Sales equal units produced.
Selling price does not change.
Units sold are sole driver of sales revenue amount.
Costs are either variable or fixed costs.
Unit is the sole driver for variable costs.
Constant scale o
(30 min.) Direct manufacturing labor and direct materials variances, missing data.
Direct mfg. labor
INVENTORY COSTING AND CAPACITY ANALYSIS
Variable and absorption costing, explaining operating-income differences.
Key inputs for income statement computations are
Goods available for sale
FLEXIBLE BUDGETS, OVERHEAD COST VARIANCES, AND
(20 min.) Variable manufacturing overhead, variance analysis.
Variable Manufacturing Overhead Variance Analysis for Esquire Clothing for June 2009
(3050 min.) Review of Chapters 7 and 8, 3-variance analysis.
Note: In some print versions of the text, the name of the company is stated as Beal. The
problem should refer to the Brown Manufacturing Company instead.
Total standard production costs
17-33 (20 min.) FIFO method (continuation of 17-31).
The equivalent units of work done in the Assembly Department in October 2014 for
direct materials and conversion costs are shown in Solution Exhibit 17-33A.
SOLUTION EXHIBIT 17-33A
Summarize the Flow
(40 min.) Variable costing versus absorption costing.
Mavis Company Income Statement
For the Year Ended December 31, 2014
Revenues (540,000 $5.00)
Cost of goods sold:
Beginning inventory (30,000 $3.70a)
Variable manufacturing c
7-29 (30 min.) Flexible budget, direct materials and direct manufacturing labor variances.
Variance Analysis for Milan Statuary for 2014