Homework Answers
1. A favorable variance for a cost means that when compared to the budget, the actual cost is less than the budgeted cost.
Budgeted costs are usually set at higher side. If actual cost is less than the budgeted cost then it would mean that there is a cost benefit and favorable variance.
2. In preparing flexible budgets, the costs that remain constant in total are fixed costs. Those costs that change in total are variable costs.
Fixed costs remain fixed irrespective of the volume or units of output produced. Variable costs change in proportion to the change in the level of units of production.
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I ACG 2071 Extra Credit Assignment A favorable variance for a cost means that when compared...
A favorable variance for a cost means that when compared to the budget, the actual cost...
A favorable variance for a cost means that when compared to the budget, the actual cost is ________ than the budgeted cost.
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come...
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come from material costs that are higher or lower than expected, material usage that is not what was expected, higher or lower labor costs than expected, or more or less time spent to produce an item than expected. Overhead cost and volume variances are another cause for costs to be higher or lower than what was expected. The total manufacturing variance can be broken down...
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come...
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come from material costs that are higher or lower than expected, material usage that is not what was expected, higher or lower labor costs than expected, or more or less time spent to produce an item than expected. Overhead cost and volume variances are another cause for costs to be higher or lower than what was expected. The total manufacturing variance can be broken down...
At the start of 2018, X Company developed the following budgeted total cost function: $11.64X +...
At the start of 2018, X Company developed the following budgeted total cost function: $11.64X + $219,000, where X is number of units produced. Budgeted production for the year was 10,200 units. Actual total costs and actual production in 2018 were different than the budgeted amounts. The actual total cost function turned out to be $12.28X + $198,014, and actual production was 9,300 units. What was the 2018 flexible budget variance for total fixed cost [a positive number means a...
Multiple Choice $11,000 unfavorable. $141,046 favorable. $143,286 favorable. $163,846 favorable. $163,846 unfavorable. Bluecap Co. uses a...
Multiple Choice
$11,000 unfavorable.
$141,046 favorable.
$143,286 favorable.
$163,846 favorable.
$163,846 unfavorable.
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volume-number of units Denominator volume-percent of capacity Denominator volume-standard direct labor hours (DLHS) Budgeted variable factory overhead cost at denominator volume Total standard factory overhead rate per DLH 7,000 70% 42,000 $102,200 $ 15.10 During 2019, Bluecap worked 53,000 DLHs and manufactured 9,300 units. The actual factory...
QUESTION 8 In which of the following situations will the overhead volume variance be favorable? O...
QUESTION 8 In which of the following situations will the overhead volume variance be favorable? O When more units are produced than were originally planned O When actual overhead costs are less than the flexible budget When the predetermined overhead rate was set too low When there are units remaining in ending inventory QUESTION 9 Which of the following values is used in the calculations for both the controllable overh variance and the overhead volume variance? Overhead applied to production...
A variance analysis question for cost accounting that I am struggling with. I have parts of...
A variance analysis question for cost
accounting that I am struggling with. I have parts of it completed,
but there are some parts that I did not really understand. Could
you please take a look and help me? I really appreciate it! Thank
you very much! You may need to zoom in to see the numbers and
information for this question
Part 1: Calculate direct materials price and efficiency variances. Actual Costs Incurred Flexible Budget Budgeted Input Qt. Alloved for...
Choose the correct bolded choices to complete the sentences. The variable overhead cost variance is (favorable,...
Choose the correct bolded choices to complete the
sentences.
The variable overhead cost variance is (favorable,
unfavorable) because Longman actually spent (less,
more) than budgeted.
The variable overhead efficiency variance is (favorable,
unfavorable) because the actual hours used was
(more, less) than budgeted.
The fixed overhead cost variance is (favorable,
unfavorable) because Longman actually spent (less,
more) than budgeted for fixed overhead.
The fixed overhead volume variance is (favorable,
unfavorable) because Longman allocated (more,
less) overhead to jobs than the...
Extra Credit- Problems (1) - Protected View Saved to this PC View Help Mailings Review OSearch...
Extra Credit- Problems (1) - Protected View Saved to this PC View Help Mailings Review OSearch aces uses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing ACG 2071 - Extra Credit Assignment 1. The following information comes from the records of Sanders Co. for the current period. a) Compute the direct materials price and quantity variances, direct labor rate and efficiency variances and state whether the variance is favorable or unfavorable. Actual costs and...
The total factory overhead spending variance in 2019 (to the nearest whole dollar), based on a...
The total factory overhead spending
variance in 2019 (to the nearest whole dollar), based on a
three-variance breakdown (decomposition) of the total overhead
variance for Bluecap Co., was:
Multiple Choice
$3,200 favorable.
$11,440 unfavorable.
$15,040 favorable.
$17,280 favorable.
$17,440 unfavorable.
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volume-number of units Denominator volume-percent of capacity Denominator volume-standard direct labor hours (DLHS) Budgeted variable factory overhead cost at...
Multiple Choice
$11,000 unfavorable.
$141,046 favorable.
$143,286 favorable.
$163,846 favorable.
$163,846 unfavorable.
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volume-number of units Denominator volume-percent of capacity Denominator volume-standard direct labor hours (DLHS) Budgeted variable factory overhead cost at denominator volume Total standard factory overhead rate per DLH 7,000 70% 42,000 $102,200 $ 15.10 During 2019, Bluecap worked 53,000 DLHs and manufactured 9,300 units. The actual factory...
QUESTION 8 In which of the following situations will the overhead volume variance be favorable? O When more units are produced than were originally planned O When actual overhead costs are less than the flexible budget When the predetermined overhead rate was set too low When there are units remaining in ending inventory QUESTION 9 Which of the following values is used in the calculations for both the controllable overh variance and the overhead volume variance? Overhead applied to production...
A variance analysis question for cost
accounting that I am struggling with. I have parts of it completed,
but there are some parts that I did not really understand. Could
you please take a look and help me? I really appreciate it! Thank
you very much! You may need to zoom in to see the numbers and
information for this question
Part 1: Calculate direct materials price and efficiency variances. Actual Costs Incurred Flexible Budget Budgeted Input Qt. Alloved for...
Choose the correct bolded choices to complete the
sentences.
The variable overhead cost variance is (favorable,
unfavorable) because Longman actually spent (less,
more) than budgeted.
The variable overhead efficiency variance is (favorable,
unfavorable) because the actual hours used was
(more, less) than budgeted.
The fixed overhead cost variance is (favorable,
unfavorable) because Longman actually spent (less,
more) than budgeted for fixed overhead.
The fixed overhead volume variance is (favorable,
unfavorable) because Longman allocated (more,
less) overhead to jobs than the...
Extra Credit- Problems (1) - Protected View Saved to this PC View Help Mailings Review OSearch aces uses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing ACG 2071 - Extra Credit Assignment 1. The following information comes from the records of Sanders Co. for the current period. a) Compute the direct materials price and quantity variances, direct labor rate and efficiency variances and state whether the variance is favorable or unfavorable. Actual costs and...
The total factory overhead spending
variance in 2019 (to the nearest whole dollar), based on a
three-variance breakdown (decomposition) of the total overhead
variance for Bluecap Co., was:
Multiple Choice
$3,200 favorable.
$11,440 unfavorable.
$15,040 favorable.
$17,280 favorable.
$17,440 unfavorable.
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volume-number of units Denominator volume-percent of capacity Denominator volume-standard direct labor hours (DLHS) Budgeted variable factory overhead cost at...
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