The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance . Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost , and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently. Activity variances of Company FAB

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Answer 1

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Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 9, Problem 18P

1.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Activity variances of Company FAB

2.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Spending variances of Company FAB

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1 Book References Problem 9-18 (Algo) Activity and Spending Variances (LO9-1, LO9-2, LO9-3) You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs" You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,500 $0.12 per nachine-hour $30,000+ 81.40 per machine-hour 50.70 per machine-hour $94,100 $1.70 per machine-hour $67,800 Actual Cost in March $ 21,180 $ 66,200 $ 16,600 $ 135,800 $ 69,500 During March, the company worked 22,000 machine-hours and produced…

Problem 9-23 (Algo) Flexible Budgets and Spending Variances [LO9-1, LO9-2] You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula Actual Cost in March Utilities $16,500 + $0.19 per machine-hour $ 21,530 Maintenance $38,000 + $1.50 per machine-hour $ 57,300 Supplies $0.60 per machine-hour $ 10,000 Indirect labor $94,600 + $1.90 per machine-hour $ 127,800 Depreciation $67,700 $ 69,400 During March, the company worked 15,000 machine-hours…

having trouble fing the variances this is what question is and this is my answer ACC 202 Milestone Three: Actual Costs and Revenue Data Appendix At the end of the first month of opening your business, you calculate the actual operating costs of the business and the income you earned. You also notice and document the difference in what you budgeted for certain materials and labor against the actual amounts you spent on the same. For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month: Materials purchased: $20,000 Consumed 80% of the purchased materials Direct labor: $8,493 Overhead costs: $3,765 Note: Assume that the beginning materials and ending work in process are zero for the month. Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for…

Answer 2

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 9, Problem 18P

1.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Activity variances of Company FAB

2.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Spending variances of Company FAB

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Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 9, Problem 18P

1.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Activity variances of Company FAB

2.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Spending variances of Company FAB

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Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 9, Problem 18P

1.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Activity variances of Company FAB

2.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Spending variances of Company FAB

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Answer 5

Chapter 9, Problem 18P

1.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Activity variances of Company FAB

2.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Spending variances of Company FAB

Answer 6

Chapter 9, Problem 18P

1.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Activity variances of Company FAB

Answer 7

Chapter 9, Problem 18P

1.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Activity variances of Company FAB

Answer 8

2.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Spending variances of Company FAB

Answer 9

2.

To determine

The difference between the actual cost or price and the budgeted (standard) cost or price is referred to as variance. Variance can either be favorable or unfavorable depending upon the various situations. The variance is favorable when the actual cost is less than the standard cost, and vice versa. A favorable variance implies that direct material, labor, and overheads are used efficiently. An unfavorable variance occurs when the company pays more than the standard costs or applies direct materials, labor, and overheads inefficiently.

Spending variances of Company FAB

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 9 - Prob. 1Q Ch. 9 - What is a flexible budget and how does it differ...Ch. 9 - Prob. 3Q Ch. 9 - Why is it difficult to interpret a difference...Ch. 9 - What is an activity variance and what does it...Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - Prob. 10Q

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