Question 2 Polysar.docx - Question 2 According to Exhibit 2 Fixed costs Actual($\u2018000s Budget($\u2018000s Standard 25,060 23,100 Cost Adjustments 168 80

Question 2 Polysar.docx - Question 2 According to Exhibit 2...

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Question 2 According to Exhibit 2: Fixed costs Actual ($‘000s) Budget($‘000s) Standard 25,060 23,100 Cost Adjustments 168 80 Volume Variance 11,375 6,125 FC standard unit= Budgeted FC to production/ demonstrated capacity= 44,625k/ (85,000*9/12) = $700 per ton Standard : Actual: Actual sales volume * FC standard unit= 35.8* 700= 25,060 Budget: Budget sales volume* FC standard unit= 33* 700=23,100 Cost Adjustments: Transfers from EROW will be 2.1 in actual and 1 in budget and use the budgeted unit of $620 per ton rate at EROW. Actual: Actual transfers from EROW* (FC standard unit- FC standard unit at EROW) =
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  • Spring '14
  • 9 months, actual sales volume, $700, volume variance, $620

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