EBK HORNGREN'S ACCOUNTING
11th Edition
ISBN: 8220101338631
Author: Matsumura
Publisher: YUZU
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Textbook Question
Chapter 23, Problem P23.26APGA
Preparing a flexible budget computing
Kyler Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Kyler allocates
The company’s performance report includes the following selected data: | |||
Static Budget (1,025 recliners) | Actual Results (1,005 recliners) |
||
Sales | (1,025 recliners × $495 each) | $ 507,375 | |
(1,005 recliners × $485 each) | $ 487,425 | ||
Variable |
|||
Direct Materials | (6,150 yds. @ $8.90/yd.) | 54,735 | |
(6,300 yds. @ $8.70/yd.) | 54,810 | ||
Direct Labor | (10,250 DLHr @ $9.00/DLHr) | 92,250 | |
(9,850 DLHr @ $9.10/DLHr) | 89,635 | ||
Variable Overhead | (6,150 yds. @ $5.10/yd) | 31,365 | |
(6,300 yds @ $6.50/yd.) | 40,950 | ||
Fixed Manufacturing Costs | |||
Fixed Overhead | |||
62,730 | 64,730 | ||
Total Cost of Goods Sold | 241,080 | 250,125 | |
Gross Profit | |||
S 266,295 | 5 237,300 |
Requirements
- Prepare a flexible budget, based on the actual number of recliners sold.
- Compute the cost variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhead, compute the variable overhead cost, variable overhead efficiency, fixed overhead cost, and fixed overhead volume variances. Round to the nearest dollar.
- Have Kyler’s managers done a good job or a poor job controlling materials, labor, and overhead costs? Why?
- Describe how Kyler’s managers can benefit from the standard cost system.
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EBK HORNGREN'S ACCOUNTING
Ch. 23 - Prob. 1QCCh. 23 - MajorNet Systems is a start-up company that makes...Ch. 23 - MajorNet Systems is a start-up company that makes...Ch. 23 - MajorNet Systems is a start-up company that makes...Ch. 23 - MajorNet Systems has budgeted three hours of...Ch. 23 - MajorNet Systems has budgeted three hours of...Ch. 23 - FrontGrade Systems allocates manufacturing...Ch. 23 - FrontGrade Systems allocates manufacturing...Ch. 23 - FrontGrade Systems allocates manufacturing...Ch. 23 - The person probably most responsible for the...
Ch. 23 - HajorNet System’s static budget predicted...Ch. 23 - What is a variance?Ch. 23 - Explain the difference between a favorable and an...Ch. 23 - What is a static budget performance report?Ch. 23 - How do flexible budgets differ from static...Ch. 23 - How is a flexible budget used?Ch. 23 - What are the two components of the static budget...Ch. 23 - What is a flexible budget performance report?Ch. 23 - What is a standard cost system?Ch. 23 - Explain the difference between a cost standard and...Ch. 23 - Give the general formulas for determining cost and...Ch. 23 - How does the static budget affect cost and...Ch. 23 - List the direct materials variances, and briefly...Ch. 23 - List the direct labor variances, and briefly...Ch. 23 - List the variable overhead variances, and briefly...Ch. 23 - List the fixed overhead variances, and briefly...Ch. 23 - How is the fixed overhead volume variance...Ch. 23 - What is management by exception?Ch. 23 - List the eight product variances and the manager...Ch. 23 - Briefly describe how journal entries differ in a...Ch. 23 - What is a standard cost income statement?Ch. 23 - Matching terms Learning Objective 1 Match each...Ch. 23 - Prob. S23.2SECh. 23 - Prob. S23.3SECh. 23 - Matching terms Learning Objective 2 Match each...Ch. 23 - Identifying the benefits of standard costs...Ch. 23 - Prob. S23.6SECh. 23 - Prob. S23.7SECh. 23 - Interpreting material and labor variances Learning...Ch. 23 - Prob. S23.9SECh. 23 - Prob. S23.10SECh. 23 - Prob. S23.11SECh. 23 - Prob. S23.12SECh. 23 - Prob. S23.13SECh. 23 - Prob. S23.14SECh. 23 - Prob. E23.15ECh. 23 - Prob. E23.16ECh. 23 - Prob. E23.17ECh. 23 - Prob. E23.18ECh. 23 - Prob. E23.19ECh. 23 - Prob. E23.20ECh. 23 - Prob. E23.21ECh. 23 - Prob. E23.22ECh. 23 - Preparing journal entries Hayesvillc Company uses...Ch. 23 - Prob. E23.24ECh. 23 - Prob. P23.25APGACh. 23 - Preparing a flexible budget computing standard...Ch. 23 - Prob. P23.27APGACh. 23 - P23-28A Computing and journalizing standard cost...Ch. 23 - Prob. P23.29APGACh. 23 - Prob. P23.30BPGBCh. 23 - Preparing a flexible budget computing standard...Ch. 23 - P23-32B Computing standard cost variances and...Ch. 23 - P23-33B Computing and journalizing standard cost...Ch. 23 - Preparing a standard cost income statement...Ch. 23 - Prob. P23.35CPCh. 23 - Decision Case 23-1 Suppose you manage the local...Ch. 23 - Fraud Case 23-1 Drew Castello, general manager of...
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