Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 9, Problem 3CMA
To determine
Compute the direct materials price variance.
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Sunshine Goods Ltd is a revenue maximizing firm that engages in the analysis of variances to provide useful information to management. The company manufactures and sells three (3) products, RG, KC and MG. During July 2019 the following budgeted and actual results were presented to you the management accountant for analysis:
Budgeted Results
Product
Total Sales $
Volume/units
Price $
Contribution margin per unit $
Total contribution margin $
RG
585,000
900
650
820
738,000
KC
500,000
500
1,000
850
425,000
MG
300,000
600
500
720
432,000
Total
2,000
1,595,000
Actual Results
Product
Total Sales $
Volume/units
Price $
Contribution margin per unit $
Total contribution margin $
RG
500,000
500
1,000
800
400,000
KC
270,000
300
900
`900
270,000
MG
105,000
350
300
700
245,000
Total
1,150
915,000
Required:
Sales margin quantity…
Faulks Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the
following fixed and variable cost estimates that it uses for budgeting purposes.
Fixed Element
Variable Element per
per Month
Container Refurbished
Revenue
$5,400
Employee salaries and wages
$46,300
$1,200
Refurbishing materials
$ 700
other expenses
$32,400
When the company prepared its planning budget at the beginning of August, it assumed that 23 containers would have been refurbished. However, 26 containers were
actually refurbished during August.
The amount shown for total expenses in the planning budget for August would have been closest to:
Multiple Choice
$128,100
$122,400
$11,904
$126,500
Sunshine Goods Ltd is a revenue maximizing firm that engages in the analysis of variances to provide useful information to management. The company manufactures and sells three (3) products, RG, KC and MG. During July 2019 the following budgeted and actual results were presented to you the management accountant for analysis:
Budgeted Results
Product
Total Sales $
Volume/units
Price $
Contribution margin per unit $
Total contribution margin $
RG
585,000
900
650
820
738,000
KC
500,000
500
1,000
850
425,000
MG
300,000
600
500
720
432,000
Total
2,000
1,595,000
Actual Results
Product
Total Sales $
Volume/units
Price $
Contribution margin per unit $
Total contribution margin $
RG
500,000
500
1,000
800
400,000
KC
270,000
300
900
`900
270,000
MG
105,000
350
300
700
245,000
Total
1,150
915,000
Required:
Sales margin price…
Chapter 9 Solutions
Managerial Accounting
Ch. 9 - What are the basic objectives in the use of...Ch. 9 - What is meant by reporting by the principle of...Ch. 9 - What are the two variances between the actual cost...Ch. 9 - The materials cost variance report for Nickols...Ch. 9 - A. What are the two variances between the actual...Ch. 9 - Prob. 6DQCh. 9 - Would the use of standards be appropriate in a...Ch. 9 - A. Describe the two variances between the actual...Ch. 9 - At the end of the period, the factory overhead...Ch. 9 - If variances are recorded in the accounts at the...
Ch. 9 - Direct materials variances Bellingham Company...Ch. 9 - Direct labor variances Bellingham Company produces...Ch. 9 - Factory overhead controllable variance Bellingham...Ch. 9 - Factory overhead volume variance Bellingham...Ch. 9 - Standard cost journal entries Bellingham Company...Ch. 9 - Prob. 6BECh. 9 - Crazy Delicious Inc. produces chocolate bars. The...Ch. 9 - Prob. 2ECh. 9 - Salisbury Bottle Company manufactures plastic...Ch. 9 - The following data relate to the direct materials...Ch. 9 - De Soto Inc. produces tablet computers. The...Ch. 9 - Standard direct materials cost per unit from...Ch. 9 - H.J. Heinz Company uses standards to control its...Ch. 9 - Direct labor variances The following data relate...Ch. 9 - Glacier Bicycle Company manufactures commuter...Ch. 9 - Ada Clothes Company produced 40,000 units during...Ch. 9 - Prob. 11ECh. 9 - Direct materials and direct labor variances At the...Ch. 9 - Flexible overhead budget Leno Manufacturing...Ch. 9 - Prob. 14ECh. 9 - Factory overhead cost variances The following data...Ch. 9 - Thomas Textiles Corporation began November with a...Ch. 9 - Prob. 17ECh. 9 - Factory overhead cost variance report Tannin...Ch. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Income statement indicating standard cost...Ch. 9 - Prob. 22ECh. 9 - Prob. 23ECh. 9 - Rosenberry Company computed the following revenue...Ch. 9 - Lowell Manufacturing Inc. has a normal selling...Ch. 9 - Shasta Fixture Company manufactures faucets in a...Ch. 9 - Flexible budgeting and variance analysis I Love My...Ch. 9 - Direct materials, direct labor, and factory...Ch. 9 - Factory overhead cost variance report Tiger...Ch. 9 - CodeHead Software Inc. does software development....Ch. 9 - Direct materials and direct labor variance...Ch. 9 - Flexible budgeting and variance analysis Im Really...Ch. 9 - Direct materials, direct labor, and factory...Ch. 9 - Factory overhead cost variance report Feeling...Ch. 9 - Prob. 5PBCh. 9 - Prob. 1COMPCh. 9 - Advent Software uses standards to manage the cost...Ch. 9 - Prob. 2MADCh. 9 - Prob. 3MADCh. 9 - Prob. 4MADCh. 9 - Ethics in action Dash Riprock is a cost analyst...Ch. 9 - Variance interpretation Vanadium Audio Inc. is a...Ch. 9 - MinnOil performs oil changes and other minor...Ch. 9 - Marten Company has a cost-benefit policy to...Ch. 9 - Prob. 3CMACh. 9 - JoyT Company manufactures Maxi Dolls for sale in...
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY