Solution-Calculate the flexible budget variances for direct

Calculate the flexible budget variances for direct materials

Assignment Help Cost Accounting

Reference no: EM132800777

Question - Baker Industries is a manufacturer of Craft Beer. For November 2020, Baker had budgeted the following amounts for one unit (Keg) of its most popular product Caper:

Direct Material 14 litres @ $3.25 per litre

Direct Labour 3.5 hours @ $21 per hour

Actual data for the month of November was as follows:

Budgeted output of Caper 2,500 units

Actual output of Caper 2,400 units

Litres purchased and used 34,800 litres, total cost $107,880

Total labour costs, $178,450

Actual hours used 8,600 hours.

Required -

1. Calculate the Flexible Budget variances for

a. Direct Materials

b. Direct Labour

2. Calculate the Price and Rate Variances for

a. Direct Materials

b. Direct Labour

3. Comment on the results.

Reference no: EM132800777

Questions Cloud

Compute the ending work in process balance : Randall, the accountant is trying to prepare the schedule of cost of goods manufactured and the schedule of cost of goods sold for March

What is the amount of the relevant initial investment : A company is looking to purchase and replace a fixed asset for $245,000. The firm's tax rate is 35%. What is the amount of the relevant initial investment

What adjusting entry will tanning company make : What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,600 before adjustment

What were the forces that led european countries : What were the forces that led European countries, particularly Spain, to explore the New World? What was the impact of European conquest on the population.

Calculate the flexible budget variances for direct materials : Baker Industries is a manufacturer of Craft Beer. Actual output of Caper 2,400 units. Calculate the Flexible Budget variances for Direct Materials

What is a circadian rhythm : 1. How do you minimize any dangers that may lurk unnoticed in the office?

Is space exploration the domain of the world leading nations : What did it mean for the U.S. and USSR during the Cold War? How does the space program benefit the U.S. national economy in general?

What is maslow hierarchy of needs : Describe these needs and how they can be used within the workplace environment to motivate and inspire staff.

Discuss how rh incompatibility affects subsequent pregnancy : Discuss how RH incompatibility affects subsequent pregnancy in RH (+) mother

User Account

All Pages

Calculate the flexible budget variances for direct materials

Reference no: EM132800777

Reference no: EM132800777

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT