Exam 7: Flexible Budgets, Variances, and Management Control: I

Answer the following question(s)using the information below.Apple Valley Orchards, Inc.(AVO), developed standard costs for direct material and direct labour.In 2019, AVO estimated the following standard costs for one of their most well loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples. During September 2020, AVO produced and sold 1,200 pies using 1,875 kilograms of direct materials at an average cost per kilogram of $7.00 and 280 direct labour hours at an average wage of $14.25 per hour. -September's direct labour flexible-budget variance is

Wilson's Summer Cottons manufactures shirts and other cotton clothing.A certain designed t-shirt requires the following: During the third quarter, the company made 7,500 t-shirts and used 8,250 square metres of fabric costing $11,550.Direct labour totaled 1,650 hours for $23,265.Required: a.Compute the direct materials price and efficiency variances for the quarter. b.Compute the direct manufacturing labour rate and efficiency variances for the quarter.

When a journal entry is made in a standard cost system to record the liability for direct manufacturing labour costs, the difference between the debit to the work-in-process control account and the credit to the payroll payables is

Mittrell Company produces chairs and has determined the following direct cost categories and budgeted amounts: Actual performance for the company is shown below: Required: a.What is the combined total of the flexible-budget variances? b.What is the rate variance of the direct materials? c.What is the rate variance of the direct manufacturing labour and the direct marketing labour, respectively? d.What is the efficiency variance for direct materials? e.What are the efficiency variances for direct manufacturing labour and direct marketing labour, respectively?

Use the information below to answer the following question(s).Sawyer Industries Inc.(SII), developed standard costs for direct material and direct labour.In 2019, SII estimated the following standard costs for one of their major products, the 30-litre heavy-duty plastic container. During July 2020, SII produced and sold 10,000 containers using 2,200 kilograms of direct materials at an average actual cost per kilogram of $24 and 1,050 direct manufacturing labour hours at an average actual wage of $14.75 per hour. -July's direct material efficiency variance is

Nicholas Company manufacturers TVs.Some of the company's data was misplaced.Use the following information to replace the lost data: Required: a.What are the respective flexible-budget revenues (A)? b.What are the static-budget revenues (B)? c.What are the actual variable costs (C)? d.What is the total flexible-budget variance (D)? e.What is the total sales-volume variance (E)? f.What is the total static-budget variance?

Natural Furniture Ltd.makes wooden furniture.One of their products is a wooden desk.The exterior is made of walnut, a high quality wood, but the interior drawers are made of pine, a less expensive wood.The budgeted direct material quantities and prices for one desk are: During the month of September 440 desks were produced.The actual material volume and costs were: Required: Calculate the direct materials mix and yield variances for the walnut.

Which of the following is part of the benchmarking process?

Use the information below to answer the following question(s).A company makes table lamps, for which the following standards have been developed: During January, production of 100 lamps was expected, but 110 lamps were actually completed.Direct materials purchased and used were 2,100 kilograms at an actual price of $2.20 per kilogram.Direct labour cost for the month was $5,310, and the actual pay per hour was $9.00. -The direct-labour efficiency variance for the month of January is

Use the information below to answer the following question(s).Jenny's Condiments makes a specialty mustard for street vendors that is composed of wet ingredients and dry ingredients.Two parts of wet ingredients at a standard cost of $12, and three parts of dry ingredients at a standard cost of $9, are required for every batch.In the first week of July, Jenny produced two hundred thirty batches of mustard using 450 units of wet ingredients and 750 units of dry ingredients. -What are the direct materials quantity variances for the wet and dry ingredients respectively?

A standard is usually expressed on a per-unit basis and communicates an average amount indicating what should be achieved by any similar process each time period that performance measures are taken.

Use the following data to prepare a flexible budget for possible sales/production levels of 10,000; 11,000; and, 12,000 units.Show the contribution margin at each activity level. Variable costs: Fixed costs:

A cost of a given activity decreases over continuous time periods.This is considered to be a continuous improvement variable cost.

The following data for the Telephone Company pertain to the production of 450 rolls of telephone wire during June.Selected items are omitted because the costing records were lost in a windstorm. Required: Compute the missing elements in the report represented by the lettered items.

Management by exception is the practice of concentrating on

Use the information below to answer the following question(s).Robb Industries Inc.(RII), developed standard costs for direct material and direct labour.In 2019, RII estimated the following standard costs for one of their major products, the 10-litre plastic container. During June 2020, RII produced and sold 5,000 containers using 490 kilograms of direct materials at an average actual cost per kilogram of $32 and 250 direct manufacturing labour-hours at an average actual wage of $15.25 per hour. -June's direct manufacturing labour rate variance is

Determining the actual quantity of the revenue driver is one step in the development of a flexible budget.

Rate variances are the difference between actual inputs used and budgeted inputs that should have been used, multiplied by the budgeted price.

Use the information below to answer the following question(s).Sawyer Industries Inc.(SII), developed standard costs for direct material and direct labour.In 2019, SII estimated the following standard costs for one of their major products, the 30-litre heavy-duty plastic container. During July 2020, SII produced and sold 10,000 containers using 2,200 kilograms of direct materials at an average actual cost per kilogram of $24 and 1,050 direct manufacturing labour hours at an average actual wage of $14.75 per hour. -July's direct manufacturing labour efficiency variance is

Use the information below to answer the following question(s).Sawyer Industries Inc.(SII), developed standard costs for direct material and direct labour.In 2019, SII estimated the following standard costs for one of their major products, the 30-litre heavy-duty plastic container. During July 2020, SII produced and sold 10,000 containers using 2,200 kilograms of direct materials at an average actual cost per kilogram of $24 and 1,050 direct manufacturing labour hours at an average actual wage of $14.75 per hour. -July's direct manufacturing labour rate variance is