level achieved. Here increased sales units could be analyzed given the budgeted rates for variable costs and fixed expenses. The flexible budget enables an analysis of the variances related to selling price‚ sales volume‚ sales mix‚ variable cost per unit‚ and total fixed costs. The breakdown of total operating income variance is attached for your reference. Below is a detailed analysis of the findings. ANALYSIS In 2010 store 88 increased pet grooming services from the 10‚000 budgeted to 10
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Assignment 1: Variance Analysis Report In order to perform a variance analysis report Jenkins calculated the actual revenues and expenses and found the difference which was $296‚610 in profits. Then Jenkins did the same with budgeted values and found the budgeted profits to be $606‚350. The variance amount in turn is $309‚960 under budget. Also‚ the variance amount for revenues is $32‚100. This number is favorable due to the fact that they made more than what they had budgeted for. But on the contrary
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as good as a company’s capacity to implement it effectively. But most importantly‚ many employees see the new system as an end in itself‚ instead of a means to an end. The way standards are formulated play a crucial role in the results of these variances. For instance‚ management decided to use the sales forecasts based on what they made and incurred in the previous year. This would normally be the case‚ if the company had limited growth prospects. Reporting in aggregate may not allow a company to
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first impressions. Participants were presented with a list of adjectives that described a hypothetical person. They were to form impressions about that individuals personality based on that list. The presentation order was counterbalanced with favorable‚ unfavorable‚ and neutral descriptors. These lists would be the sole basis of the formation of their impressions. Measurements were based on participant response using a rating scale‚ brief written impressions‚ and descriptive adjective check list. The
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ACCOUNTING FOR BUSINESS DECISION MAKING (MBSA 1413) DANSHUI CASE STUDY PREPARED FOR DR. SULAIMAN ARIS PREPARED BY MUHAMMAD ASHRAF BIN LISMAN (MBS141031) KHAIRUL IKHSAN BIN SELAMAT (MR 121159) ROHESWARAN GANEASON (MR 131107) 9TH MAY 2015 Questions: Danshui Plant No. 2 1. Using budget data‚ how many Apple iPhone 4’s would have to have been completed for Danshui Plant No. 2 to break even? Variable Costs = Material Cost + Labor Cost + Shipping Cost = 187.89+13.11+1.06 = 202.06 / Unit Fixed
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Compute the total materials variance and the price and quantity variances. Total materials variance $ ____ Materials price variance $ ____ Materials quantity variance $ ____ Repeat (a)‚ assuming the purchase price is $5.20 and the quantity purchased and used is 26‚200 units. Total materials variance $ ____ Materials price variance $ ____ Materials quantity variance $ ____ SP=$5 (given) SQ=27000 (9000@3per) AP=$4.7(given) AQ=28000 (given) Now‚ price variance is AQ(SP-AP)‚ or 28000($
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CHAPTER 8 FLEXIBLE BUDGETS‚ OVERHEAD COST VARIANCES‚ AND MANAGEMENT CONTROL 8-1 Effective planning of variable overhead costs involves: 1. Planning to undertake only those variable overhead activities that add value for customers using the product or service‚ and 2. Planning to use the drivers of costs in those activities in the most efficient way. 8-2 At the start of an accounting period‚ a larger percentage of fixed overhead costs are locked-in than is the case with variable overhead
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currently experiencing difficulties with regards to its budgeting process and variance analysis. For the fiscal year 1973‚ the Ice Cream Division has a favorable operating income variance of $71‚700. The President‚ Jim Peterson feels that the comparisons between budgeted results and actual results are not providing adequate information from which to decide whom should be commended for their ability to produce favorable variances‚ but more importantly what improvements need to be implemented‚ where they
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Chapter 6: Master Budget and Responsibility Accounting A budget is the quantitive expression of a proposed plan of action by management for a specified period Also to aid to coordinate what needs to be done to implement that plan A financial budget quantifies managers’ expectations regarding a company’s income‚ cash flows‚ and financial position Strategy specifies how an organization matches it capabilities with the opportunities in the marketplace to accomplish its objectives Stratigic plans are
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explained using Variance Analysis to demonstrate the underlying reasons why the company failed to meet its president’s expectations. FFL profit for 2010 was below budget due to many factors both production and marketing related. From a production perspective‚ there were 3 major areas of concern all of which were unfavorable with respect to Variance Analysis (As shown in Exhibit 3): 1. Direct Labor 2. Variable Overhead 3. Fixed Cost The $139‚200 unfavorable Direct Labor Variance can be attributed
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