Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

problem 1: Borrico ltd produces a single product and they had recently introduced a system of budgeting and variance analysis. The given information is available for the month of July 2011:

1)                                                      Budget (Rs)       Actual (Rs)
Direct materials                                    200,000            201,285
Direct labor                                          313,625            337,500
Variable manufacturing overhead            141,400            143,000
Variable sales overhead                          64,400              69,500
Fixed manufacturing overhead                75,000              71,000
Administration costs                             150,000            148,650

2) Standard costs were:

Direct labor 48,250 hours at Rs 6.50 per hour
Direct materials 20,000 kg at Rs 10 per kg

3) Actual manufacturing costs were:

Direct labor 50,000 hours at Rs 6.75 per hour.
Direct materials 18,900 kg at Rs 10.65 per kg

4) Budgeted sales were 20,000 units at Rs 50 a unit.

Actual sales were:
15,000 units at Rs 52 a unit
5,200 units at Rs 56 a unit

5) There was no work in progress or inventory of the finished goods.

Required:

a) Compute the direct materials cost variance, direct materials price variance and direct materials usage variance.

b) Compute the direct labor cost variance, direct labor rate variance and direct labor efficiency variance.

c) What use can the management of Borrico Ltd make of the variances computed in (a) and (b) above?

problem 2: XYZ Company produces and markets a specific product which they sell at Rs 20 per unit. Present production is 400,000 units per month that represents 80% of capacity. They have the opportunity to use their surplus capacity by selling their product at Rs 13 per unit to an outside buyer. Total costs for the last month were Rs 5,600,000 of which Rs 1,600,000 were fixed cost. This represented a total cost of Rs 14 per unit.

Required: Based on the above financial information only, should XYZ Company allow the order?

problem 3: Describe the opportunity cost concept and why it is utilized in the decision making.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M96699

Have any Question? 


Related Questions in Cost Accounting

Case questions rio grande medical center cost allocation

CASE QUESTIONS RIO GRANDE MEDICAL CENTER Cost Allocation Concepts 1. Is it "fair" for the Dialysis Center to suffer in profitability, and hence for the department head to possibly lose his bonus, just because the Outpati ...

Questionyou are just from attending a conference on

QUESTION You are just from attending a conference on Activity Based Costing (ABC) and you now wish to put your knowledge to practice by applying the principles of ABC to the four products currently made and sold by your ...

Question 1pringle company distributes a single product the

Question 1. Pringle Company distributes a single product. The company's sales and expenses for a recent month follow:   Total    Per Unit   Sales $ 300,000   $ 20        Variable expenses   210,000     14          Contri ...

Accounting assignment1 punch products inc is considering

Accounting Assignment 1. Punch Products, Inc. is considering purchasing a new production machine and has assembled the following information from two vendors of the machine that it is considering buying:   A Products B P ...

Case questionsmarriott corporation the cost of capital

Case Questions Marriott Corporation: The Cost of Capital (Abridged) 1. What is the weighted average cost of capital for Marriott Corporation? a. What risk-free rate and risk premium did you use to calculate the cost of e ...

Assignmentdolan products is a small family owned audio

Assignment Dolan Products is a small, family owned audio component manufacturer. Several years ago, the company decided to concentrate on only three models, which were sold under many brand names to electronic retailers ...

Assignment cost accountingoverviewthe final project for

Assignment: Cost Accounting Overview The final project for this course is the creation of a quantitative analysis with a memo to management. Classifying a company's costs allows for an in-depth analysis of the impact tha ...

Company expansion - internationallocate the financial

Company Expansion - International Locate the financial information for a company that has only domestic manufacturing operations. Assume management desires to expand into the global market with its current products. The ...

Quiz1 a process cost system would be used for all of the

QUIZ 1 A process cost system would be used for all of the following products except computer chips. chemicals. motion pictures. soft drinks. 2 Differences between a job order cost system and a process cost system include ...

Write 500 words that respond to the following

Write 500 words that respond to the following questions: • Discuss what absorption, variables, and throughput costing are. • Determine when each would be used. • Provide an explanation and example of all three.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro