Compute the flexible budget and production volume variances

Assignment Help Accounting Basics
Reference no: EM131623792

Question - Geller Cellars produce bourbon in two almost identical production facilities-the Monica and Ross plants. The managers of both plants each budgeted $80,000 of factory overhead cost to manufacture 1,000 units (bottles of bourbon) in each plant for the current year. The overhead at the Monica plant is assumed to be all fixed, while half of the budgeted factory overhead at the Ross plant is considered variable (and the other half is fixed). At the end of the year, each plant manufactured 850 units. The actual factory overhead incurred by each plant amounted to $80,000.

1. For each plant, compute the flexible budget and production volume variances for total overhead. Indicate whether each variance is favorable or unfavorable.

2. Which the plant manager play a better job in controlling overhead costs? Explain briefly.

Reference no: EM131623792

Questions Cloud

Calculate the net present value : Calculate the net present value, ignoring the additional benefits described by Rick should the tow truck be purchased
Companies with predictable and stable earnings : He also argued that he should use a "risk-free" discount rate in determining intrinsic values because he avoids risk, saying that his firm focused on companies.
Calculate the annual rate of return on the project : Pierre's hair Salon in considering opening a new location in French Lick, California. Calculate the annual rate of return on the project
Contrast a sales-type lease with a direct-financing lease : Sales-type leases and direct-financing leases are two of the classifications of leases described in FASB pronouncements from the standpoint of the lessor.
Compute the flexible budget and production volume variances : compute the flexible budget and production volume variances for total overhead. Indicate whether each variance is favorable or unfavorable
What kind of evidence the auditors found : What kind of evidence the auditors found which indicated the company did not follow Generally Accepted Accounting Principles (GAAP)
Research a quote about language and thought : Have you ever experienced a challenging situation with someone of a different religion? What influenced your response?
What are bond ratings and how do they affect ability of firm : What are bond ratings and how do they affect the ability of the firm to raise funds? Are these ratings similar to the ratings for a country or a company?
Evaluate the ethical argument faced by multinational : Evaluate the ethical argument faced by a multinational for and against free trade as suggested by TTIP.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Dring the current year john invests in undeveloped land

during the current year john invests in undeveloped land. in the current year he recieves no rent but does pay taxes

  Compute the earnings per share of common stock

Quayle Corporation reports net income of $380,000 and a weighted average of 200,000 shares of common stock outstanding for the year. Compute the earnings per share of common stock.

  Ramirez company received their first electric bill in the

1. ramirez company received their first electric bill in the amount of 60 which will be paid next month. how will this

  Explain the primary advantages of applying direct write-off

Discuss the primary advantages and disadvantages of applying the direct write-off over the allowance method of writing off accounts. Take a position on whether or not estimating the allowance for doubtful accounts provides the opportunity to disto..

  Why are pro-forma financial statements important to the

1. why are pro-forma financial statements important to the financial planning process?2. how can break-even analysis

  In the month of november coler company inc wrote checks in

in the month of november coler company inc. wrote checks in the amount of 9250. in december checks in the amount of

  For financial accounting purposes assets of an individual

for financial accounting purposes assets of an individual partner contributed to a partnership are recorded by the

  During september 2012 the business completed the following

during september 2012 the business completed the following transactionsa. issued common stock and received cash of

  In legal form a partnership ends when a partner leaves the

in legal form a partnership ends when a partner leaves the partnership or a new aprtner joins the partnership. though

  Journal entries of solomon company

On January 1, 2006, Solomon Company purchased the following two machines for use in its production process. The journal entry to record its purchase on January 1, 2006.

  Describe extensive review of the inventory count sheets

Late Appointment of Auditors. Anderson, Olds, & Watershed (AOW) has completed the audit of the financial statements of Musgrave Company for the year ended.

  Employer payroll tax expense

The company is subject to state unemployment taxes at the rate of 2% and federal unemployment taxes at the rate of 0.8%. By May 15, some employees had earned over $7,000, so only $9,000 of the $20,000 weekly gross pay was subject to unemployment t..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd