ARIZONA CORP. manufactured 1,000 units during April with a total overhead budget of P12,400. However, while manufacturing the 1,000 units the microcomputer that contained the month's cost information broke down. With the computer out of commission, the accountant has been unable to complete the variance analysis report. The information missing from the report is lettered in the following set of cata: Variable overhead: Standard cost per unit: 8. 0.4 labor hour at P4 per hour P2,100 for 376 hours Actual costs: Flexible budget: Total flexible-budget variance: Variable overhead spending variance: Variable overhead efficiency variance: Fixed overhead: Budgeted costs: Actual costs: P500 favorable Flexible-budget variance: REQUIREMENT: Compute the missing elements in the report represented by the lettered items. 1999 4.
ARIZONA CORP. manufactured 1,000 units during April with a total overhead budget of P12,400. However, while manufacturing the 1,000 units the microcomputer that contained the month's cost information broke down. With the computer out of commission, the accountant has been unable to complete the variance analysis report. The information missing from the report is lettered in the following set of cata: Variable overhead: Standard cost per unit: 8. 0.4 labor hour at P4 per hour P2,100 for 376 hours Actual costs: Flexible budget: Total flexible-budget variance: Variable overhead spending variance: Variable overhead efficiency variance: Fixed overhead: Budgeted costs: Actual costs: P500 favorable Flexible-budget variance: REQUIREMENT: Compute the missing elements in the report represented by the lettered items. 1999 4.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 1PA: Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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