# The flexible budget performance report directs

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The flexible budget performance report directs managementâ€™s attention to areas where corrective actioncan help control operations. Management uses the report to determine:Quantity variancesPrice variancesThe controllable variance is so called because it:- Refers to activities usually under management controlABC company has set the following standards for one unit of product: Direct materials: 0.5 pounds @\$1.00 per pound; Direct labor: 1 hour @ \$10.00 per hour. The company produced 35,000 units and hadthe following actual costs: Direct materials: 18,000 pounds at a total cost of \$17,280; Direct labor:36,000 hours at a total cost of \$374,400. Compute the labor rate variance\$14,400 UA company has budgeted fixed overhead of \$8,750 and applied overhead of \$9,250. The volumevariance is:\$500 FA company has budgeted fixed overhead of \$1.00 per hour at expected capacity of 5,000 units whichhave a standard quantity of 2 hours per unit. The company actually produces 5,200 units. The volume
variance is:\$400 FABC company has set the following standards for one unit of product: Direct materials: 0.5 poundsâ€¦..Compute the labor efficiency variance.\$10,000 UXYZ Company makes one product and has calculated the following amounts for direct labor: AH x AR =\$84,000; AH x SR = \$83,000; SH x SR = \$85,000. Compute the labor efficiency variance.\$2,000 FXYZ company makes one product and â€¦Compute the total labor cost variance\$1000 FA company budgets administrative salaries at \$5,000 at a sales level of 1,000 units. At a sales level of1,200 units, budgeted administrative salaries will be \$___\$5000Because budgeted fixed costs remain the same regardless of production volume, a(n) volume varianceoccurs when there is a difference between actual volume of production and the standard volume ofproduction.- VolumeThe volume variance is based on:Fixed overheadList the 4 steps in the budgetary control process in the order in which they are performed, with the firston top.1. Develop budget.2. Compare actual results to budgeted amounts.3. Take action.4. Set new plansPreset costs for delivering a product or service under normal conditions are called _____ costs.Standard
XYZ company makes one product and has calculated the following amounts for direct materials: AQ x AP= \$150,000; AQ x SP = \$145,000; SQ x SP = \$152,000. Compute the materials quantity variance.
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Term
Fall
Professor
JeanineGrillo
Tags
Sales variance, XYZ Company