The flexible budget performance report directs

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The flexible budget performance report directs management’s attention to areas where corrective action can help control operations. Management uses the report to determine: Quantity variances Price variances The controllable variance is so called because it: - Refers to activities usually under management control ABC 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 had the 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 U A company has budgeted fixed overhead of $8,750 and applied overhead of $9,250. The volume variance is: $500 F A company has budgeted fixed overhead of $1.00 per hour at expected capacity of 5,000 units which have a standard quantity of 2 hours per unit. The company actually produces 5,200 units. The volume
variance is: $400 F ABC company has set the following standards for one unit of product: Direct materials: 0.5 pounds….. Compute the labor efficiency variance. $10,000 U XYZ 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 F XYZ company makes one product and …Compute the total labor cost variance $1000 F A company budgets administrative salaries at $5,000 at a sales level of 1,000 units. At a sales level of 1,200 units, budgeted administrative salaries will be $___ $5000 Because budgeted fixed costs remain the same regardless of production volume, a(n) volume variance occurs when there is a difference between actual volume of production and the standard volume of production. - Volume The volume variance is based on: Fixed overhead List the 4 steps in the budgetary control process in the order in which they are performed, with the first on top. 1. Develop budget. 2. Compare actual results to budgeted amounts. 3. Take action. 4. Set new plans Preset 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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