Question: Flexible budget (Refer to data in Exercise 7-26). Suppose the static budget was for 2,500 units of output. Actual output was 2,000 units. The variances

Flexible budget (Refer to data in Exercise 7-26). Suppose the static budget was for 2,500 units of output. Actual output was 2,000 units. The variances are shown in the following report:

Actual Results $18,870 Static Budget Variance $6,130 F $3,680 F Direct materials Direct manufacturing labor $25,000 $ 8,

What are the price, efficiency, and sales-volume variances for direct materials and direct manufacturing labor? Based on your results, explain why the static budget was not achieved.

Actual Results $18,870 Static Budget Variance $6,130 F $3,680 F Direct materials Direct manufacturing labor $25,000 $ 8,820 $12,500

Step by Step Solution

★★★★★

3.42 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Flexible budget Refer to data in Exercise 726 A more detailed analysis underscores the fact that the ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

24-B-C-A-B (83).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Suppose the static budget was for 24,000 units of output. The general manager is thrilled about the following report: Required Is the manager's glee warranted? Prepare a report that provides a more...

Based on the data in Exercise 7 and assuming that the average compensation per hour for staff is $45 and for partners is $140, prepare a professional labor cost budget for each department for Rollins...

Direct materials and direct manufacturing labor variances. GloriaDee, Inc., designs and manufactures T-shirts. It sells its T-shirts to brand-name clothes retailers in lots of one dozen. GloriaDees...

7 - 2 8 Flexible budget. ( Refer to data in Exercise 7 - 2 6 ) . Suppose the static budget was for 2 , 5 0 0 units of output. Actual output was 2 , 0 0 0 units. The variances are shown in the...

Tools Data Window Help Excel File Edit View Insert Format Ch 8 H Auto Save OFF Review Developer Formulas Data View Home Insert Draw Page Layout ag v General 14 A A Calibri $ ~ % 9 Paste B I A Recover...

= Homework: Chapter 10 Homework Question 7, E10-27A (SI... Part 2 of 8 HW Score: 85.61%, 21.4 of 25 points Score: 2.16 of 4 Save The Creative Balloon Company produces party balloons that are sold in...

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for January is:...

7-35 Materials and manufacturing labor variances, standard costs. Consider the following selectod fe. per square yard, Rs 102; direct manufacturing labor costs, Rs 3,52,800; actual hours of ingat...

find attached screenshot for budget assignment Overview: In this assignment, you are provided with a case which includes data relating to static budget, flexible budget, and variance analysis. You...

1. Chapter 9 Foundational 0 Saved Help Save & Exit Submit 1 Required information [The fol/owing information applies to the questions displayed below] Adger Corporation is a service company that...

This article investigates the incorporation of Piccianos Blending with purpose multimodal model into an undergraduate music education module. This multimodal model advocates that teachers and...

1. Using Hofstedes four cultural dimensions as a point of reference, what are some of the main cultural differences between the United States and France? 2. In what way has Trompenaars research...

The equity method is used Multiple choice question. once the investor obtains significant influence. when the investor has a passive interest in the investee.

a. Purchased $101,700 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials. Indirect materials Total materials...

Tickets to athletic events, concerts and other venues are often resold at higher than original prices. In some states, scalping is outright illegal, while in other states, scalping is legal under...

a. Southwick Company uses a job order costing system. On November 1, $15,000 of direct materials and $3,500 of indirect materials were requisitioned for production. Prepare the general journal...

An analysis of the transactions made by Peat Deloitte & Co., a certified public accounting firm, for the month of August is shown as follows. The expenses were $560 for rent, $4,800 for salaries...

Job Analysis Exercise Please conduct a job analysis for the position "graduate student enrolled in a master's program in the general field of business." This job analysis may benefit from...

Which of the following is a likely result of expansionary monetary policy in a recession? (A) Aggregate demand decreases so that the price level falls. (B) Aggregate demand increases, which increases...

Give three examples of opportunity costs that typically are not recorded in accounting systems although they are relevant when using the EOQ model.

The controller of the ljiri Company wants you to estimate a cost function form the following two observations in a general ledger account called Maintenance. 1. Estimate the cost function for...

Matching graphs with descriptions of cost and revenue behavior. Given here are a number of graphs. The horizontal axis represents the units produced over the year and the vertical axis represents...

High-low method, regression analysis. Anna Martinez, the financial manager at the Casa Real restaurant is checking to see if there is any relationship between newspaper advertising and sales revenues...

You purchase 100 shares of stock for $25 a share. The stock pays a $2 per share dividend at year-end. a. What is the rate of return on your investment if the end-of-year stock price is (i) $23; (ii)...