Flexible budget variances and the activity-level variances

Assignment Help Financial Accounting

Reference no: EM13755026

Sunday Corporation prepared the following performance report for variable overhead costs for the last quarter of the year. Machine hours are the cost driver for all overhead costs. Cost Driver(Machine Hours) Variable Overhead Costs: Actual 38,000 Static Budget 35,000 Variances Utilities $15,700 $14,000 $1,700 U Indirect Labor 86,500 80,500 6,000 U Supplies 26,000 21,000 5,000 U Maintenance 44,900 42,000 2,900 U Total Variable Overhead Costs $173,100 $157,500 $15,600 U The cost formulas used for the variable overhead costs are: Variable Overhead Costs Cost Formula Utilities Indirect Labor Supplies Maintenance $0.40 per machine hour $2.30 per machine hour $0.60 per machine hour $1.20 per machine hour Your boss called you into the office and reprimanded you for the unfavorable variances. The boss says you are fired unless you can explain why the variances are all unfavorable.

Calculate the flexible budget variances and the activity-level variances for each cost.

Reference no: EM13755026

Questions Cloud

Decline in the price of bacon : 1. If the demand for bacon is relatively elastic, a 10 percent decline in the price of bacon will:

Uses the double-declining depreciation method : On 2010 July 1, Frick Company purchased equipment for $400,000, and installation and testing costs totaled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40,000. If Frick uses the double-declining d..

Explore daguerreotype process at metropolitan museum of art : Explore the daguerreotype process at The Metropolitan Museum of Art website. How do early and modern photos differ in the creative process of image production?

Flexible budget variances and the activity-level variances : Sunday Corporation prepared the following performance report for variable overhead costs for the last quarter of the year. Machine hours are the cost driver for all overhead costs. Calculate the flexible budget variances and the activity-level varian..

Do ides help or hinder newbies learning to code : Do IDEs help or hinder newbies learning to code? Should they first be exposed to a text editor without a lot of fancy features to learn how to set things up

The cost of ending inventory using weighted-average : Frick Company began the accounting period with inventory of 3,000 units at $30 each. During the period, the company purchased an additional 5,000 units at $36 each and sold 4,600 units. Assume the use of periodic inventory procedure. The cost of endi..

Statements regarding traditional costing systems : Consider the following statements regarding traditional costing systems: Many traditional costing systems: The relationship between cost and activity is termed: Which of the following costs changes in direct proportion to a change in the activity lev..

Installing the nmap security scanner : Downloading and Installing the Nmap Security Scanner: Nmap is a port scanner. It sends packets to the target and monitors the responses to discover what network services are listening on that computer. It is a favorite tool for security profession..

User Account

All Pages