Total Materials Variance Material Price Variance Material Quantity Variance Total Labor Variance Labor Price Variance Labor Quantity Variance
Total Materials Variance Material Price Variance Material Quantity Variance Total Labor Variance Labor Price Variance Labor Quantity Variance
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 47P: (Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30...
Related questions
Question
100%
Surrey Bikes, Inc. manufactures double bench bikes for resorts and other vacation properties. | |||||||
Management now wants the accountants to complete an analysis to compare the budgeted |
|||||||
During the year 2021, the company completed 680 bikes. | |||||||
Let's discuss changes from budget and standard that occurred during 2021. | |||||||
Overall, the company was able to increase several efficiencies. | |||||||
However, the company also experienced some increased costs. | |||||||
Use this information to complete the CH24 Budet Variances tab; the green section. | |||||||
Electrical Parts Direct Materials | |||||||
The purchase price, net of discounts increase by $2.50 per set. | |||||||
There was also an increase in freight of by $0.25 per set. | |||||||
Wheel Sets Direct Materials: | |||||||
The company was able to secure the same wheel sets from a new supplier at a cost of $37/set. | |||||||
However, freight cost increased by $0.50 per wheel set. | |||||||
Metal Parts Direct Materials: | |||||||
The company was also able to reduce the amount of material used for each bike by 3 pounds. | |||||||
The acual cost of the metal parts was $0.52 per pound. | |||||||
Canvas Fabric Direct Materials: | |||||||
The company was also able to reduce the amount of material used for each bike by one-half a yard. | |||||||
The acual cost of the canvas fabric was $4.95 per yard. | |||||||
Direct labor: | |||||||
Employees were tasked with increasing equipment assembly and decreasing labor hours. | |||||||
They were successful in 2021 and brought hours down by 5/hours/unit! | |||||||
The company provided a $1/hour raise! This also lead to an increase of $0.25/hour in payroll taxes. | |||||||
Manufacturing overhead: | |||||||
There were no changes in manufacturing overhead, no variance needs to be computed | |||||||
Using this information, computer the |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning