MANAGERIAL ACCOUNTING (CUSTOM LL)
17th Edition
ISBN: 9781264294633
Author: Garrison
Publisher: MCG
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Question
Chapter 9, Problem 9E
To determine
Introduction: The difference between the planning budget and the flexible budget is known as activity variance. It arises due to the difference between the planned activity level and the actual activity level.
The planning budget for June.
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QUESTION 8
Avery Company has compiled the following data for the upcoming year:
Sales are expected to be 13300 units at $31 each.
• Each unit requires 2.1 pounds of direct materials at $2.1 per pound.
• Each unit requires 0.7 hours of direct labor at $14 per hour.
Manufacturing overhead is $6 per unit.
Selling and administrative costs are $6 per unit
What is Avery's budgeted cost of goods sold?
M
Az
4. Lavage Rapide is a Canadian company that owns and operates a large automatic carwash
facility near Montreal. It has the following information to be used in preparing its flexible
budget:
The activity driver is the number of cars washed.
The expected revenue per car wash is $4.9
The company expects to wash 9,000 cars in August
The budgeted costs are as follows:
Electricity is $1,200 per month plus $0.15 per car
Depreciation is $6,000 per month
Rent is $8,000 per month
Cleaning supplies are $0.8 per car
Labor cost is $4,000 per month and $0.30 per car
Administrative expense is $5,000 per month and $0.30 per car
The company actually washed 8,800 cars during the year. Actual results were as follows:
Revenues were $40,800
Labor cost was $8,000
Administration was $5,000
Cleaning supplies were $7,400
Electricity was $2,650
What is the total profit in the planning budget for the month?
Question 5
rame Limited makes three products: A, B and C.
The budget for the following three months was as follows:
Sales units
Sales price per unit
Variable cost per unit
10
A
B
C
1,000
1,500
2,000
€31
€20
€10
€10
€8
€4
However, the machine which is used in the production of all three products has malfunctioned. A temporary repair job has been done, but the
total machine hours available for the next three months (until the replacement machine arrives) has been reduced to 4,800 hours.
Each unit of product A requires 3 machine hours, each unit of Product B requires 1 machine hour and each unit of Product C requires 0.75 hours.
On this basis, for the next three months, the product that Frame Limited will prioritise in relation to production is
Product
Under the revised plan, the production and sales of Product A will be
units.
Chapter 9 Solutions
MANAGERIAL ACCOUNTING (CUSTOM LL)
Ch. 9 - Prob. 1QCh. 9 - What is a flexible budget and how does it differ...Ch. 9 - Prob. 3QCh. 9 - Why is it difficult to interpret a difference...Ch. 9 - What is an activity variance and what does it...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Prob. 9QCh. 9 - Prob. 10Q
Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 2F15Ch. 9 - Prob. 3F15Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 -
L09-1, LO9-2, LO9-3
Adger Corporation is a...Ch. 9 - Prob. 8F15Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 10F15Ch. 9 - Prob. 11F15Ch. 9 - Prob. 12F15Ch. 9 - Prob. 13F15Ch. 9 - Prob. 14F15Ch. 9 - Prob. 15F15Ch. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 -
EXERCISE 9-3 Revenue and Spending Variances...Ch. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24CCh. 9 - Prob. 25CCh. 9 - Prob. 26C
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