{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

chapter%20110

# chapter%20110 - Apples to Apples Inc before the fact...

This preview shows pages 1–5. Sign up to view the full content.

September 7, 2011 Accounting 2102 1 Chapter 11 Flexible Budgets

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Why use a Flexible Budget? 2 uses of a budget “in practice” 1. before the fact . . . planning 2. after the fact . . . controlling Using a static budget . . . Using a flexible budget . . . September 7, 2011 Accounting 2102 2
Apples to Apples, Inc. manufactures fruit crates and noted the following actual costs for its manufacturing operations at two activity levels: September 7, 2011 Accounting 2102 3 Develop a cost formula for total manufacturing costs using the high-low method. 10,000 DL hrs 20,000 DL hrs total cost cost per DL hr total cost cost per DL hr Direct Materials \$100,000 \$10 \$200,000 \$10  Direct Labor \$80,000 \$8 \$160,000 \$8  Manufacturing Overhead \$245,000 \$25 \$285,000 \$14

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Apples to Apples, Inc. before the fact . . . September 7, 2011 Accounting 2102 4 Using the cost formulas developed on the previous slide, prepare a flexible budget for the manufacturing costs at the activity levels listed below. 12,000 DL hours 15,000 DL hours 17,000 DL hours Total Manufacturing Costs Apples to Apples, Inc. after the fact . . . September 7, 2011 Accounting 2102 5 Actual manufacturing costs for the month just ended are listed below. The actual activity level was 15,000 DL hours. Using a flexible budget, calculate the dollar variance for total manufacturing costs and indicate if the variance is favorable or unfavorable. Budget Actual Variance Total Manufacturing Costs \$545,000...
View Full Document

{[ snackBarMessage ]}

### Page1 / 5

chapter%20110 - Apples to Apples Inc before the fact...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online