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OBJCH11_08 - (P.452 4 Calculate variable overhead and fixed...

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COST AND MANAGEMENT ACCOUNTING 1 UNIT 5 - STANDARE COSTS AND OVERHEAD ANALYSIS - Part 2 (Chapter 10---continued) LEARNING OUTCOMES : 1. Prepare a 5-column flexible budget performance report, calculate the static budget variance, and reconcile the difference between actual income and static budget income in terms of an activity variance, selling price variance, flexible budget variable and fixed costs variances. See supplementary notes and related problems. 2. Calculate flexible variances for direct materials, direct labour, and variable overhead and prepare related journal entries for direct material and direct labour variances. Provide plausible general reasons for the variances and indicate the person or department who is typically responsible. 3. Explain the significance of the denominator activity in determining the standard fixed overhead cost of a unit of product. ( see supplementary note ) Understand the concepts of theoretical capacity versus practical capacity
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Unformatted text preview: (P.452). 4. Calculate variable overhead and fixed overhead variances, provide plausible general reasons for each of the variances, and indicate who is usually responsible for explaining the variance. 5. Apply overhead cost to units of product in a standard cost system and explain the relationship between overhead variances and under/over applied overhead cost. (See supplementary note and problems) 6. Prepare journal entries related to the recording of overhead variances in a standard cost system including the disposition of variances at the year end. (See supplementary note and related problems, P7-26, P7-41). 7. Calculate variable and fixed manufacturing variances in a comprehensive variance problem when only partial information is provided (i.e., find the unknown amounts). 8. Describe the criteria used to determine when to follow up variances. (See supplementary note). P10-23, P10-24, P10-25, P10-26 Rev. 03/11...
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