Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 15, Problem 15.22P
Problem 15.22
LO 4, 5
Direct labor variances-banking application Founders State Bank developed a standard for teller staffing that provided for one teller to handle 12 customers per hour. During June, the bank averaged 50 customers per hour and had five tellers on duty at all times. (Relief tellers filled in during lunch and rest breaks.) The teller compensation cost is $12 per hour. The bank is open eight hours a day, and there were 21 working days during June.
Required:
- Calculate the teller efficiency variance during June expressed in terms of number of tellers and cost per hour.
- Now assume that in June, during the 11 A.M. to 1 P.M., period every day, the bank served an average of 80 customers per hour. During the other six hours of the day, an average of 40 customers per hour were served.
- Calculate a teller efficiency variance for the 11 to 1 period expressed in terms of number of tellers per hour and total cost for the month.
- Calculate a teller efficiency variance for the other six hours of the day expressed in terms of number of tellers per hour and total cost for the month.
- As teller supervisor, explain the significance of the variances calculated in 1 and 2, and explain how you might respond to the uneven work flow during each day.
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Question 8
Direct Labor Cost Budget
Stevenson Inc. budgeted production of 45,000 personal journals in 20Y6. Each journal requires assembly. Assume that two minutes are required to assemble each journal.
If assembly labor costs $17 per hour, determine the direct labor cost budget for 20Y6. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.$fill in the blank 1
68
A hairstyling salon constructed a flexible budget projecting 1,000 and 1,100 customers for the month of June.
The owner expects 1,000 customers but hopes for 1,100 customers. Average sale per customer is $40.
Costs include rent of $5,000; payments to hairstylists of $20 per customer;
and overhead of $10 per customer. In June, the salon had 1,050 customers, and the net income was $8,000.
What will the owner find concerning the net income variance while reviewing the bottom line of the flexible budget and the actual monthly results?
O This net income shows a favorable $2,500 variance.
O This net income shows an unfavorable $2,500 variance.
O This net income shows a favorable $2,000 variance.
O This net income shows an unfavorable $2,000 variance.
Chapter 15 Solutions
Accounting: What the Numbers Mean
Ch. 15 - Prob. 15.1MECh. 15 - Prob. 15.2MECh. 15 - Prob. 15.3MECh. 15 - Prob. 15.4MECh. 15 - Mini-Exercise 15.5 LO 4, 5, 6 Variable overhead...Ch. 15 - Mini-Exercise 15.6
LO 4. 5, 6
Fixed overhead...Ch. 15 - Prob. 15.7ECh. 15 - Prob. 15.8ECh. 15 - Prob. 15.9ECh. 15 - Prob. 15.10E
Ch. 15 - Prob. 15.11ECh. 15 - Prob. 15.12ECh. 15 - Exercise 15.13 LO 4. 5 Direct material...Ch. 15 - Exercise 15.14 LO 4, 5 Direct material...Ch. 15 - Prob. 15.15ECh. 15 - Prob. 15.16ECh. 15 - Exercise 15.17 LO 9 Investment center analysis;...Ch. 15 - Prob. 15.18ECh. 15 - Problem 15.19 LO 4. 5 Calculate variable cost...Ch. 15 - Problem 15.20 LO 4. 5 Calculate variable cost...Ch. 15 - Problem 15.21 LO 4, 5 Direct labor...Ch. 15 - Problem 15.22 LO 4, 5 Direct labor...Ch. 15 - Problem 15.23 LO 5, 6 Fixed overhead...Ch. 15 - Case 15.25 LO 3 Performance reporting The chair of...Ch. 15 - Case 15.26 LO 3 Flexible budgeting One of the...Ch. 15 - Case 15.27 LO 4 Frequency of performance reporting...Ch. 15 - Case 15.28 LO 5 Rank the importance of eight...Ch. 15 - Case 15.29 LO 4. 5 Direct material variances-the...Ch. 15 - Case 15.30 LO 5 Evaluate the effects of erroneous...Ch. 15 - Prob. 15.31CCh. 15 - Case 15.32 The planning and control environment:...
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