Modern Tiles Ltd. manufactures ceramic tiles. For January 2020, it budgeted to purchase and use 10,000 pounds
Question:
Modern Tiles Ltd. manufactures ceramic tiles. For January 2020, it budgeted to purchase and use 10,000 pounds of clay at $0.70 a pound. Actual purchases and usage for January 2020 were 11,000 pounds at $0.65 a pound. Modern Tiles Ltd. budgeted for 40,000 ceramic tiles.
Actual output was 43,000 ceramic tiles.
Required
1. Compute the flexible-budget variance.
2. Compute the price and efficiency variances.
3. Comment on the results for requirements 1 and 2 and provide a possible explanation for them.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Solution Information Given Actual Budgeted Output Units Tiles 43000 40000 Input Units Pound of clay ...View the full answer
Answered By
Marvine Ekina
Marvine Ekina
Dedicated and experienced Academic Tutor with a proven track record for helping students to improve their academic performance. Adept at evaluating students and creating learning plans based on their strengths and weaknesses. Bringing forth a devotion to education and helping others to achieve their academic and life goals.
PERSONAL INFORMATION
Address: , ,
Nationality:
Driving License:
Hobbies: reading
SKILLS
????? Problem Solving Skills
????? Predictive Modeling
????? Customer Service Skills
????? Creative Problem Solving Skills
????? Strong Analytical Skills
????? Project Management Skills
????? Multitasking Skills
????? Leadership Skills
????? Curriculum Development
????? Excellent Communication Skills
????? SAT Prep
????? Knowledge of Educational Philosophies
????? Informal and Formal Assessments
0 Reviews
10+ Question Solved
Related Book For 
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan
Question Posted:
