www.eduwithsugeeth.com Lesson Mock 04: Specimen Answer Standard Costing 01. (a) The average variable cost per unit falls as volume increases from 5‚000 to 15‚000 units and then increases as volume increases to 30‚000 units. The average material costs may initially fall because of economies of scale due to bulk discounts‚ but then may rise if there is scarcity of supply‚ requiring a premium to be paid. The product-specific fixed costs are constant until the volume increases from 10‚000 to
Premium Cost Costs Variable cost
Introduction Danshui Plant No.2 is a contract manufacturer locating in southern China and was assembles electronic products for companies wishing to save labor costs and they are using semiskilled labor for less than 1 dollar an hour. In August 2010‚ Danshui Plant No.2 in southern China has a 1 year contract in the period between 1 June 2010 and 31 May 2011 with Apple incorporation to assemble the Apple iPhone 4. Based on the contract‚ Danshui need to assemble 2.4 million iPhones within 1 year.
Premium Costs Variable cost Cost
cost system in a simple setting. It shows how such a system works‚ including the development of variances‚ and ties cost accounting to the accounting cycle the student learned in Part 1 of the book. (Brisson’s system is the same as the one depicted in Illustration 19-2.) This seems to be a valuable exercise‚ especially in helping to minimize the omnipresent problems students have with production cost variance analysis in the next chapter. If not assigned for class‚ this makes a good exam case. (For ease
Premium Accounts receivable Balance sheet Revenue
uses standards for cost and revenue for the purpose of control through variance analysis. We can say standard costing is a technique of costing‚ which also established control over costing. Standard cost can be defined “As a pre-determined cost which is calculated from management’s standard of efficient operation and relevant necessary expenditure. It may be used as a basis for price fixing and for control through variance analysis.” Hence we can say standard costs are pre-determined estimates
Premium Cost accounting Cost Variance
3.0 Variance Analysis 3.1 Flexible-Budget Variance Analysis In Barnes Scuba Diving case‚ the main comparison for the flexible-budget variance analysis would be between the actual results and flexible budget. Static budget would not be useful for this comparison due to the different sales unit output which may result in a misleading and inaccurate result comparison. With reference to the Flexible Budget Section attached in Annex X‚ Flexible-Budget Variance for Revenues was identified to be a favourable
Premium Variable cost Costs Cost
work 780 direct labour-hours each month and produce 2600 robes. The standard costs associated with this level of production are as follows: | | Total | Per Unit of Product | Direct materials | $ | 53248 | $ 20.48 | Direct labour | $ | 8320 | 3.20 | Variable manufacturing overhead (based on direct labour-hours) | $ | 3120 | 1.20 | | | | | | | | $ 24.88 | | | | | | During April‚ the factory worked only 760 direct labour-hours
Premium Cost Variable cost Costs
ACCOUNTING 569 MIDTERM 1 FALL 1995 NAME ______________________ ID # I. 15 Points 1. Otis Corp. has the following data: Selling price $50/unit Variable manufacturing costs $20/unit Fixed costs: Manufacturing $100‚000 Selling and admin. $ 50‚000 a.(3 points) The breakeven point is: b.(3 points) Given a volume of 15‚000 units‚ operating leverage is: c.(4 points)
Premium Variable cost Costs Cost
QUESTION 1 In developing an annual budget accompanies may choose to adopt either top down budgeting approach or bottom up budgeting approach. In the finance ministry bottom down budgeting was a traditional way used in budget formulation. Top down budgeting came in the 1990s as a motivation to curb the fiscal deficits in which it lead to fiscal crisis in other countries. Top down budgeting was found that it helps and manages well the fiscal deficit efficiently unlike bottom up budgeting approach.
Premium Direct material price variance Direct material price variance Direct material usage variance
for the year ended June 30‚ 1998 presented the actual values generated together with the master (static) budget and master budget variances for the period. The company obtained higher Total Revenue than their budget but it turned out to an Operating Loss near a million dollars. This paper aims to study the budgets from actual results‚ and to compute the budget variances and to analyze its causes. After that‚ the company performance will be evaluated to recommend alternative solutions for improvement
Premium Direct material price variance
notes in detail on “activity based costing”. 7 OR 2 Modern Manufacturers Ltd. have three production 7 departments P1‚ P2 and P3 and two service departments S1 and S2‚ the details pertaining to which are as under : Particulars P1 P2 P3 S1 S2 Direct wages (Rs.) 3‚000 2‚000 3‚000 1‚500 195 Working hours 3‚070 4‚475 2‚419 — — Value of machines (Rs.) 60‚000 80‚000 1‚00‚000 5‚000 5‚000 Horse-power of machines 60 30 50 10 — Light points 10 15 20 10 5 Floor space (sq. feet) 2‚000 2‚500 3‚000
Premium Direct material price variance Price