Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Headsmart produces headphone cases.  In  September 2011, company made 106,000 cases and recorded cost data given below:

 

Standard Cost Information

 

Quantity

Price

Direct materials

2 parts

$0.17 per part

Direct labor

0.02 hours

$9.00 per hour

Variable manufacturing overhead

0.02 hours

$10.00 per hour

 

Fixed manufacturing overhead ($32,640 for static budget volume of 96,000 units and 1,920 units and 1,920 hours, or $17 per hour)

 

Direct materials (265,000 parts were bought at $0.22 per part, 215,000 parts were used)

 

Direct labor (1,700 hours at $9.10 per hour=$15,652)

 

Manufacturing overhead $60,500 (30% was fixed)

 

a) Find out eight variances

 

1. Materials: VP=(AP-SP)AQ-(actual price-standard price)*actual quantity

 

   VQ=(AQ-SQ)*SP

 

2. Direct labor: VP=(AP-SP)*AQ  and VQ=(AQ-SQ)*SP

 

3. Variable overhead: VP=(AP-SP)*AQ  and VQ=(AQ-SQ)*SP

 

4. Fixed overhead:  SPENDING VARIANCE= actual fixed overhead incurred- fixed factory overhead budgeting

 

Production volume variance = fixed factory overhead budgeting - standard fixed overhead applied

 

b) Comment on variances

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916864

Have any Question? 


Related Questions in Accounting Basics

Define pat positive accounting theorytheoretical definition

Define PAT (positive accounting theory). Theoretical Definition of PAT and, implication and describe the limitation with the contribution and its significance. Write about the agency theory (An individual action is drive ...

Accountingimagine that you are a consultant working on a

Accounting Imagine that you are a consultant working on a special project to help a company determine techniques that it can use in order to calculate the fair value of investments. From the e-activity, prepare a report ...

Question 1the following information relates to the

Question 1 The following information, relates to the imputation credit account (ICA) for Killorglin Park Fair Ltd ("Killorglin Park") for the year ending 31 March 2016. (i) The shareholders as at 31 March 2015 were Donna ...

Assignmentapplication implementation of the balanced

Assignment Application: Implementation of the Balanced Scorecard APA Format Implementation of the Balanced Scorecard The term "balanced scorecard" became part of the professional accounting vernacular in the early 1990s. ...

Assume a local subway reported the following results for

Assume a local Subway reported the following results for April and May August September Unit Sales      2,000             2,500 Cost of Food Sold  $   1,000  $         1,250 Wages and Salaries      1,525             1,67 ...

Consider the following scenarioandre has asked you to

Consider the following scenario: Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-h ...

Accounting discussion questionbulldiscuss the advantages of

Accounting Discussion Question • Discuss the advantages of understanding accounting as it relates to your current or future position. (Consider careers in management, sales, business operations, finance, and business own ...

Question 1 owners of business firms are the only people who

Question 1 Owners of business firms are the only people who need accounting information. Question 2  Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote oper ...

International accounting1 when discussing foreign currency

International Accounting 1. When discussing foreign currency exchange, there are several arrangements. List two of these. 2. A _________ is a contract between two or more parties. 3. What are the timelines for the new re ...

Question 1grammys bakery had the following information for

Question 1 Grammy's Bakery had the following information for the pay period ending June 30: Employee Name Pay Rate Hours Worked Cumulative Earnings Department Federal Income Tax Withheld P. Ganster $2,000 Salaried $12,00 ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen