New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
managerial accounting

Fundamental Managerial Accounting Concepts 6th Edition Edmonds, Tsay, olds - Solutions

When are sales and cost variances favorable and unfavorable?
Joan Mason, the marketing manager for a large manufacturing company, believes her unfavorable sales volume variance is the responsibility of the production department. What production circumstances that she does not control could have been responsible for her poor performance?
When would variable cost volume variances be expected to be unfavorable? How should unfavorable variable cost volume variances be interpreted?
What factors could lead to an increase in sales revenues that would not merit congratulations to the marketing manager?
With respect to fixed costs, what are the consequences of the actual volume of activity exceeding the planned volume?
How are flexible budget variances determined? What causes these variances?
Minnie Divers, the manager of the marketing department for one of the industry’s leading retail businesses, has been notified by the accounting department that her department experienced an unfavorable sales volume variance in the preceding period but a favorable sales price variance. Based on
What three attributes are necessary for establishing the best standards? What information and considerations should be taken into account when establishing standards?
What are the three ranges of difficulty in standard setting? What level of difficulty normally results in superior employee motivation?
So many variances, exclaimed Carl, a production manager with Bonnyville Manufacturing. “How do I determine the variances that need investigation? I can’t possibly investigate all of them.” Which variances will lead to useful information?
What is the primary benefit associated with using a standard cost system?
A processing department of Carmine Corporation experienced a high unfavorable materials quantity variance. The plant manager initially commented, “The best way to solve this problem is to fire the supervisor of the processing department.” Do you agree? Explain.
Sara Anderson says that she is a busy woman with no time to look at favorable variances. Instead, she concentrates solely on the unfavorable ones. She says that favorable variances imply that employees are doing better than expected and need only quick congratulations. In contrast, unfavorable
What two factors affect the total materials and labor variances?
Who is normally responsible for a materials price variance? Identify two factors that may be beyond this individual’s control that could cause an unfavorable price variance.
John Jamail says that he doesn’t understand why companies have labor price variances because most union contracts or other binding agreements set wage rates that do not normally change in the short term. How could rate variances occur even when binding commitments hold the dollar per hour rate
Which individuals are normally held responsible for labor usage variances?
What is the primary cause of an unfavorable fixed cost volume variance?
What is the primary cause of a favorable fixed cost spending variance?
Classifying variances as favorable or unfavorableRequiredIndicate whether each of the following variances is favorable or unfavorable. The first one has been done as an example.
Determining amount and type (favorable vs. unfavorable) of varianceRequiredCompute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U).
Preparing master and flexible budgets Sexton Manufacturing Company established the following standard price and cost data.Sexton planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units. Requireda. Prepare the pro forma income statement in contribution format
Determining sales and variable cost volume variancesRequiredUse the information provided in Exercise 8-3A.a. Determine the sales and variable cost volume variances.b. Classify the variances as favorable (F) or unfavorable (U).c. Comment on the usefulness of the variances with respect to performance
Determining flexible budget variances Use the standard price and cost data provided in Exercise 8-3A. Assume that the actual sales price is $7.65 per unit and that the actual variable cost is $4.25 per unit. The actual fixed manufacturing cost is $2,500, and the actual selling and administrative
Using a flexible budget to accommodate market uncertainty According to its original plan, Darey Consulting Services Company would charge its customers for service at $125 per hour in 2011. The company president expects consulting services provided to customers to reach 45,000 hours at that rate.
Evaluating a decision to increase sales volume by lowering sales price Ender Educational Services had budgeted its training service charge at $75 per hour. The company planned to provide 30,000 hours of training services during 2012. By lowering the service charge to $60 per hour, the company was
Responsibility for the fixed cost volume variance Ragan Company expected to sell 400,000 of its pagers during 2011. It set the standard sales price for the pager at $30 each. During June, it became obvious that the company would be unable to attain the expected volume of sales. Ragan’s chief
Responsibility for variable manufacturing cost variance Goslin Manufacturing Company set its standard variable manufacturing cost at $24 per unit of product. The company planned to make and sell 4,000 units of product during 2012. More specifically, the master budget called for total variable
Calculating the materials usage variance Laura Pierre is the manager of the Roebuck Bagel Shop. The corporate office had budgeted her store to sell 3,000 ham sandwiches during the week beginning July 17. Each sandwich was expected to contain 7 ounces of ham. During the week of July 17, the store
Determining materials price and usage variances Gwen's Florals produced a special Mother's Day arrangement that included six roses. The standard and actual costs of the roses used in each arrangement follow.Gwen's Florals planned to make 750 arrangements but actually made 790.Requireda. Determine
Responsibility for materials usage variance Lehman Fruit Basket Company makes baskets of assorted fruit. The standard and actual costs of oranges used in each basket of fruit follow.Lehman actually produced 25,000 baskets. Requireda. Determine the materials price variance and indicate whether it is
Responsibility for labor price and usage variances Aman Manufacturing Company incurred a favorable labor price variance and an unfavorable labor usage variance. Requireda. Describe a scenario in which the personnel manager is responsible for the unfavorable usage variance.b. Describe a scenario in
Calculating and explaining labor price and usage variances Huber and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax return. Huber expected each Class 2 return to require 4.0 hours of labor at a cost of $50 per hour. The
Determining the standard labor price Kerensky Car Wash, Inc., expected to wash 1,000 cars during the month of August. Washing each car was expected to require 0.2 hours of labor. The company actually used 210 hours of labor to wash 940 cars. The labor usage variance was $352 unfavorable.Requireda.
Calculating the variable overhead variance Pena Company established a predetermined variable overhead cost rate at $9.40 per direct labor hour. The actual variable overhead cost rate was $8.30 per hour. The planned level of labor activity was 73,000 hours of labor. The company actually used 80,000
Determining and interpreting fixed cost variances Sloan Company established a predetermined fixed overhead cost rate of $29 per unit of product. The company planned to make 7,000 units of product but actually produced only 6,500 units. Actual fixed overhead costs were $212,000.Requireda. Determine
Determining sales and variable cost volume variances Todhunter Publications established the following standard price and costs for a hardcover picture book that the company produces.Todhunter planned to make and sell 30,000 copies of the book.Requireda. Prepare the pro forma income statement that
Determining and interpreting flexible budget variances Use the standard price and cost data supplied in Problem 8-18A. Assume that Todhunter actually produced and sold 31,000 books. The actual sales price and costs incurred follow.Requireda. Determine the flexible budget variances. Provide another
Flexible budget planning Luke Chou, the president of Digitech Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal year 2012.Requireda.
Determining materials price and usage variances Vacher Fruit Drink Company planned to make 200,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 400,000 cups (200,000 containers 3 2 cups) of frozen concentrate. The
Determining labor price and usage variances Lakesha’s Doll Company produces handmade dolls. The standard amount of time spent on each doll is 1.5 hours. The standard cost of labor is $7.72 per hour. The company planned to make 8,000 dolls during the year but actually used 12,500 hours of labor to
Computing fixed cost variances In addition to other costs, Fenwick Telephone Company planned to incur $441,000 of fixed manufacturing overhead in making 350,000 telephones. Fenwick actually produced 359,000 telephones, incurring actual overhead costs of $447,000. Fenwick establishes its
Computing materials, labor, and cost variances The following data were drawn from the records of Inman Corporation.Planned volume for year (static budget)...... 4,000 unitsStandard direct materials cost per unit...... 3.1 lbs. @ $1.50 per poundStandard direct labor cost per unit.......2 hours @
Computing materials, labor, and fixed cost variances Lennox Manufacturing Company produces a component part of a top secret military communication device. Standard production and cost data for the part, Product X, follow.Planned production......... 30,000 unitsPer unit direct materials......... 2
Osmond Manufacturing Company produces a single product. The following data apply to the standard cost of materials and labor associated with making the product.During the year, the company made 1,800 units of product. At the end of the year, the following variances had been calculated. Requireda.
Computing standard cost and analyzing variances Quilter Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles:During 2010, Quilter planned to produce 30,000 drip candles. Production lagged behind expectations, and
Analyzing not-for-profit entity variances The Midwest Management Association held its annual public relations luncheon in April 2012. Based on the previous year's results, the organization allocated $21,360 of its operating budget to cover the cost of the luncheon. To ensure that costs would be
Classifying variances as favorable or unfavorableRequiredIndicate whether each of the following variances is favorable (F) or unfavorable (U). The first one has been done as an example.
Recognizing favorable vs. unfavorable variances Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U).
Preparing master and flexible budgets Clyde Manufacturing Company established the following standard price and cost data.Clyde planned to produce and sell 18,000 units. It actually produced and sold 19,000 units.Requireda. Prepare the pro forma income statement that would appear in a master budget.
Determining sales and variable cost volume variancesRequiredUse the information provided in Exercise 8-3B.a. Determine the sales and variable cost volume variances.b. Classify the variances as favorable or unfavorable.c. Comment on the usefulness of the variances with respect to performance
Determining flexible budget variances Use the standard price and cost data provided in Exercise 8-3B. Assume the actual sales price was $19.60 per unit and the actual variable cost was $11.80 per unit. The actual fixed manufacturing cost was $21,000, and the actual selling and administrative
Using a flexible budget to accommodate market uncertainty Flemming Cable Installation Services, Inc., is planning to open a new regional office. Based on a market survey Flemming commissioned, the company expects services demand for the new office to be between 30,000 and 40,000 hours annually. The
Evaluating a decision to increase sales volume by reducing sales price At the beginning of its most recent accounting period, Jackora Company had planned to clean 400 house roofs at an average price of $250 per roof. By reducing the service charge to $225 per roof, the company was able to increase
Responsibility for fixed cost volume and spending variances Dill Manufacturing Company had an excellent year. The company hired a new marketing director in January. The new director’s great motivational appeal inspired the sales staff, and, as a result, sales were 20 percent higher than expected.
Assessing responsibility for a labor cost variance Orlov Technologies Company’s 2011 master budget called for using 60,000 hours of labor to produce 180,000 units of software. The standard labor rate for the company’s employees is $38 per direct labor hour. Demand exceeded expectations,
Calculating the materials usage variance Stella Minten manages the Sweet Candy Shop, which was expected to sell 4,000 servings of its trademark candy during July . Each serving was expected to contain 6 ounces of candy. The standard cost of the candy was $0.60 per ounce. The shop actually sold
Determining materials price and usage variances Howe Company makes paint that it sells in 1-gallon containers to retail home improvement stores. During 2012, the company planned to make 190,000 gallons of paint. It actually produced 198,000 gallons. The standard and actual quantity and cost of the
Responsibility for materials price variance Sweer Chill, Inc., makes ice cream that it sells in 5-gallon containers to retail ice cream parlors. During 2011, the company planned to make 100,000 containers of ice cream. It actually produced 97,000 containers. The actual and standard quantity and
Responsibility for labor price and usage variance Newhouse Manufacturing Company incurred an unfavorable labor price variance. Requireda. Describe a scenario in which the personnel manager is responsible for the unfavorable price variance.b. Describe a scenario in which the production manager is
Calculating and explaining labor price and usage variances Albertson Landscaping Company established the following standard labor cost data to provide complete lawn care service (cutting, edging, trimming, and blowing) for a small lawn. Albertson planned each lawn to require 2 hours of labor at a
Determining standard labor hours Stylish Hair is a hair salon. It planned to provide 240 hair color treatments during December. Each treatment was planned to require 0.5 hours of labor at the standard labor price of $18 per hour. The salon actually provided 250 treatments. The actual labor price
Calculating a variable overhead variance Hahn Manufacturing Company established a predetermined variable overhead cost rate of $40 per direct labor hour. The actual variable overhead cost rate was $38 per direct labor hour. Hahn planned to use 150,000 hours of direct labor. It actually used
Determining and interpreting fixed cost variances Smitter Manufacturing Company established a predetermined fixed overhead cost rate of $200 per unit of product. The company planned to make 19,000 units of product but actually produced 20,000 units. Actual fixed overhead costs were
Determining sales and variable cost volume variances Vlascenko Food Corporation developed the following standard price and costs for a refrigerated TV dinner that the company produces.Vlascenko plans to make and sell 200,000 TV dinners.Requireda. Prepare the pro forma income statement that would
Determining and interpreting flexible budget variances Use the standard price and cost data supplied in Problem 8-18B. Assume that Vlascenko actually produced and sold 216,000 units. The actual sales price and costs incurred follow.Requireda. Determine the flexible budget variances. Provide another
Flexible budget planning Executive officers of Ortiz Seafood Processing Company are holding a planning session for fiscal year 2012. They have already established the following standard price and costs for their canned seafood product.Requireda. Prepare the pro forma income statement that would
Determining materials price and usage variances Tiffany Swimsuit Specialties, Inc., makes fashionable women’s swimsuits. Its most popular swimsuit, with the Sarong trade name, uses a standard fabric amount of 6 yards of raw material with a standard price of $5.00 per yard. The company planned to
Determining labor price and usage variances As noted in Problem 8-21B, Tiffany Swimsuit makes swimsuits. In 2011, Tiffany produced its most popular swimsuit, the Sarong, for a standard labor price of $30 per hour. The standard amount of labor was 1.0 hour per swimsuit. The company had planned to
Computing fixed cost variances Goodwin Sporting Goods Co. manufactures baseballs. According to Goodwin’s 2013 budget, the company planned to incur $300,000 of fixed manufacturing overhead costs to make 200,000 baseballs. Goodwin actually produced 187,000 balls, incurring $296,000 of actual fixed
Computing materials, labor, and manufacturing overhead cost variances Frank Trawick was a new cost accountant at Skoney Plastics Corporation. He was assigned to analyze the following data that his predecessor left him.Requireda. Prepare a materials variance information table showing the standard
Computing materials, labor, and fixed cost variances Keedy Corporation makes mouse pads for computer users. After the first year of operation, Diane Keedy, the president and chief executive officer, was eager to determine the efficiency of the company's operation. In her analysis, she used the
A fire destroyed most of Salazar Products Corporation's records. Rose Penwell, the com pany's accountant, is trying to piece together the company's operating results from salvaged documents. She discovered the following data.Requireda. Determine the actual amount of materials used.b. Determine the
Computing standard cost and analyzing variances Scofield Manufacturing Company, which makes aluminum alloy wheels for automobiles, recently introduced a new luxury wheel that fits small sports cars. The company developed the following standards for its new product.In its first year of operation,
Analyzing not-for-profit organization variances The Marketing Department of Hammell State University planned to hold its annual distinguished visiting lecturer (DVL) presentation in October 2012. The secretary of the department prepared the following budget based on costs that had been incurred in
Static versus flexible budget variances Dan Ludwig is the manufacturing production supervisor for Atlantic Lighting Systems. Trying to explain why he did not get the year-end bonus that he had expected, he told his wife, "This is the dumbest place I ever worked. Last year the company set up this
Variable price and usage variances and fixed manufacturing overhead cost variances Kemp Tables, Inc. (KTI), makes picnic tables of 2 3 4 planks of treated pine. It sells the tables to large retail discount stores such as Walmart. After reviewing the following data generated by KTI's chief
Using real world data from Papa John's Obtain the 2004, 2005, 2006, 2007, and 2008 income statements for Papa John's International, Inc. The 2006â€“2008 statements are included in Papa John's 2008 annual report and Form 10-Ks. The 2004 and 2005 statements are in its 2005 annual report.To
Standard costing—The human factor Kemp Corporation makes a protein supplement called Power Punch™. Its principal competitor for Power Punch is the protein supplement Superior Strength™, made by Jim Adams Company (JAC). Mr. Adams, a world-renowned weight-lifting champion, founded JAC. The
Melody Lovelady is the most highly rewarded sales representative at Swift Corporation. Her secret to success is always to understate her abilities. Ms. Lovelady is assigned to a territory in which her customer base is increasing at approximately 25 percent per year. Each year she estimates that her
Irvine Publications established the following standard price and costs for a hardcover picture book that the company produces.Irvine planned to make and sell 30,000 copies of the book.RequiredConstruct a spreadsheet like the one shown in Exhibit8.1 to illustrate a static budget and a flexible
Wilkin Fruit Drink Company planned to make 400,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 800,000 cups (400,000 containers Ã— 2 cups) of frozen concentrate. The standard price of one cup of apple concentrate
The management of Magnificent Modems, Inc. (MMI), is uncertain as to the volume of sales that will exist in 2011. The president of the company asked the chief accountant to prepare flexible budget income statements assuming that sales activity amounts to 3,000 and 6,000 units. The static budget is
Pam Kelly says she has no faith in budgets. Her company, Kelly Manufacturing Corporation, spent thousands of dollars to install a sophisticated budget system. One year later the company’s expenses are still out of control. She believes budgets simply do not work. How would you respond to Ms.
All travel expenses incurred by Pure Water Pump Corporation are reported only to John Daniels, the company president. Pure Water is a multinational company with five divisions. Are travel expenses reported following the responsibility accounting concept? Explain.
What are five potential advantages of decentralization?
Who receives responsibility reports? What do the reports include?
How does the concept of predominant control as opposed to that of absolute control apply to responsibility accounting?
How do responsibility reports promote the management by exception doctrine?
What is a responsibility center?
What are the three types of responsibility centers? Explain how each differs from the others.
Carmen Douglas claims that her company’s performance evaluation system is unfair. Her company uses return on investment (ROI) to evaluate performance. Ms. Douglas says that even though her ROI is lower than another manager’s, her performance is far superior. Is it possible that Ms. Douglas is
What two factors affect the computation of return on investment?
What three ways can a manager increase the return on investment?
How can a residual income approach to performance evaluation reduce the likelihood of suboptimization?
Is it true that the manager with the highest residual income is always the best performer?
Why are transfer prices important to managers who are evaluated based on profitability criteria?
What are three approaches to establishing transfer prices? List the most desirable approach first and the least desirable last.
If cost is the basis for transfer pricing, should actual or standard cost be used? Why?
Organization chart and responsibilities The production manager is responsible for the assembly, cleaning, and finishing departments. The executive vice president reports directly to the president but is responsible for the activities of the production department, the finance department, and the

Showing 3700 - 3800 of 58739

First
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved