35,000$ 80,50021,000134,000Variances$ 5,600 U2,100 U3,300 U500 U23, 100137,30015,70038,00080,000$ 380,200 $ 368,700 $ 11,500 U15,20038,00080,00000"I just can't understand all of these unfavorable variances," Weston complained to the supervisor of another department. "When theboss called me in, I thought he was going to give me a pat on the back because I know for a fact that my department worked moreefficiently last month than it has ever worked before. Instead, he tore me apart. I thought for a minute that it might be over the suppliesthat were stolen out of our warehouse last month. But they only amounted to a couple of hundred dollars, and just look at this report.Everything is unfavorable."Direct labor wages and supplies are variable costs; supervision and depreciation are fixed costs; and maintenance and utilities aremixed costs. The fixed component of the budgeted maintenance cost is $92,000; the fixed component of the budgeted utilities cost is$11,700.Required:2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machiningdepartment. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U"for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Name: Frank Weston, supervisor of the Freemont Corporation's Machining Depa
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Description: Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for hisdepartment's poor performance over the prior month. The department's cost control report is given below:Freemont Corporatio

Performance report is a report which analyses the actual results, flexible budget and planning…

Business

Accounting

Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Required: 2. Complete the performance report that will help Mr. Weston's superiors assess how well costs were controlled in the machining department. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You mention changes and revisions to the standard cost systems. If you were the Operations manager of a manufacturing firm, what control would you have in place to assure those changes were proper and accurate? What assertions would apply here?
Please help me with the functions needed to populate the correct answers in the highlighted areas. Thank you! Accessibility tab summary: Financial information for Patterson Incorporated, is presented in cells A4 to G14 and rows 16 to 17. A statement of requirement is presented in rows 19 to 24. A table for Standard Cost Variance Analysis - Direct Materials for student presentation is presented in cells A26 to B29 and A31 to C32. A table for Standard Cost Variance Analysis - Variable Manufacturing Overhead for student presentation is presented in cells A43 to B45 and A47 to C48. A statement of requirement is presented in row 50. A table for student presentation is presented in cell A52 to E62. Standards for one of Patterson, Inc.'s products is shown below, along with actual cost data for the month: Direct materials: Standard 2.4 yards @ $2.75 per yard $6.60 Actual 3.0 yards @ $2.70 per yard $8.10 Direct…
Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) variable overhead, $3,800; actual fixed overhead, $3, 500; actual direct labor hours, 1,400. Read the requirements. Data table Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standardco \table [[,, Formula,Variance], [VOH cost variance, = , 1 = , ], [VOH efficiency variance, =,1 =, 0
Standard Costing, Ethical Behavior, Usefulness of Costing Pat James, the purchasing agent for a local plant of the Oakden Electronics Division, was considering the possible purchase of a component from a new supplier. The component’s purchase price, $0.90 compared favorably with the standard price of $1.10. Given the quantity that would be purchased, Pat knew that the favorable price variance would help to offset an unfavorable variance for another component. By offsetting the unfavorable variance, his overall performance report would be impressive and good enough to help him qualify for the annual bonus. More importantly, a good performance rating this year would help him to secure a position at division headquarters at a significant salary increase. Purchase of the part, however, presented Pat with a dilemma. Consistent with his past behavior, Pat made inquiries regarding the reliability of the new supplier and the part’s quality. Reports were basically…
[1] The purpose of identifying manufacturing variances and assigning their responsibility to a person/department should be to A. Trace the variances to finished goods so that the inventory can be properly valued at year-end. B. Determine the proper cost of the products produced so that selling prices can be adjusted accordingly. C. Use the knowledge about the variances to promote learning and continuous improvement in the manufacturing process D. Pinpoint fault for operating problems in the organization.
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Identifying favorable and unfavorable variances. Tred-America, Inc., manufactures tires for large auto companies. It uses standard costing and allocates variable and fixed manufacturing overhead based on machine-hours. For each independent scenario given, indicate whether each of the manufacturing variances will be favorable or unfavorable or, in case of insufficient information, indicate "CBD" (cannot be determined). Fixed Variable Variable Fixed Overhead Overhead Overhead Overhead Production- Spending Efficiency Variance Spending Variance Volume Scenario Variance Variance Production output is 8% more than budgeted, and actual fixed manufacturing overhead costs are 7% less than budgeted Production output is 11% more than budgeted; actual machine-hours are 5% less than budgeted Production output is 15% less than budgeted Actual machine-hours are 18% greater than flexible-budget machine-hours Relative to the flexible budget, actual machine-hours are 10% greater, and actual variable…
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Standard Costing and Variance Analysis Standard cost systems set budgets for the materials, labor, and factory overhead used by a manufacturer to produce its product. Deviations from these standards are reported as variances.. Standards-variance analysis cost control system can be applied to non-manufacturing businesses, provided that they use repetitive activities to produce a common product or service. Based on real-life experience, describe and discuss a non-manufacturing (service) business that could benefit from the use of standards. Also explain how standards would help that business control its operations.
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