The Clarkson Company produces engine parts for car manufacturers. A new accountant intern at Clarkson has accidentally

Question:

The Clarkson Company produces engine parts for car manufacturers. A new accountant intern at Clarkson has accidentally deleted the calculations on the company's variance analysis calculations for the year ended December 31, 2015. The following table is what remains of the data.

The Clarkson Company produces engine parts for car manufacturers. A

Required
1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.)
2. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit?
3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here?

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Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0133138443

7th Canadian Edition

Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham

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