(1) Concept introduction: Discrepancy (variance) analysis is the measurable examination of the variation between real and intended performance. This analysis is used to preserve control over a business. Journal entries of the company’s costs and discrepancy (variance) for the month of December.

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Answer 1

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Chapter 8, Problem 6PSA

To determine

(1)

Concept introduction:

Discrepancy (variance) analysis is the measurable examination of the variation between real and intended performance. This analysis is used to preserve control over a business.

Journal entries of the company’s costs and discrepancy (variance) for the month of December.

To determine

(2)

Management by exception is the exercise of probing the financial and working results of a business, and only bringing issues to the notice of management if the results correspond to significant differences from the forecasted or ordinary amount.

To explain:

Action manager considers who uses Management by exception. Also, identify the variances used by them.

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(d) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account, clearly showing the balance before closing the account. State the journal entries necessary to dispose of the variance. Assume that the manufacturing overhead variance is immaterial. (e) What is the balance in the Cost of Goods Sold account after the adjustment? (f) Compute Elite’s gross profit earned on the jobs sold, after adjusting for the manufacturing overhead variance (g) Post the appropriate entries to Work in Process Inventory account & determine the account balance on March 31, the end of the quarter.

Answer 2

Question

Chapter 8, Problem 6PSA

To determine

(1)

Concept introduction:

Discrepancy (variance) analysis is the measurable examination of the variation between real and intended performance. This analysis is used to preserve control over a business.

Journal entries of the company’s costs and discrepancy (variance) for the month of December.

To determine

(2)

Management by exception is the exercise of probing the financial and working results of a business, and only bringing issues to the notice of management if the results correspond to significant differences from the forecasted or ordinary amount.

To explain:

Action manager considers who uses Management by exception. Also, identify the variances used by them.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 8, Problem 6PSA

To determine

(1)

Concept introduction:

Discrepancy (variance) analysis is the measurable examination of the variation between real and intended performance. This analysis is used to preserve control over a business.

Journal entries of the company’s costs and discrepancy (variance) for the month of December.

To determine

(2)

Management by exception is the exercise of probing the financial and working results of a business, and only bringing issues to the notice of management if the results correspond to significant differences from the forecasted or ordinary amount.

To explain:

Action manager considers who uses Management by exception. Also, identify the variances used by them.

Expert Solution & Answer

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Answer 4

Question

Chapter 8, Problem 6PSA

To determine

(1)

Concept introduction:

Discrepancy (variance) analysis is the measurable examination of the variation between real and intended performance. This analysis is used to preserve control over a business.

Journal entries of the company’s costs and discrepancy (variance) for the month of December.

To determine

(2)

Management by exception is the exercise of probing the financial and working results of a business, and only bringing issues to the notice of management if the results correspond to significant differences from the forecasted or ordinary amount.

To explain:

Action manager considers who uses Management by exception. Also, identify the variances used by them.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 6PSA

To determine

(1)

Concept introduction:

Discrepancy (variance) analysis is the measurable examination of the variation between real and intended performance. This analysis is used to preserve control over a business.

Journal entries of the company’s costs and discrepancy (variance) for the month of December.

To determine

(2)

Management by exception is the exercise of probing the financial and working results of a business, and only bringing issues to the notice of management if the results correspond to significant differences from the forecasted or ordinary amount.

To explain:

Action manager considers who uses Management by exception. Also, identify the variances used by them.

Answer 6

Chapter 8, Problem 6PSA

To determine

(1)

Concept introduction:

Discrepancy (variance) analysis is the measurable examination of the variation between real and intended performance. This analysis is used to preserve control over a business.

Journal entries of the company’s costs and discrepancy (variance) for the month of December.

Answer 7

Chapter 8, Problem 6PSA

To determine

(1)

Concept introduction:

Discrepancy (variance) analysis is the measurable examination of the variation between real and intended performance. This analysis is used to preserve control over a business.

Journal entries of the company’s costs and discrepancy (variance) for the month of December.

Answer 8

To determine

(2)

Management by exception is the exercise of probing the financial and working results of a business, and only bringing issues to the notice of management if the results correspond to significant differences from the forecasted or ordinary amount.

To explain:

Action manager considers who uses Management by exception. Also, identify the variances used by them.

Answer 9

To determine

(2)

Management by exception is the exercise of probing the financial and working results of a business, and only bringing issues to the notice of management if the results correspond to significant differences from the forecasted or ordinary amount.

To explain:

Action manager considers who uses Management by exception. Also, identify the variances used by them.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 8 - Prob. 1MCQ Ch. 8 - Prob. 2MCQ Ch. 8 - Prob. 3MCQ Ch. 8 - A Company’s standard for a unit of its single...Ch. 8 - Prob. 5MCQ Ch. 8 - Prob. 1DQ Ch. 8 - Prob. 2DQ Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ

(1) Concept introduction: Discrepancy (variance) analysis is the measurable examination of the variation between real and intended performance. This analysis is used to preserve control over a business. Journal entries of the company’s costs and discrepancy (variance) for the month of December.

Solution Summary: The author explains that management by exception is the exercise of probing the financial and working results of a business, and only bringing issues to the notice of management.

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(1)

Concept introduction:

Discrepancy (variance) analysis is the measurable examination of the variation between real and intended performance. This analysis is used to preserve control over a business.

Journal entries of the company’s costs and discrepancy (variance) for the month of December.

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Chapter 8 Solutions