You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.   After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:     Cost Formula Actual Cost in March Utilities $16,500 + $0.19 per machine-hour $ 21,530 Maintenance $38,000 + $1.50 per machine-hour $ 57,300 Supplies $0.60 per machine-hour $ 10,000 Indirect labor $94,600 + $1.90 per machine-hour $ 127,800 Depreciation $67,700 $ 69,400   During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 17,000 machine-hours during March.   Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March.

Preparing a Flexible Budget for Performance Reporting Suppose you receive the following performance report from the accounting department for your first month as plant manager for a new company. Your supervisor, the vice president of manufacturing, has concerns that the report does not provide an accurate picture of your performance in the area of cost control.

Prepare a flexible budget and recompute the budget variances. Explain what might have caused the fixed costs to be different from the amount budgeted.

i need the answer quickly

These are True/False questions.  ____     6.   If the total unit cost of manufacturing Product Y is currently $36 and the total unit cost after modifying the style is estimated to be $48, the differential cost for this situation is $12.   ____     7.   A process whereby the effect of fluctuations in level of activity is built into the budgeting system is referred to as flexible budgeting.   ____     8.   In an investment center, the manager has the responsibility and the authority to make decisions that affect not only costs and revenues, but also the plant assets invested in the center.   ____     9.   The capital expenditures budget summarizes future plans for acquisition of fixed assets.   ____   10.   The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called capital investment analysis.

can I have assistance on question 1 section b of this problem. I found the question answered, however section b i couldn't understand or see question 1 a is anwered question 2 i answered Managerial accounting 23-2PB

Preparing a Flexible Budget for Performance Reporting Suppose you receive the following performance report from the accounting department for your first month as plant manager for a new company. Your supervisor, the vice president of manufacturing, has concerns that the report does not provide an accurate picture of your performance in the area of cost control. Actual Budgeted Variance Units Costs: 10,000 12,000 2,000 U Direct materials $358,800 Direct labor $414,600 Variable manufacturing overhead $216,000 Fixed manufacturing overhead Total costs $432,000 $73,200 F $518,400 $103,800 F $259,200 $43,200 F $450,000 $432,000 $18,000 U $1,439,400 $1,641,600 $202,200 F REQUIRED Prepare a variance analysis Note: Do not use negative signs with your answers. Static Budget Activity Variance Flexible Budget Flexible Budget Variance Units (in cases) 12,000 10,000 Actual 10,000 ✓ Static (Total) Variance Costs: Direct materials Direct labor Variable overhead $ $ 432,000 $ $ 504,000 x $ 360,000 * F…

9.2

Q.Are these budget standards challenging for the department that produces product Z?

> Frau Drew Castello, general manager of Sunflower Manufacturing, was frustrated. He wanted the budgeted results, and his staff was not getting them to him fast enough. Drew decided to pay a visit to the accounting office, where Jeff Hollingsworth was to be working on the reports. Jeff had recently been hired to update the accounting system and speed up the reporting process. supposed appear to be "What's taking so long?" Drew asked. "When am I going to get the variance reports?" Jeff sighed and attempted to explain the problem. "Some of the variances way off. We either have a serious problem in production, or there is an error in the spreadsheet. I want to recheck the spreadsheet before I distribute the report." Drew pulled up a chair, and the two men went through the spreadsheet together. The formulas in the spreadsheet were correct and showed a large unfavorable direct labor efficiency variance. It was time for Drew and Jeff to do some investigating. After looking at the time…