Prepare a summary analysis of price and quantity variances

Assignment Help Accounting Basics

Reference no: EM131819232

Question: Similarity of Direct-Labor and Variable-Overhead Variances The Koh Company has had great difficulty controlling costs in Singapore during the past 3 years. Last month, the company installed a standard-cost and flexible-budget system. A condensation of results for a department follows:

The department had initially planned to manufacture 9,000 audio speaker assemblies in 6,000 standard direct-labor hours allowed. Material shortages and a heat wave resulted in the production of 8,100 units in 5,800 actual direct-labor hours. The standard wage rate is $5.25 per hour, which was $.15 higher than the actual average hourly rate.

1. Prepare a detailed performance report with two major sections: direct labor and variable overhead.

2. Prepare a summary analysis of price and quantity variances for direct labor and spending and efficiency variances for variable overhead.

3. Explain the similarities and differences between the direct-labor and variable-overhead variances. What are some of the likely causes of the overhead variances?

Reference no: EM131819232

Questions Cloud

Defining internal control in brief : Defining internal control Internal controls are designed to safeguard assets, encourage employees to follow company policies, promote operational efficiency.

Major corporations are franchised as public corporations : The majority of major corporations are franchised as public corporations. Discuss the key strength and weakness of the public corporation.”

After exhaustive negotiations : You are considering leasing a car. After exhaustive negotiations, Should you lease or purchase the car, if you plan to keep the car forever?

Discuss about the gender critique : Discuss the gender critique put forth my second wave feminist artists. How and why did they use visual art to critique issues of gender?

Prepare a summary analysis of price and quantity variances : Prepare a summary analysis of price and quantity variances for direct labor and spending and efficiency variances for variable overhead.

Determine why the static budget was not achieved : Is the manager's happiness justified? Prepare a report that might provide a more detailed explanation of why the static budget was not achieved.

Compute the price and quantity for direct materials : Compute the price, quantity, and flexible-budget variances for direct materials and direct labor. Use U or F to indicate whether the variances are unfavorable.

Fundamental economic principle of advanced economy : Savings represent money people earn but don't spend currently. Hence savings equals investment, a fundamental economic principle of an advanced economy.

The term of an investment can be described : The term of an investment can be described as either. The principal differences between capital markets and money markets are that.

User Account

All Pages