Survey Of Accounting
Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 15, Problem 10E

a.

To determine

Prepare flexible budget for the actual number of production units.

b.

To determine

Analyze the performance of the production manager, JM.

c.

To determine

Explain the reason for not including the revenue and net income while evaluating the performance of JM.

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QUESTION 1 New Norm Fashion produces washable face mask shield. The following budgeted/ actual information is provided regardingto the production of face mask: RM/unit Selling price 50.00 Direct materials 8.00 Direct labour 5.00 Variable production overheads 3.00 Details of its operations for the month of May and June 2021 are as follows: May June Production 500 380 Sales 300 500 Fixed production overheads are budgeted at RM4,000 per month and are absorbed on a unit basis. The normal level of production is budgeted at 400 units per month. Other costs: RM/month Fixed selling 4,000 Fixed administration 2,000 Variable sales commission 5% of sales revenue There was no opening inventory of face mask at the beginning of May. Required: (a) Prepare income statement for the month of May and June using (i) variable costing (ii) absorption costing (b) Prepare a reconciliation of profit or loss figures based on your answers in a(i) and (c)Describe a situation where net profit under variable…
QUESTION 8 V Limited operates a standard costing system and a system of budgetary control. The budgeted information and standard costs for March 2020 were as follows. Budgeted output 2500 units Budgeted fixed overheads $48000 Standard cost per unit Direct materials $24 (3 kilos at $8 each) Direct labor $64 (4 hours at $16 each) V Limited uses labor hours to absorb fixed overheads. The actual results for March 2020 were as follows. Output 2400 units Fixed overheads $49800 Direct materials cost $68340 Direct materials usage 8040 kilos Direct labor costs $156864 Direct labor hours 9120 hours Required: (a) (i) Calculate the direct materials price and quantity variance. (ii) State the 2 reasons for each of the direct materials variance. (b) 1) Calculate the direct labor rate and efficiency variance. (ii) State the 2 reasons for each of the direct labor variance. (c) (i) Calculate the fixed overheads expenditure variance. (ii) Calculate the fixed overheads volume variance
Current Attempt in Progress Monty Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.50 Indirect materials 1.10 Utilities 0.80 Budgeted fixed overhead costs per month are Supervision $3,920, Depreciation $1,176, and Property Taxes $784. The company believes it will normally operate in a range of 6,860-9,800 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 980 direct labor hours. (List variable costs before fixed costs.) MONTY COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2022

Chapter 15 Solutions

Survey Of Accounting

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What is Budgeting? | Budgetary control | Advantages & Limitations of Budgeting; Author: Educationleaves;https://www.youtube.com/watch?v=INnPo0QPXf4;License: Standard youtube license