AF 3112 Week 10 Assignment.pdf - AF 3112 MANAGEMENT...

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AF 3112 MANAGEMENT ACCOUNTING 2 Week 10 exercises 8-13 What are the variances in a 4-variance analysis? 8-15 Describe how flexible-budget variance analysis can be used in the control of costs of activity areas. 8-26 4-variance analysis, fill in the blanks. Healthy Limited is a pharmaceutical and biotechnology company. It has the following data for manufacturing overhead costs during August 2018: Variable Fixed Actual costs incurred $36000 $20000 Costs allocated to products 38000 16500 Flexible budget - 15000 Actual input × budgeted rate 35600 Fill in the blanks. Use F for favorable and U for unfavorable: Variable Fixed (1) Spending variance $ (2) Efficiency variance (3) Production-volume variance (4) Flexible-budget variance (5) Underallocated (overallocated) manufacturing overhead 8-27 Straightforward 4-variance overhead analysis. The Lopez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 4,000 output units per year, included 6 machine-hours of variable manufacturing overhead at $8 per hour and 6 machine-hours of fixed manufacturing overhead at $15 per hour. Actual output produced was 4,400 units. Variable manufacturing overhead incurred was $245,000. Fixed manufacturing overhead incurred was $373,000. Actual machine-hours were 28,400. Required: 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances. 2. Prepare journal entries using the 4-variance analysis. 3. Describe how individual fixed manufacturing overhead items are controlled from day to day. 4. Discuss possible causes of the fixed manufacturing overhead variances. - $
8-38 Overhead variance, missing information. Consider the following two situations— cases A and B—independently. Data refer to operations for April 2017. For each situation, assume standard costing. Also assume the use of a flexible budget for control of variable and fixed manufacturing overhead based on machine-hours. Cases A (1) Fixed manufacturing overhead incurred $ 84,920 $23,180 (2) Variable manufacturing overhead incurred $120,400 (3) Denominator level in machine-hours 1,000 (4) Standard machine-hours allowed for actual output achieved 6,200 (5) Fixed manufacturing overhead (per standard machine-hour) Flexible-Budget Data: (6) Variable manufacturing overhead (per standard machine-hour) $ 42.00 (7) Budgeted fixed manufacturing overhead $ 88,200 $20,000 (8) Budgeted variable manufacturing overhead a (9) Total budgeted manufacturing overhead a Additional Data: (10) Standard variable manufacturing overhead allocated $124,000 (11) Standard fixed manufacturing overhead allocated $ 86,800 (12) Production-volume variance $ 4,000 F (13) Variable manufacturing overhead spending variance $ 5,000 F $ 2,282 F (14) B

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