a-d. How do I calculate profit, revenue and cost variances and how are they related? Consider the following 2016 data for Newark General Hospital (in millions ofdollars):6.1Simple FlexibleBudgetBudgetRevenuesCostsProfit$4.74.1o.6$4.84.10.7ActualResults$4.54.20.3a.b.c.d.Calculate and interpret the two profit variances.Calculate and interpret the two revenue variances.Calculate and interpret the two cost variances.How are the variances related?

Since the question has four sub parts, only first three of them have been answered. Please post the…

Answered: Consider the following 2016 data for…

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 22E

See similar textbooks

Similar questions

Marten Company has a cost-benefit policy to investigate any variance that is greater than 1,000 or 10% of budget, whichever is larger. Actual results for the previous month indicate the following: The company should investigate: a. neither the materials variance nor the labor variance. b. the materials variance only. c. the labor variance only. d. both the materials variance and the labor variance.
1 Consider the fallowing 2020 data for Queens General Hospital (in millions of dollars): Simple Flexible Actual Budget Budget Results Revenues $5.7 $3.8 $4.5 Cost 4.8 3.1 4.2 Profit 0.9 0.8 0.3 Calculate and interpret the two profit variances. Calculate and interpret the two revenue variances. Calculate and interpret the two cost variances. How are variances related?
Use the information provided below to calculate the following manufacturing variances for March2022. Note: Each answer must state whether the variance is favourable or unfavourable 2.2.1 Labour rate variance 2.2.2 Labour efficiency variance 2.2.3 Variable overheads efficiency variance2.2.4 Variable overheads expenditure variance INFORMATIONNevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 perlabour hour.Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurredwas R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours.
Use the information provided below to calculate the following manufacturing variances for March2022. Note: Each answer must state whether the variance is favourable or unfavourable.1. Labour rate variance2. Labour efficiency variance3. Variable overheads efficiency variance4. Variable overheads expenditure varianceINFORMATIONNevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 perlabour hour.Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurredwas R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours.
LJ Company has the following information for the third quarter of 2018: Actual total overhead (fixed plus variable) Php374,850Budget formula Php231,000 plus Php1.20 per hourSpending variance (3-way analysis) Php16,800 unfavorableVolume variance (2-way analysis) Php10,500 favorableOver-all factory overhead variance Php12,600 unfavorable 8. Determine the efficiency variance.A. Php6,300 F C. Php18,900 FB. Php6,300 UF D. Php18,900 UF 9. Determine the actual hours worked during the 3rd quarter.A. 127,050 hours C. 87,150 hoursB. 143,850 hours D. 105,875 hours 10. Determine the standard hours needed for the 3rd quarter.A. 100,625 hours C. 133,350 hoursB. 111,125 hours D. 120,750 hours
The following information is available from the KANSAN CORP.: Actual factory O/H P15,000 Fixed O/H expenses, actual P7,200 Fixed O/H expenses, budgeted P7,000 Actual hours 3,500 Standard hours 3,800 Variable O/H rate per DLH P2.50 Assuming that Tyro uses a three-way analysis of O/H variances, what is the spending variance?
Use the information provided below to calculate the following manufacturing variances for March 2022. Note: Each answer must state whether the variance is favourable or unfavourable. Question: What is the Variable overheads efficiency variance INFORMATIONNevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 perlabour hour.Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurredwas R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours.
Bulldogs Inc. wants to analyze the variances in its actual and budgeted gross profit. The following are available:· Actual gross profit and actual gross profit ratio is P600,000 and 25%, respectively.· The actual sales are P400,000 more than the total budgeted sales.· Budgeted sales price at actual quantity sold is P2,000,000What is the Sales Volume Variance under 4-way analysis?
Use the information provided below to calculate the following manufacturing variances for March 2022. Note: Each answer must state whether the variance is favourable or unfavourable. Question: What is the Variable overheads expenditure variance INFORMATIONNevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 perlabour hour.Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurredwas R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours.
Bingo Inc. wants to analyze the variances in its actual and budgeted gross profit. The following are available:· Actual gross profit and actual gross profit ratio is P600,000 and 25%, respectively.· The actual sales are P400,000 more than the total budgeted sales.· Budgeted sales price at actual quantity sold is P2,000,000What is the Sales Volume Variance under 4-way analysis?
CompuWorld sells two products, R66 and R100, and calculates sales variances using the CM. Info for the current year: Budgeted Actual R66 R100 R66 R-100 Selling Price $50 $160 $55 $155 VC per unit $40 $90 $43 $95 CM $10 $70 $12 $60 FC per unit $6 $30 $5 $25 Op Income $4 $40 $7 $35 Sales in units 1,200 400 1,000 1,000. What is R100 Sales Mix Variance? What is total sales volume variance? What is the R66 sales quantity variance?
his year’s total sales of Bulldogs Inc. is P4,600,000. The following variances are determined:· Sales Price Variance – 750,000 favorable· Cost Price Variance – 100,000 unfavorable· Sales Volume Variance – 150,000 unfavorableUsing horizontal analysis, determine the percentage change from the prior year total sales to the current year total sales. 20% 10% 25% 15%

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

SEE MORE TEXTBOOKS