Chapter 8 Review Questions and Exercises. Completion Statements 1. The variable overhead flexible-budget variance subdivides into which two variances? Spending Variance and efficiency Variance. 2. To compute the budgeted variable overhead cost rate for a manufacturing company divide budgeted variable overhead costs by the budgeted quantity of the Cost allocation base. 3. To compute the budgeted fixed overhead cost rate for a manufacturing company‚ divide budgeted fixed overhead costs by the
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Grant’s Kitchens is approached by Ms. Tammy Wang‚ a new customer‚ to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers: Direct materials $455 Direct labor 300 Variable manufacturing support 45 Fixed manufacturing support 100 Total manufacturing costs 900 Markup (60%) 540 Targeted selling price $1440 Grant’s Kitchens has excess capacity. Ms. Wang wants the cabinets
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To: Jacques Trumen From: Subject: Compagnie du Froid Analysis Date: November 6‚ 2014 Memorandum Campagnie Du Froid is a summer ice-cream business founded in 1985 by the father of Jacques Truman. In 2007‚ after the passing of his father‚ Jacques Truman took over the business and emphasized an aggressive growth strategy. By 2009‚ Campagnie Du Froid was a market leader in the eastern part of France‚ northeastern coast of Spain‚ and northern Italy. Each region had its own manager and the main headquarters
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the resulting variances will be assigned to the cost of goods sold. If the variances are significant‚ they should be prorated to the cost of goods sold and to the inventories. Standard costing and the related variances is a valuable management tool. If a variance arises‚ management becomes aware that manufacturing costs have differed from the standard (planned‚ expected) costs. * If actual costs are greater than standard costs the variance is unfavorable. An unfavorable variance tells management
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Standard Cost Accounting Learning Objectives Describe the different standards used in determining standard costs. Determine procedures for recording standard costs. Compute and analyze variances. Prepare journal entries to record variances. Examine and interpret variances. Recognize the features of a standard cost system. Account for standard costs in a departmentalized factory. Distinguish between actual and applied factory overhead. Standard Costing •The purpose of standard cost accounting is to
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Principle of Accounting II‚ Exam 3‚ spring 2010 V 1-17. A flexible budget is a budget that: A. is updated with actual costs as they occur during the period. B. is updated to reflect the actual level of activity during the period. C. is prepared using a computer spreadsheet application. D. contains only variable production costs. 2-19. Marchi Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn’s guests appreciate its gourmet breakfasts and individually
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Resource: WileyPLUS Exercise E20-2 Exercise E20-5 Brief Exercise BE21-4 Exercise E22-5 Question 1 Zeller Electronics Inc. produces and sells two models of pocket calculators‚ XQ-103 and XQ-104. The calculators sell for $12 and $25‚ respectively. Because of the intense competition Zeller faces‚ management budgets sales semiannually. Its projections for the first 2 quarters of 2010 are as follows. Unit Sales Product Quarter 1 Quarter 2 XQ- 103 20‚000 25‚000 XQ-104 12‚000
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LAST NAME: _________________________ FIRST NAME___________________________ PUID________________________________Section________ Purdue University Krannert School of Management MGMT 201 – Managerial Accounting I Summer 2014 Practice Final Exam--SOLUTION This exam consists of 30 multiple choice questions on 10 pages (including this cover page) for a total of 120 points. Answer all questions. No partial credit is available for multiple choice questions. Be sure to put your answers to the
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Compagnie du Froid S.A. (#s in thousands) Variance Evaluations The CEO‚ Jacques Trumen‚ of Compagine discusses ambitious growth opportunities and the profit plan for three regions with very competent managers that strive to produce the best results for their division. The Italian and Spanish had favorable product mix variance of 68 and 4‚241‚ respectively. This additional profit both of these regions attained should be looked by Pierre and Andres and determine cost implications on “specialties”
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standard is expressed on a per unit basis. A standard might be viewed as the budgeted cost for one unit. 10-5 A variance is the difference between what was planned or expected and what was actually accomplished. A standard cost system has at least two types of variances. A price variance focuses on the difference between the standard price and the actual price of an input. A quantity variance is concerned with the difference between the standard quantity of the input allowed for the actual output and
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