Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 25C
1.
To determine
Concept Introduction:
Spending variance: It is the difference between the actual expense and the expected expense. If the actual expense is more than the budgeted expense, then it is considered unfavorable for the company. On the other hand, if the actual expense is less than the budgeted expense it is a favorable situation for any company.
To calculate: The spending variances for March.
2.
To determine
Concept Introduction:
Spending variance: It is the difference between the actual expense and the expected expense. If the actual expense is more than the budgeted expense, then it is considered unfavorable for the company. On the other hand, if the actual expense is less than the budgeted expense it is a favorable situation for any company.
To discuss: The way in which original cost control report differs from the spending variance report.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is
trying to decide how to allocate the costs of the Admissions Department, the Registrar's Department, and the Computer Services
Department. The comptroller has compiled the following data for the year just ended.
Department
Admissions
Registrar
Computer Services
Division
Liberal Arts
Annual Cost
$136,000
233,000
492,000
Sciences
Business Administration
Budgeted
Budgeted
Enrollment Credit Hours
2,900
1,750
1,650
49,000
42,250
36,250
Required:
1. Distribute the departmental costs to the college's three divisions based on the allocation base given.
2. Choose the better allocation base for distributing the cost to the following departments:
Department and Allocation Base
Planned Courses
Requiring
Computer Work
Complete this question by entering your answers in the tabs below.
Admissions (enrollment)
Registrar (credit hours)
Computer Services (courses requiring…
South Hampton University is preparing its budget for the upcoming academic year. This is a specializedprivate university that charges fees for all degree courses. Currently, 30,000 students are enrolled oncampus. However, the university is forecasting a 5 percent growth in student numbers in the comingyear, despite an increase in fees to $3,000 per subject. The following additional information has beengathered from an examination of university records and conversations with university managers: South Hampton is planning to award scholarships to 200 students, which will cover their fees. The average class has 80 students, and the typical student takes 4 subjects per semester. SouthHampton operates 2 semesters per year. The average academic staff salary is $120,000 per annum including on-costs. South Hampton’s academic staff are evaluated on the basis of teaching, research, administration, and professional/community service. Each of the academic staff teaches the equivalent of…
Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is
trying to decide how to allocate the costs of the Admissions Department, the Registrar's Department, and the Computer Services
Department. The comptroller has compiled the following data for the year just ended.
Annual Cost
Department
Admissions
Registrar
Computer Services
$130, 000
221,000
468,000
Planned Courses
Budgeted
Budgeted
Credit Hours
Requiring
Computer Work
Division
Enrollment
Liberal Arts
Sciences
2,300
43,000
37,750
31,750
25
1,450
37
Business Administration
1,350
37
Required:
1. Distribute the departmental costs to the college's three divisions based on the allocation base given.
2. Choose the better allocation base for distributing the cost to the following departments:
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prev
1 of 7
Next >
hulu
Chapter 9 Solutions
Managerial Accounting
Ch. 9 - Prob. 1QCh. 9 - What is a flexible budget and how does it differ...Ch. 9 - Prob. 3QCh. 9 - Why is it difficult to interpret a difference...Ch. 9 - What is an activity variance and what does it...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Prob. 9QCh. 9 - Prob. 10Q
Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 2F15Ch. 9 - Prob. 3F15Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 -
L09-1, LO9-2, LO9-3
Adger Corporation is a...Ch. 9 - Prob. 8F15Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 10F15Ch. 9 - Prob. 11F15Ch. 9 - Prob. 12F15Ch. 9 - Prob. 13F15Ch. 9 - Prob. 14F15Ch. 9 - Prob. 15F15Ch. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 -
EXERCISE 9-3 Revenue and Spending Variances...Ch. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24CCh. 9 - Prob. 25CCh. 9 - Prob. 26C
Knowledge Booster
Similar questions
- The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year’s program. Advertising alternatives include television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown: To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized. If the promotional budget is limited to $18,200, how many commercial messages should be run on each medium to maximize total audience contact? What is the allocation of the budget among the three media, and what is the total audience reached? By how much would audience contact increase if an extra $100 were allocated to the promotional budget?arrow_forward1. The Copy Center is a service department for the operating departments Foster School of Business, which includes the Accounting Department. Rates for usage of the Copy Center for the Accounting Department for 2020 are below: Fixed Cost $43,000 Budgeted Variable Cost $0.38 per page These budgeted costs are used to determine the transfer price that other departments will pay for their usage of the Copy Center Service Department. Due to an error in the budgeted the price of ink, the Copy Center service department now incurs a cost of $0.74 per page. How much should the Foster Accounting Department be charged for the year if it printed 500 copies during 2020? 2. Chipotle is deciding whether to continue making guacamole in the restaurant or buy it from an outside supplier. Chipotle's cost information is as follows (unit is a tub full of guacamole): Cost per Unit Direct Materials $9.78 Direct Labor $4.14 Variable Overhead $2.41 Worker Salary $6.59 Depreciation of…arrow_forwardHudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows: User of Service Library Computing Services Liberal Arts Sciences Provider of Service Computing Services 20% Library Computing Services Library 65% 35% The budgeted costs in the two service departments for the year are as follows: $1,090,000 550,000 30% 50% Required: 1. Use the step-down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences departments. (Do not round intermediate calculations.) Allocation of Computing Service costs Allocation of Library costs Total costs allocated to each department Liberal Arts Sciencesarrow_forward
- Q) South Hampton University is preparing its budget for the upcoming academic year. This is a specialised private university that charges fees for all degree courses. Currently, 30,000 students are enrolled on campus. Howerver, the university is forecasting a 5 percent growth in student numbers in the coming year, despite an increase in fees to $3,000 per subject. The following additional information has been gathered from an examination of university records and conversations with university managers: (i) South Hampton is planning to award scholarships to 200 students, which will cover their fees. (ii) The average class has 80 students, and the typical student takes 4 subjects per semester. South Hampton operates 2 semester per year. (iii) The average academic staff salary is $120,000 per annum including on-costs. (iv) South Hampton's academic staff are evaluated on the basis of teaching, research, administration and professional/community service. Each of the academic…arrow_forwardVariance During the winter months, the New York City department of Social Services purchases blankets for use at shelters throughout the city. In previous years, the department had purchased blankets for 15 different shelters at a price of $7.50 per blanket, expecting that each shelter would use 14 new blankets. The department budgeted a similar amount this year; however, at the end of the year they discovered that they had spent more on blankets than anticipated. They had actually spent $1,989, purchased 234 blankets, and provided blankets to 18 shelters. Fill in the following blanks: [Note: Be sure to indicate unfavorable variances with a negative sign, e.g. -54.67. Do not use parentheses. Round your numbers to TWO decimal places, e.g. 54.12.] A) The volume variance is $ _________________ B) The quantity variance is $ _________________ C) The price variance is $ ____________________ D) Of the three variances you calculated, which one contributed the most to the total variance? 1.…arrow_forwardSouth Hampton University is preparing its budget for the upcoming academic year. Thisis a specialised private university that charges fees for all degree courses. Currently, 30 000students are enrolled on campus. However, the university is forecasting a 5 per cent growthin student numbers in the coming year, despite an increase in fees to $3 000 per subject. Thefollowing additional information has been gathered from an examination of university recordsand conversations with university managers:1. South Hampton is planning to award scholarships to 200 students, which will covertheir fees.2. The average class has 80 students, and the typical student takes 4 subjects persemester. South Hampton operates 2 semesters per year.3. The average academic staff salary is $120 000 per annum including on-costs.4. South Hampton’s academic staff are evaluated on the basis of teaching, research,administration and professional/community service. Each of the academic staffteaches the equivalent of three…arrow_forward
- South Hampton University is preparing its budget for the upcoming academic year. Thisis a specialised private university that charges fees for all degree courses. Currently, 30 000students are enrolled on campus. However, the university is forecasting a 5 per cent growthin student numbers in the coming year, despite an increase in fees to $3 000 per subject. Thefollowing additional information has been gathered from an examination of university recordsand conversations with university managers:1. South Hampton is planning to award scholarships to 200 students, which will covertheir fees.2. The average class has 80 students, and the typical student takes 4 subjects persemester. South Hampton operates 2 semesters per year.3. The average academic staff salary is $120 000 per annum including on-costs.4. South Hampton’s academic staff are evaluated on the basis of teaching, research,administration and professional/community service. Each of the academic staffteaches the equivalent of three…arrow_forwardHudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows: User of Service Library Computing Services Liberal Arts Sciences Library Computing Services Provider of Service Computing Library Services 10% The budgeted costs in the two service departments for the year are as follows: Provider of Service 60% 40% Library Computing Services Total $700,000 270,000 Required: 1. Use the direct method to allocate the budgeted costs of the Library and Computing Services Department to the college's Liberal Arts and Sciences departments. (Do not round intermediate calculations.) 20% 70% Liberal Arts Sciencesarrow_forwardWeek 6 South Hampton University is preparing its budget for the upcoming academic year. This is a specialised private university that charges fees for all degree courses. Currently, 30,000 students are enrolled on campus. However, the university is forecasting a 5 per cent growth in student numbers in the coming year, despite an increase in fees to $3,000 per subject. The following additional information has been gathered from an examination of university records and conversations with university managers: South Hampton is planning to award scholarships to 200 students, which will cover their fees. The average class has 80 students, and the typical student takes 4 subjects per semester. South Hampton operates 2 semesters per year. The average academic staff salary is $120,000 per annum including on-costs. South Hampton’s academic staff are evaluated on the basis of teaching, research, administration and professional/community service. Each of the academic staff…arrow_forward
- (a) Al Khoud Training Center (KTC) is an industrial training company operating in Muscat Knowledge Oasis. Following increased competition and customer expectations, KTC has been forced to revisit its operational strategy and its quality standards. The following budgeted data for 2022 are available: Number of Trainees 5,500 Operating Income OMR24,000 Budgeted Variable Cost per Trainee Trainee's Support Service Training Materials Foods Budgeted Fixed Cost per Training 14,800 13,000 OMR16 Facilities OMR21 Salaries OMR20 OMR10 Miscellaneous Products & Services Based on the customer survey it conducted, KTC has learned that several improvements to its products and services are required. The improvements would provide the following impacts: Increase in the Number of Trainees 30% Increase in the Total Variable Costs 25% Increase in the Total Fixed Costs 25% You are required to: (1) Calculate the budgeted revenue per trainee based on the available data. (i) Assuming that budgeted revenue per…arrow_forwardThe Document Creation Center (DCC) for Alegis Corp. provides photocopying and document services for three departments in the St. Paul office. The following budget has been prepared for the year. Available capacity Budgeted usage: Software Development Training Management Cost equation 13,000,000 pages 2,600,000 pages 4,875,000 pages 3,900,000 pages 55,000+ $0.03 per page If DCC uses a dual rate for allocating its costs based on usage, how much cost will be allocated to the Software Development Department?arrow_forwardWestern State University (WSU) is preparing its master budget for the upcoming academic year. Currently, 16,500 students are enrolled on campus; however, the admissions office is forecasting a 8 percent growth in the student body despite a tuition hike to $85 per credit hour. The following additional information has been gathered from an examination of university records and conversations with university officials: • WSU is planning to award 200 tuition-free scholarships. " ⚫ The average class has 20 students, and the typical student takes 15 credit hours each semester. Each class is three credit hours. WSU's faculty members are evaluated on the basis of teaching, research, and university and community service. Each faculty member teaches five classes during the academic year. Required: 1. Prepare a tuition revenue budget for the upcoming academic year. 2. Determine the number of faculty members needed to cover classes. 3. Assume there is a shortage of full-time faculty members. Select…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...
Statistics
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Cengage Learning