Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 7, Problem 7.22E

Flexible budget. Bryant Company’s budgeted prices for direct materials, direct manufacturing labor and direct marketing (distribution) labor per attaché case are $43, $6, and $13, respectively. The president is pleased with the following performance report:

Chapter 7, Problem 7.22E, Flexible budget. Bryant Companys budgeted prices for direct materials, direct manufacturing labor

Actual output was 10,000 attaché cases. Assume all three direct-cost items shown are variable costs.

Required

Is the president’s pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget.

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You are working as Executive Assistant to the Chairman in Bharat Gears, an automotive company in Chennai. The following data has been presented to you for interpretation to be given to the Chairman explaining to him the department's responsibility for deviation of performance. Prepare a Flexible budget and show who is responsible for deviation of performance. This is one month's data. Static Budget in Output Units Actual Output Units produced and sold. Budgeted Selling Price per unit of Output Budgeted Variable Costs per unit of Output Budgeted Fixed Costs Per Month Actual Revenue Actual Variable Costs Favorable Variance in Fixed Costs 25,000 23,000 Rs 40.00 Rs 25.00 Rs 2,00,000.00 Rs 8,74,000.00 Rs 6,30,000.00 Rs 5,000.00 Although output units sold exceeded expectations, operating income did not. Assume that there was no beginning or ending inventory. You thought to analyze the situation. Use F for Favourable and U for Unfavourable.
Bryant ​Company's budgeted prices for direct​ materials, direct manufacturing​ labor, and direct marketing​ (distribution) labor per​ attaché case are $39​, $6​, and $11​, respectively. The president is pleased with the following performance​ report: LOADING... ​(Click the icon to view the performance​ report.)   Actual output was 10,000 ​attaché cases. Assume all three​ direct-cost items above are variable costs.   Requirement Is the​ president's pleasure​ justified? Prepare a revised performance report that uses a flexible budget and a static budget.   Prepare a revised performance report that uses a flexible budget and a static budget. Begin with the actual​ results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable​ (F) or unfavorable​ (U).​ (For variances with a​ $0 balance, make sure to enter​ "0" in the appropriate field. If the variance is​ zero, do not select a​ label.)     Actual   Results Output…
Flexible budget. Bryant Company’s budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are $43, $6, and $13, respectively. The president is pleased with the following performance report

Chapter 7 Solutions

Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)

Ch. 7 - How does variance analysis help in continuous...Ch. 7 - Why might an analyst examining variances in the...Ch. 7 - Prob. 7.13QCh. 7 - When inputs are substitutable, how can the direct...Ch. 7 - Benchmarking against other companies enables a...Ch. 7 - Metal Shelf Companys standard cost for raw...Ch. 7 - All of the following statements regarding...Ch. 7 - Amalgamated Manipulation Manufacturings (AMM)...Ch. 7 - Atlantic Company has a manufacturing facility in...Ch. 7 - Basix Inc. calculates direct manufacturing labor...Ch. 7 - Flexible budget. Sweeney Enterprises manufactures...Ch. 7 - Flexible budget. Bryant Companys budgeted prices...Ch. 7 - Flexible-budget preparation and analysis. Bank...Ch. 7 - Flexible budget, working backward. The Clarkson...Ch. 7 - Flexible-budget and sales volume variances....Ch. 7 - Price and efficiency variances. Sunshine Foods...Ch. 7 - Materials and manufacturing labor variances....Ch. 7 - Direct materials and direct manufacturing labor...Ch. 7 - Price and efficiency variances, journal entries....Ch. 7 - Materials and manufacturing labor variances,...Ch. 7 - Journal entries and T-accounts (continuation of...Ch. 7 - Price and efficiency variances, benchmarking....Ch. 7 - Static and flexible budgets, service sector....Ch. 7 - Flexible budget, direct materials, and direct...Ch. 7 - Variance analysis, nonmanufacturing setting. Joyce...Ch. 7 - Comprehensive variance analysis review. Ellis...Ch. 7 - Possible causes for price and efficiency...Ch. 7 - Material-cost variances, use of variances for...Ch. 7 - Direct manufacturing labor and direct materials...Ch. 7 - Direct materials efficiency, mix, and yield...Ch. 7 - Direct materials and manufacturing labor...Ch. 7 - Direct materials and manufacturing labor...Ch. 7 - Use of materials and manufacturing labor variances...Ch. 7 - Direct manufacturing labor variances: price,...Ch. 7 - Direct-cost and selling price variances. MicroDisk...Ch. 7 - Variances in the service sector. Derek Wilson...Ch. 7 - Prob. 7.47P
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