Zain company has a bottling plant for its drinks and has prepared flexible budgets:Flexible budgetsBottles:15,00018,00022,000Production costs:$Materials30,00038,00044,000Labor45,00054,00066,000Overhead25,00025,00025,000Actual production was 19,500 bottles and the production costs incurred totalled$120,000.Instructions:What is the meaningful total variance for performance evaluation purposes?

Flexible budget: A flexible budget is a budget prepared by the company for effective evaluation of…

Answered: What is the meaningful total variance…

Business

Accounting

What is the meaningful total variance for performance evaluation purposes?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 8E: Using the following per-unit and total amounts, prepare a flexible budget at the 14,000-, 15,000-,...

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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Fargo Co. manufactures products in batches of 100 units per batch. The company uses a standard cost system and prepares budgets that call for 500 of these batches per period. Budgeted fixed overhead is $60,000 per period. The standard costs per batch follow: During the period, 503 batches were manufactured, and the following costs were incurred: Required: Calculate the variances for materials, labor, and overhead. For overhead, use the two-variance method. (Hint: Please use the information given about the budgeted fixed overhead to compute the variable overhead rate.)
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