Enigma Ltd has prepared a budget based on standard costs. It is shown below together with the
Question:
Enigma Ltd has prepared a budget based on standard costs. It is shown below together with the actual results.
Required
(a) Prepare a flexed budget for 4250 units
(b) Calculate:
(i) Total cost variance
(ii) Expenditure variance
(iii) Direct material variance
(iv) Direct labour variance.
(c) Reconcile the actual cost incurred with the budgeted costs, using the variances calculated in (b).
Transcribed Image Text:
No. of units Direct materialubes Mas Direct labour Variable overhead Fixed overhead Total costs 409 Budget 4000 20 000 CARTAS 46.000 10 000 50.00000 126 000 QHY Actual 4250 23 400 47 236 10 500 10 500 50 000 131 136
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
a Prepare a flexed budget for 4250 units A flexed budget adjusts the budgeted amounts based on the actual activity level In this case the actual activity level is 4250 units To prepare the flexed budg...View the full answer
Answered By
Sayee Sreenivas G B
I have extensive tutoring experience, having worked as a private tutor for over three years. I have tutored students from different academic levels, including high school, undergraduate, and graduate levels. My tutoring experience has taught me to be patient, attentive to student needs, and effective in communicating difficult concepts in simple terms.
I have a strong background in statistics, probability theory, data analysis, and data visualization. I am proficient in using statistical software such as R, Python, and SPSS, which are commonly used in academic research and data analysis. Additionally, I have excellent communication and interpersonal skills, which enable me to establish rapport with students, understand their learning styles, and adapt my teaching approach to meet their needs.
I am passionate about teaching and helping students achieve their academic goals.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The 20 20-in. square plate shown weighs 56 lb and is supported by three vertical wires. Determine the weight and location of the lightest block that should be placed on the plate if the tensions in...
-
A cyclist uses a stationary trainer during the winter to keep in shape. Knowing that she pushes down on her pedal with a velocity of 26 in./s that increases at a rate of 2 in./s 2 , determine the...
-
Underpar Ltd has prepared a budget based on standard costs. It is shown below together with the actual results. Required (a) Prepare a flexed budget for 6300 units. (b) Calculate: (i) Total cost...
-
Label each transition in this flowchart Label each transition in this flowchart as a chemical change or a physical change. 8 chemical physical 00
-
Summarized versions of Nachos Corporations financial statements are given for two recent years. Requirement Determine the missing amounts denoted by theletters. 2012 2011 Income Statement (In...
-
Bob said, "We use the normal distribution to set the control limits for the x chart because samples from processes follow a normal distribution." Is Bob right? Explain.
-
(a) Does it make sense to talk about a dielectric constant for a conductor? If so, what value does the constant have? (b) What is the breakdown threshold for a conductor?
-
Certain underlying considerations have had an important impact on the development of generally accepted accounting principles. Following is a list of these underlying considerations, as well as a...
-
1. What is Stock Market Analysis. Explain in Detail? 2. Discuss about Nature and Scope of Stock Market Analysis. 3. Discuss about Basics of Stock Market Analysis. 4. What is Investment? Explain in...
-
A company's standard cost statement shows the following variances: (F favourable; A adverse). What is the effect in total of variances 3, 6 and 9 on the profit of the company? A. $1175 (A) B. $1175...
-
A company makes a single product which requires two types of raw material: ionium and zetonium. The standard cost of materials to produce one unit of the product is shown: 100 units of the product...
-
A laser produces an average power of 7.0W in a 1.0-mm-diameter beam. Find (a) the average intensity (b) the peak electric field of the laser light.
-
Given the following estimates for all activities of a project (in days) Activity Optimistic A B C D E F 4 2 2 3 5 2 Most Likely 7 5 5 8 7 Pessimistic 10 6 8 a 17 12 The Critical Path is A-B-E-F. What...
-
You have identified four root causes in an investigation, and you have presented them to management. The root causes are employee training needs improvement, procedure is difficult to use, labels...
-
pick a country other than the U.S. and investigate its state regarding internal and external balance. Which quadrant is the economy located on the Swan Diagram?
-
Looking-forward Productions is considering a project with an initial start-up cost of RM960,000. The firm maintains a debt-equity ratio of 0.50 and has a flotation cost of debt of 6.8 percent and a...
-
Bilal is the wealthy owner of a chain of upscale restaurants in southern Ontario. He lives on a very large estate in Caledon, north of Toronto, and his main corporate offices are in Toronto....
-
How does godfathering work? Who decides price? How do other firms in the oligopoly react to the price leader? Why?
-
The Heese Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Heeses purchased and used 101,000 pounds of potatoes at a price of $ 0.70 per...
-
Leighton, Inc., incurred costs for the following items. 1. Janitorial services in the production facility 2. Personnel department supplies 3. Shipping costs for raw materials purchased from a...
-
The income statement from Fords annual report appears as follows in summary form. (This information was obtained from the companys Web site,www.ford.com.) Required: a. The financial information in...
-
The balance in Tahoma Companys raw materials inventory account was $150,000 at the beginning of June and $135,000 at the end of June. Raw materials purchased during the month totaled $50,000. Tahoma...
-
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Cash...
-
Manufacturing overhead cost is allocated at the rate of $ 6 per direct labour hour. Actual manufacturing overhead costs for September amount to $ 1 2 , 0 0 0 . What is the amount of allocated...
-
Each pallet of 3 M s product in the warehouse of Laurel Canyon Inc. holds $ 5 , 7 7 7 of product at Laurel Canyon Inc. ' s cost of goods ( your selling price to Ms . Mitchell ) , which she sells at a...
Study smarter with the SolutionInn App