Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 15, Problem 4E
To determine
To classify the given variances as favorable or unfavorable.
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Students have asked these similar questions
QUESTION 8
V
The standard price of materials is $3.6 per pound and the standard quantity allowed for actual output is 5620 pounds. If the
actual quantity purchased and used was 5070 pounds, and the actual price per pound was $4.7, the direct materials quantity
variance is
Indicate whether the variance is F (favorable) or U (Unfavorable) by placing the letter next to the amount. For example, if your answer is 1,000 Favorable,
answer 1000F, Do not use a space between the amount and the letter. Show your answer as an absolute number (no negative signs)
QUESTION 9
Req 1
Req 2A
Req 2B
Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use DCdesserts's
conventional flexible budget.
Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect
(i.e., zero variance).
Variance
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Exercise 8-3A (Algo) Determining amount and type (favorable vs. unfavorable) of variance LO 8-2
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).
Sales price
Sales revenue
Cost of goods sold
Item
Material purchases at 5,000 pounds
Materials usage
Production volume
Wages at 4,000 hours
Labor usage at $16 per hour
Research and development expense
Selling and administrative expenses
69
$
$
$
$
$
69
$
69
$
Budget
656 $
583,000 $
389,500 $
278,000 $
184,500 $
980 units
60,600 $
96,300 $
25,000
53,500
$
Actual
528
606,000
363,000
284,500
181,000
915 units
59,000
97,600
29,500
43,000
Variance
units
Effect
Chapter 15 Solutions
Survey Of Accounting
Ch. 15 - 1. Pam Kelly says she has no faith in budgets. Her...Ch. 15 - 7. What is a responsibility center?Ch. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - Prob. 5QCh. 15 - 3. When are sales and cost variances favorable and...Ch. 15 - 4. Joan Mason, the marketing manager for a large...Ch. 15 - Prob. 8QCh. 15 - Prob. 9QCh. 15 - Prob. 10Q
Ch. 15 - Prob. 11QCh. 15 - 9. Minnie Divers, the manager of the marketing...Ch. 15 - 6. How do responsibility reports promote the...Ch. 15 - Prob. 14QCh. 15 - Prob. 15QCh. 15 - Prob. 16QCh. 15 - 12. How can a residual income approach to...Ch. 15 - Prob. 18QCh. 15 - Exercise 9-6A Evaluating a profit center Helen...Ch. 15 - Prob. 2ECh. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Exercise 8-3A Determining amount and type...Ch. 15 - Prob. 6ECh. 15 - Exercise 8-4A Determining sales and variable cost...Ch. 15 - Exercise 8-5A Determining flexible budget...Ch. 15 - Exercise 8-9A Responsibility for the fixed cost...Ch. 15 - Prob. 10ECh. 15 - Exercise 8-7A Evaluating a decision to increase...Ch. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Exercise 9-9A Residual income Climax Corporation...Ch. 15 - Residual income Gletchen Cough Drops operates two...Ch. 15 - Prob. 16ECh. 15 - Prob. 17ECh. 15 - Prob. 18PCh. 15 - Prob. 19PCh. 15 - Prob. 20PCh. 15 - Prob. 21PCh. 15 - Problem 9-20A Return on investment Sorrento...Ch. 15 - Problem 9-21A Comparing return on investment and...Ch. 15 - Comparing return on investment and residual income...Ch. 15 - ATC 8-1 Business Applications Case Static versus...Ch. 15 - Prob. 2ATCCh. 15 - Prob. 3ATCCh. 15 - ATC 9-1 Business Applications Case Analyzing...Ch. 15 - Prob. 5ATC
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- Variances Refer to Cornerstone Exercise 9.6. Required: 1. Calculate the variable overhead spending variance using the formula approach. (If you compute the actual variable overhead rate, carry your computations out to five significant digits and round the variance to the nearest dollar.) 2. Calculate the variable overhead efficiency variance using the formula approach. 3. Calculate the variable overhead spending variance and variable overhead efficiency variance using the three-pronged graphical approach. 4. What if 26,100 direct labor hours were actually worked in February? What impact would that have had on the variable overhead spending variance? On the variable overhead efficiency variance? Standish Company manufactures consumer products and provided the following information for the month of February: Required: 1. Calculate the fixed overhead spending variance using the formula approach. 2. Calculate the volume variance using the formula approach. 3. Calculate the fixed overhead spending variance and volume variance using the three-pronged graphical approach. 4. What if 129,600 units had actually been produced in February? What impact would that have had on the fixed overhead spending variance? On the volume variance?arrow_forwardExercise 15-5A (Algo) Determining amount and type (favorable vs. unfavorable) of variance LO 15-3 Required Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U): (Select "None" if there is no effect (i.e., zero variance).) Item Sales price Sales revenue Cost of goods sold Material purchases at 5,000 pounds Materials usage Production volume Wages at 4,000 hours Labor usage at $16 per hour Research and development expense Selling and administrative expenses Budget 529 $ $ 608,000 $364,000 $ 286,000 182,000 lbs 920 units $ 59,100 $ 97,800 $ 31,000 $ 44,000 Actual $ 658 $ 584,000 $ 391,000 $ 279,000 $ $ $ $ 186,000 lbs 990 units 60,800 96,400 26,000 55,000 Variance lbs units For Uarrow_forwardData Table AC × AQ SC × AQ SC × SQ $0.65 per pounds $0.30 per pounds $0.30 per pound × × × 7,600 pounds 7,600 pounds 7,200 pounds $4,940 $2,280 $2,160 Cost Efficiency Variance Variance $2,660 U $120 U . Record Smithson's direct materials journal entries. Assume purchases were made on account. 2. Explain what management will do with this variance information.arrow_forward
- QUESTION 7 The standard price of materials is $4.6 per pound and the standard quantity allowed for actual output is 5230 pounds. If the actual quantity purchased and used was 5700 pounds, and the actual price per pound was $5.9, the direct materials price variance is Indicate whether the variance is F (favorable) or U (Unfavorable) by placing the letter next to the amount. For example, if your answer is 1,000 Favorable, answer 1000F, Do not use a space between the amount and the letter. Show your answer as an absolute number (no negative signs) Sarrow_forwardQuestion - 3: Multiple- Choice Questions The direct and indirect variances -:The materials price variance is -1 The standard costs of materials and labor for this product follow: Direct materials 11 lbs. @ $7.95 Direct labor 4 hrs. @ $9.40 During the first month of the year, 20,100 boards were produced. Information conceming actual costs and usage of materials and labor follows: Materials used 220,400 lbs. @ S8.05 Direct labor 79,900 hrs.; total cost: $759,050 $22,250 U (O $22,040 U O $771,400 U $650,180 U O PSC ENarrow_forward11.19 AM.jpeg A Edit & Create v QUESTION 1 Sea Eagle is a kayak manufacturer. For July 2021, Sea Eagle had the following standard costs for manufacturing one kayak: Standards per kayak Direct materials 4 kilograms of material at $10 per kilogram Direct manufacturing labour 0.5 hour of labour at $18 per hour The following data were compiled through the accounting system regarding actual performance in July 2021: Actual output units produced 5,000 kayaks Kilograms of direct materials purchased 18,000 kilograms Direct materials purchase price per kilogram $11 Kilograms of direct materials used 16,000 kilograms $36,900 Direct manufacturing labour costs 1,800 hours Actual hours of labour used $20.50 Labour rate per hour Click Save and Submit to save and submit. Click Save All Answers to save all answers. 11:26 30°C Rain showers 8/18/2 to searcharrow_forward
- Problem 12: MIX AND YIELD VARIANCE BBB produced face powder. BBB has in its budget the following standard for one kilo of face powder: Ingredients Input Standard QTY Grams Standard Unit Standard Total Price 200 700 cost P600 P3 Y P4 P2,800 100 P5 P500 Total 1,000 P3,900arrow_forwardCalculate the value of A. Enter Favourable variances as a positive number and Unfavourable variances as a negative number. 1 2 Units 3 4 Less: Total Variable Costs 5 Direct Materials Revenues 6 Direct Labour 7 Variable Manuf. OH. 8 Total Variable Costs 9 Total Contribution Margin 10 Total Fixed Costs 11 Operating Income $ B Static 120,000 C Actual $ D Flex Budget 80,000 E Flex Budget Variance $70,000 F $20,000 U $20,000 Uarrow_forward1. Prepare a Level 2 Variance Analysis and answer the following questions. Actual Results Static Budget 1,020 units 1,000 units Units Revenues Total Var Cost Total Contr Margin Fixed Cost a. b. asup C. d. e. f. 100 woll $110,160 $ 74,460 $100,000 $ 70,000 Iban Mato Xmaldor $ 19,600 Operating Income $ 16,100 $ 10,000 shot Describe precisely the meaning of the following variances from this Performance Report: Flexible Budget Variance for Revenues palodi sat osup a'lood pl BV smi vispicyng pors $ 20,000 Flexible Budget Variance for Tot Variable Cost Flexible Budget Variance for Fixed Cost Sales Volume Variance for Revenues Sales Volume Variance for Tot Variable Cost Sales Volume Variance for Fixed Cost Barrow_forward
- Problem 10-13 (Algo) Basic Variance Analysis; the Impact of Variances on Unit Costs [LO10-1, LO10-2, LO10-3] Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Unit Actual Cost per Unit Direct materials: Standard: 1.90 feet at $3.40 per foot $ 6.46 Actual: 1.85 feet at $3.80 per foot $ 7.03 Direct labor: Standard: 0.95 hours at $20.00 per hour 19.00 Actual: 1.00 hours at $19.50 per hour 19.50 Variable overhead: Standard: 0.95 hours at $7.00 per hour 6.65 Actual: 1.00 hours at $6.60 per hour 6.60 Total cost per unit $ 32.11 $ 33.13 Excess of actual cost over standard cost per unit $ 1.02 The production superintendent was pleased when he saw this report and commented: “This $1.02 excess cost is well within the 4 percent limit management has set for acceptable variances. It's obvious…arrow_forwardDATA Resources' requirements, standard pounds per unit Resources' standard price, per pound Units produced Resources used for production, pounds 2.5 $3.35 15,000 36,900 $3.55 Resources' actual price, per pound Using formulas and cell references, perform the required analysis, and input your an: Amount column. Select the corresponding type of variance in the dropdowns in cells results for the green entry cells (C15:C17) into the appropriate fields in CNOWV2 for Amount |Favorable or Unfavorable a. Direct materials price variance b. Direct materials quantity variance c. Direct materials cost variance Favorable or Unfavorable Favorable or Unfavorablearrow_forwardProblem-12.14 The following are actual cost and variances for direct materials and direct labour for the month of March 2002: Actual Variances Cost Unfavorable Favorable Rs. Rs. Rs. Direct Material 450,000 Price variance 35,000 Quantity Variance 25,000 Direct Labour 800,000 Rate variance 22.500 Efficiency variance 52,500 Required: Standard cost of direct matenal and direct labour Entries in the general journal to record the above information and to close the variance accountsarrow_forward
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