Your boss called you into the office and reprimanded you

Reference no: EM13484743

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) Actual 38,000 Static Budget 35,000 Variances

Variable Overhead Costs:

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 $0.40 per machine hour

Indirect Labor $2.30 per machine hour

Supplies $0.60 per machine hour

Maintenance $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.

Required:

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

Reference no: EM13484743

Questions Cloud

What are some limitations of capital market : what are some limitations of capital market

Compute the contribution margin for the pet supplies : the following information is available for pet store company and its two divisions pet supplies and training.whole

Prepare a listing of the accounts receivable customer : autumn cove inc. has 2010 in the december 1 balance of the accounts receivable account consisting of 880 from the

Calculate the cash providedused for each cash flow category : walters inc. began operations on january 1 2009. the following information relates to walters cash flows during

Your boss called you into the office and reprimanded you : sunday corporation prepared the following performance report for variable overhead costs for the last quarter of the

John corp appropriately uses the installment method of : john corp appropriately uses the installment method of accounting to recognize income in its financial statements.

Which investment would you prefer why round your percentage : two acquaintances have approached you about investing in business activities in which each is involved. julie is

Credit sales are 80 of total sales collections of credit : corporation has the following sales budgetmonth budgeted salesmay 84000june 100000july 92000august 110000september

If investors are well diversified eg own several hundred : if investors are well diversified e.g. own several hundred stocks will they have a greater or lesser need for

User Account

All Pages