Shown below is a comparison between the budgeted and actual costs data for the Mixing Department headed by Ms. Candy. Budget Actual Salaries and wages P 20,000 P 20,000 Supplies 8,000 12,000 Postage, telephone and telegraph 2,500 3,700 Repairs and maintenance 4,000 2,500 Depreciation 3,000 2,000 Light and water 2,000 2,800 The decrease in depreciation cost and repairs and maintenance is due to the disposal of an equipment during the period. The disposal was approved by the Vice President for Production when the Mixing Department reported that the equipment was not functioning efficiently. On the other hand, the increase in light and water cost is due to the adjustment in power rates imposed by Manila Electric Company. Determine the amount of cost variance that must be considered in evaluating the performance of the Mixing Department.

Shown below is a comparison between the budgeted and actual costs data for the Mixing Department headed by Ms. Candy. Budget Actual Salaries and wages P 20,000 P 20,000 Supplies 8,000 12,000 Postage, telephone and telegraph 2,500 3,700 Repairs and maintenance 4,000 2,500 Depreciation 3,000 2,000 Light and water 2,000 2,800 The decrease in depreciation cost and repairs and maintenance is due to the disposal of an equipment during the period. The disposal was approved by the Vice President for Production when the Mixing Department reported that the equipment was not functioning efficiently. On the other hand, the increase in light and water cost is due to the adjustment in power rates imposed by Manila Electric Company. Determine the amount of cost variance that must be considered in evaluating the performance of the Mixing Department.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.17E: Capital expenditures budget On August 1, 20Y4. the controller of Handy Dan Tools Inc. is planning...

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Relevant data from the operating budget of The Framers are: quarter 1 quarter 2 Sales $35,000 76,000 Direct Material purchases 25,000 26,000 Direct labor 30,000 24,000 Manufacturing OH 9,000 10,000 Selling & Admin 20,000 20,000 Depreciation included in Selling & Admin 1000 1,000 Cash Collections 34,000 76,000 Cash payments 29,000 20,000 Cash received: other 8,000 500 Dividend 0 500 Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May. The beginning cash balance was $40,000 and a required minimum cash balance is $8,000. Prepare a cash budget for the first two quarters of the year.
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