4- Calculate the below variance: Static Budget 12000 1,620,000 312,000 264,000 306,000 Sales volume variance price) 338,000 Variable budget Flexible budget (Actual Quantity * Static 286,000 13000 1,755,000 338,000 286,000 331,500 Efficiency variable 26000 favorable 331,500 Efficiency variable Efficiency variable Flexible budget variance Actual Quantity x Static price 312,000 429,000 442,000 Actual 13000 1,950,000 Data Quantity sold Total revenues Variable cost 390,000 Direct material 478,500 Direct labor cost 390,000 Overhead cost Actual Cost (Actual Quantity x Actual Cost) 390,000 Price variance 478,500 Price variance 390,000 Price variance 52000 favorable

4- Calculate the below variance: Static Budget 12000 1,620,000 312,000 264,000 306,000 Sales volume variance price) 338,000 Variable budget Flexible budget (Actual Quantity * Static 286,000 13000 1,755,000 338,000 286,000 331,500 Efficiency variable 26000 favorable 331,500 Efficiency variable Efficiency variable Flexible budget variance Actual Quantity x Static price 312,000 429,000 442,000 Actual 13000 1,950,000 Data Quantity sold Total revenues Variable cost 390,000 Direct material 478,500 Direct labor cost 390,000 Overhead cost Actual Cost (Actual Quantity x Actual Cost) 390,000 Price variance 478,500 Price variance 390,000 Price variance 52000 favorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Can you help me interpret these results i)Revenue Variance, Price, and Volume Variance Revenue variance = Actual revenues – Static revenues = $2,200,000 - $1,9800,000 = $220,000 Price variance = Actual revenues – Flexible revenues =$2,2000,000 - $2,200,000 =$0 Volume variance = Flexible revenues – Static revenues =$2,200,000 - $1,980,000 = $220,000 ii) Cost Variance, Volume Variance and Management Variance Cost variance = Static cost - Actual cost =$1,350,000 -$1,625,000 = $-275,000 Volume = Static cost – Flexible costs = $1,350,000 - =$1,475,000 = $-125,000 Management variance = Flexible cost- Actual cost =$2,200,000 - 1,625,000 =$575,000 iii) Profit Variance Profit Variance= Actual Profit - Static Profit = 225,000 - 130,000 = 95,000 Revenue Variance = Actual Revenue - Static Revenue = 2, 200,000 - 1,980,000 = 220,000 Cost Variance = Static Cost - Actual Costs = 1,850,000 - 1,975,000 = (125,000) Can you help me interpret these results
What is the sales volume variance? A. 11,000F B. 12,000F C. 12,000U D. 11,500U
4. What is the total production variance? a. P4,000 unfavorable b. P3,000 unfavorable c. P3,000 favorable d. P7,000 favorable
Budgeted sales OMR 60000; Actual sales OMR 75000; then the variance will be: O a. OMR 15000 Unfavorable of O b. OMR 15000 Favorable O C. Some other answer O d. OMR 60000 Favorable page
Format: 11,111 U or 11,111 F 1. Sales price variance 2. Cost price variance 3. Quantity variance 4. Sales mix variance
Refer to Pearce Company Using the three-variance approach, what is the efficiency variance? A. $11,770 F B. $2,200 F C. $7,975 U D. $5,775 U
The level 2 variance analysis table is shown here: Actual Results Flexible Variances Flexible Budget Volume Variances Sales-Static Units sold Sales Variable costs Contribution margin Fixed costs Operating income When complete the table values for E and F are O $76,000 U and $220,000 U 46,000 $2,760,000 1,564,000 $1,196,000 627,000 44,000 $2,475,000 1,540,000 $900,000 660,000 $240,000 A B. D. G $309,000 F Y and O $276,000 U and $20,000 U O $76,000 F and $220,000 F $276,000 Fand $20,000 F O O O
A flexible budget ( check all that apply): a. Separates variable costs from fixed costs b. Shows reevenues and expenses for varous levels of sales volume c. Reports variable costs on a per unit basis d. Reports fixed costs on a oer unit basis
Estimating the effects of changes in budget assumptions, such as determining the impact of an increase or decrease in sales, is called: Question 4 options: static budget analysis. sensitivity analysis. variance analysis, cost reduction analysis. (Ch 10) An advantage of a flexible budget is that it: Question 5 options: allows comparison of actual costs to master (static) budget costs. considers only variable costs. allows comparisons of actual costs to the costs that should have been incurred, given the level of sales. allows management freedom in meeting profitability goals.
True/false 11) o calculate a spending variance, subtract actual income from actual expenses. ________ 12. To calculate an activity variance, subtract actual quantity from actual price. ________ 13. When actual revenue is higher than budgeted revenue, the difference is a general spending variance. ________ 14. The static budget is the same as the planning budget. ________ 15. Depreciation is accounted for as a spending variance. ________ 16. Achieving standard costs in a company performance report is desirable. ________ 17. The three determinants of standard costs are quantity, price, and weight. ________ 18. The assembly line workers are responsible for the materials price variance. ________19. The raw materials inventory manager is responsible for the overhead efficiency variance. ________ 20. The labor efficiency variance and the overhead efficiency variable may both utilize direct labor hours as a factor.
Required a. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements and indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Sales Variable expenses: Fixed expenses: $ ROONEY COMPANY Internal Income Statement Budget 0 0 0 $ Actual 0 0 0 Variance Effect
Compute the following: Total gross profit variance Sales mix variance Final sales volume variance Format: 11,111 F or 11,111 U