Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 23, Problem 2PB
Flexible
I’m Really Cold Coat Company makes women’s and men’s coats. Both products require filler and lining material. The following planning information has been made available:
I’m Really Cold Coat Company does not expect there to be any beginning or ending inventories of filler and lining material. At the end of the budget year, I’m Really Cold Coat Company experienced the following actual results:
The expected beginning inventory and desired ending inventory were realized.
Instructions
- 1. Prepare the following variance analyses for both coats and the total, based on the actual results and production levels at the end of the budget year:
- A. Direct materials price, quantity, and total variance.
- B. Direct labor rate, time, and total variance.
- 2. Why are the standard amounts in part (1) based on the actual production at the end of the year instead of the planned production at the beginning of the year?
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Flexible budgeting and variance analysisI Love My Chocolate Company makes dark chocolate and lightchocolate. Both products require cocos and sugar. The followingplanning information has been made available: (8.PNG)
I Love My Chocolate Company does not expect there to be anybeginning or ending inventories of cocoa or sugar. At the end of thebudget year, I Love My Chocolate Company had the following actualresults: (9.PNG)
Instructions1. Prepare the following variance analyses for both chocolates and thetotal, based on the actual results and production levels at the end of thebudget year:
a. Direct materials price, quantity, and total varianceb. Direct labor rate, time, and total variance2. Why are the standard amounts in part (1) based on the actualproduction for the year instead of the planned production for the year?
Flexible Budgeting and Variance Analysis
I'm Really Cold Coat Company makes women's and men's coats. Both products require filler and lining material. The following planning information has been made available:
Standard Amount per Unit
Women’s Coats
Men’s Coats
Standard Price per Unit
Filler
4.0 lbs.
5.20 lbs.
$2.00 per lb.
Liner
7.00 yds.
9.40 yds.
8.00 per yd.
Standard labor time
0.40 hr.
0.50 hr.
Women’s Coats
Men’s Coats
Planned production
5,000 units
6,200 units
Standard labor rate
$14.00 per hr.
$13.00 per hr.
I'm Really Cold Coat Company does not expect there to be any beginning or ending inventories of filler and lining material. At the end of the budget year, I'm Really Cold Coat Company experienced the following actual results:
Women’s Coats
Men’s Coats
Actual production
4,400
5,800
Actual Price per Unit
Actual Quantity Purchased and Used
Filler
$1.90 per lb.
48,000
Liner…
Chapter 23 Solutions
Financial And Managerial Accounting
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