Research the related generally accepted accounting principles and prepare a short memo to the president. Cite your references and applicable paragraph numbers.
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A: Hey, since there are multiple questions posted, we will answer first question. If you want any…
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A: Variances arise because of differences between actual results and budgeted results.
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A: 1 Standard data is calculated by considering budgeted data and using actual data. 2…
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A: The first level breakdown of the total operating income variance is the static budget variance for…
Q: Please Help
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Q: In 2020 standard cost variance analysis report presented by the controller of ABC Corporation, the…
A: Since you have asked multiple questions, we will solve the first question for you . If you want any…
Q: As part of its cost control program, Tracer Company uses a standard costing system for all…
A:
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Q: n 2020 standard cost variance analysis report presented by the controller of ABC Corporation, the…
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Q: Which of the following statements might cause a labor efficiency variance? Statement 1 – Hiring of…
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A: ''Since you have posted a question with multiple-parts, we will solve the first three sub-parts for…
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A: Given: Standard Costing; Variance Analysis; Strategic Considerations In a Wall Street Journal…
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Q: please help
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Q: PART II — TRUE/FALSE Instructions: Designate whether each of the following statements is true or…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: volume variance
A: Sales volume variance measures the difference between the actual units sold and the budgeted units…
Q: Record the materials costs, including the unfavorable quantity and favorable price variances. Note:…
A: Materials price variance is the difference between the actual price paid for materials to budgeted…
Q: Which of the following about gross profit variance analysis is most correct? * Gross profit variance…
A: A gross profit analysis involves comparing the gross profit for the period being reviewed to either…
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A: Direct Materials Price Variance = (Actual price - Standard price) x Actual quantity =…
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A: SOLUTION A- Particulars Amount…
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Q: a) For direct materials calculate the price and quantity variances for the year. b) For direct…
A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…
Q: Using the following data from the records of Starts Inc. for November of the current year, prepare…
A: Formulas:
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Q: Computing standard cost variances and reporting to management Headset manufactures headphone cases.…
A: 1.
Q: Required: (a) Calculate the variable manufacturing overhead and fixed manufacturing overhead…
A: 1) Variable overhead variance = variable overhead efficiency variance + variable overhead rate…
Q: . In 2020 standard cost variance analysis report presented by the controller of ABC Corporation, the…
A: Solution Note Dear student as per the Q&A guideline we are required to answer the first question…
Q: Which of the following statements are true? a. The standard price of materials should include…
A: Solution: a. True, standard price of materials should include delivery charges and any discount b.…
Q: Required 1. The CEO asked you to recalculate the direct material purchase variance and the fixed…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: A company purchases 48000 pounds of materials. The materials price variance is $12000 favorable.…
A: Materials price variance is the difference between the price paid to purchase the actual quantity…
Q: Standard Cost Flows; Income Statement Preparation Forsyth Company manufactures one product, it does…
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Q: A business is reporting on materials cost variances for the month. The report indicates a large…
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Situation
Fenimore Manufacturing Company uses the average cost method. It has followed a policy of expensing all its
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Research the related generally accepted accounting principles and prepare a short memo to the president. Cite your references and applicable paragraph numbers.
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- Warner Company has the following data for the past year: Warner uses the overhead control account to accumulate both actual and applied overhead. Required: 1. Calculate the overhead variance for the year and close it to cost of goods sold. 2. Assume the variance calculated is material. After prorating, close the variances to the appropriate accounts and provide the final ending balances of these accounts. 3. What if the variance is of the opposite sign calculated in Requirement 1? Provide the appropriate adjusting journal entries for Requirements 1 and 2.As part of its cost control program, Tracer Company uses a standard costing system for all manufactured items. The standard cost for each item is established at the beginning of the fiscal year, and the standards are not revised until the beginning of the next fiscal year. Changes in costs, caused during the year by changes in direct materials or direct labor inputs or by changes in the manufacturing process, are recognized as they occur by the inclusion of planned variances in Tracers monthly operating budgets. The following direct labor standard was established for one of Tracers products, effective June 1, 2012, the beginning of the fiscal year: The standard was based on the direct labor being performed by a team consisting of five persons with Assembler A skills, three persons with Assembler B skills, and two persons with machinist skills; this team represents the most efficient use of the companys skilled employees. The standard also assumed that the quality of direct materials that had been used in prior years would be available for the coming year. For the first seven months of the fiscal year, actual manufacturing costs at Tracer have been within the standards established. However, the company has received a significant increase in orders, and there is an insufficient number of skilled workers to meet the increased production. Therefore, beginning in January, the production teams will consist of eight persons with Assembler A skills, one person with Assembler B skills, and one person with machinist skills. The reorganized teams will work more slowly than the normal teams, and as a result, only 80 units will be produced in the same time period in which 100 units would normally be produced. Faulty work has never been a cause for units to be rejected in the final inspection process, and it is not expected to be a cause for rejection with the reorganized teams. Furthermore, Tracer has been notified by its direct materials supplier that lower-quality direct materials will be supplied beginning January 1. Normally, one unit of direct materials is required for each good unit produced, and no units are lost due to defective direct materials. Tracer estimates that 6 percent of the units manufactured after January 1 will be rejected in the final inspection process due to defective direct materials. Required: 1. Determine the number of units of lower quality direct materials that Tracer Company must enter into production in order to produce 47,000 good finished units. 2. How many hours of each class of direct labor must be used to manufacture 47,000 good finished units? 3. Determine the amount that should be included in Tracers January operating budget for the planned direct labor variance caused by the reorganization of the direct labor teams and the lower quality direct materials. (CMA adapted)Madison Company uses the following rule to determine whether direct labor efficiency variances ought to be investigated. A direct labor efficiency variance will be investigated anytime the amount exceeds the lesser of 12,000 or 10 percent of the standard labor cost. Reports for the past five weeks provided the following information: Required: 1. Using the rule provided, identify the cases that will be investigated. 2. Suppose that investigation reveals that the cause of an unfavorable direct labor efficiency variance is the use of lower quality direct materials than are usually used. Who is responsible? What corrective action would likely be taken? 3. Suppose that investigation reveals that the cause of a significant favorable direct labor efficiency variance is attributable to a new approach to manufacturing that takes less labor time but causes more direct materials waste. Upon examining the direct materials usage variance, it is discovered to be unfavorable, and it is larger than the favorable direct labor efficiency variance. Who is responsible? What action should be taken? How would your answer change if the unfavorable variance were smaller than the favorable?
- Using variance analysis and interpretation Last year, Wrigley Corp. adopted a standard cost system. Labor standards were set on the basis of time studies and prevailing wage rates. Materials standards were determined from materials specifications and the prices then in effect. On June 30, the end of the current fiscal year, a partial trial balance revealed the following: Standards set at the beginning of the year have remained unchanged. All inventories are priced at standard cost. What conclusions can be drawn from each of the four variances shown in Wrigleys trial balance?Sommers Company uses the following rule to determine whether materials usage variances should be investigated: A materials usage variance will be investigated anytime the amount exceeds the lesser of 12,000 or 10% of the standard cost. Reports for the past 5 weeks provided the following information: Required: 1. Using the rule provided, identify the cases that will be investigated. 2. CONCEPTUAL CONNECTION Suppose investigation reveals that the cause of an unfavorable materials usage variance is the use of lower-quality materials than are normally used. Who is responsible? What corrective action would likely be taken? 3. CONCEPTUAL CONNECTION Suppose investigation reveals that the cause of a significant unfavorable materials usage variance is attributable to a new approach to manufacturing that takes less labor time but causes more material waste. Examination of the labor efficiency variance reveals that it is favorable and larger than the unfavorable materials usage variance. Who is responsible? What action should be taken?Using variance analysis and interpretation Last year, Endicott Corp. adopted a standard cost system. Labor standards were set on the basis of time studies and prevailing wage rates. Materials standards were determined from materials specifications and the prices then in effect. On June 30, the end of the current fiscal year, a partial trial balance revealed the following: Standards set at the beginning of the year have remained unchanged. All inventories are priced at standard cost. What conclusions can be drawn from each of the four variances shown in Endicotts trial balance?
- Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Unadjusted Cost of Goods Sold equals 1,500,000, unadjusted Work in Process equals 236,000, and unadjusted Finished Goods equals 180,000. Required: 1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to Cost of Goods Sold. What is the adjusted balance in Cost of Goods Sold after closing out the variances? 2. What if any ending balance in a variance account that exceeds 10,000 is considered material? Close the immaterial variance accounts to Cost of Goods Sold and prorate the material variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is 1,050,000, the prime cost in Work in Process is 165,200, and the prime cost in Finished Goods is 126,000. What are the adjusted balances in Work in Process, Finished Goods, and Cost of Goods Sold after closing out all variances? (Round ratios to four significant digits. Round journal entries to the nearest dollar.)Which of the following is true concerning labor variances that are not material in amount? a. They are closed to Cost of Goods Sold. b. They are prorated among Work in Process, Finished Goods, and Cost of Goods Sold. c. They are prorated among Materials, Work in Process, Finished Goods, and Cost of Goods Sold. d. They are reported as part of Overall Variance on the balance sheet at the end of the year.(Appendix 10A) Which of the following is true concerning labor variances that are not material in amount? a. They are closed to Cost of Goods Sold. b. They are prorated among Work in Process, Finished Goods, and Cost of Goods Sold. c. They are prorated among Materials, Work in Process, Finished Goods, and Cost of Goods Sold. d. They are reported on the balance sheet at the end of the year. e. All of these.
- Data for Torleson Company are as follows: Required: 1. Calculate the sales price variance. 2. Calculate the sales volume variance. 3. Suppose that the product is in the introductory stage of the product life cycle. What information do these two variances provide to Torlesons managers?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.Refer to the information for Cinturon Corporation on the previous page. Required: 1. Break down the total variance for labor into a rate variance and an efficiency variance using the columnar and formula approaches. 2. CONCEPTUAL CONNECTION As part of the investigation of the unfavorable variances, the plant manager interviews the production manager. The production manager complains strongly about the quality of the leather strips. He indicates that the strips are of lower quality than usual and that workers have to be more careful to avoid a belt with cracks and more time is required. Also, even with extra care, many belts have to be discarded and new ones produced to replace the rejects. This replacement work has also produced some overtime demands. What corrective action should the plant manager take?
