{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-09-12T08:18:04-04:00", "answer_date": "2024-09-12 08:18:04", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "10439990", "url": "\/study-help\/questions\/alson-is-the-cost-accountant-at-a-manufacturer-of-exquisite-10439990", "question_creation_date_js": "2024-09-12T08:18:04-04:00", "question_creation_date": "Sep 12, 2024 08:18 AM", "meta_title": "[Solved] Alson is the cost accountant at a manufac | SolutionInn", "meta_description": "Answer of - Alson is the cost accountant at a manufacturer of exquisite glass serving bowls. The materials used for the bowls are | SolutionInn", "meta_keywords": "alson,cost,accountant,manufacturer,exquisite,glass,serving,bowls,materials,inexpensive,process,labour", "question_title_h1": "Alson is the cost accountant at a manufacturer of exquisite glass serving bowls. The materials used for the bowls are inexpensive, but the process is", "question_title": "Alson is the cost accountant at a manufacturer of exquisite glass serving", "question_title_for_js_snippet": "Alson is the cost accountant at a manufacturer of exquisite glass serving bowls The materials used for the bowls are inexpensive, but the process is labour intensive The supervisor decided to use cheaper labour this period to see whether costs could be reduced Alson needs to prepare a report for her supervisor about how effective operations had been during the month of January She has previously set the following standards Cost per unit Direct materials 3 5 kg $2 40 $8 4 Direct labour 5 5 hours $14 77 Factory overhead Variable $3 per direct labour hour 16 5 Fixed $25 per unit 25 00 Variable overhead is allocated by labour hours and fixed overhead is allocated by unit Estimated production per month is 8 000 units (44000 direct labour hours) with fixed overhead expenditure budgeted at $200,000 Records for January, based on production of 7 800 units , indicated the following Direct materials purchased 28 000 kg $2 8 $78,400 Direct materials used 24500 kg Direct labour 40500 hours $14 85 $601,425 Variable overhead $130,700 Fixed overhead $205,000 Required Prepare a flexible budget to enable assessment of the strategy undertaken by management 8 marks Discuss the variances and recommend whether any of them should be investigated further 5 marks Calculate the flexible budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead, labour and materials and comment on the result 7mark ", "question_description": "

Alson is the cost accountant at a manufacturer of exquisite glass serving bowls. The materials used for the bowls are inexpensive, but the process is labour intensive. The supervisor decided to use cheaper labour this period to see whether costs could be reduced. Alson needs to prepare a report for her supervisor about how effective operations had been during the month of January. She has previously set the following standards.<\/p>

<\/p>

Cost per unit <\/p> <\/td> <\/tr>

Direct materials <\/p> <\/td>

3.5 kg @ $2.40 <\/p> <\/td>

$8.4 <\/p> <\/td> <\/tr>

Direct labour <\/p> <\/td>

5.5 hours @ $14 <\/p> <\/td>

77 <\/p> <\/td> <\/tr>

Factory overhead: <\/p> <\/td> <\/tr>

Variable <\/p> <\/td>

$3 per direct labour hour <\/p> <\/td>

16.5 <\/p> <\/td> <\/tr>

Fixed <\/p> <\/td>

$25 per unit <\/p> <\/td>

25.00 <\/p> <\/td> <\/tr> <\/tbody> <\/table>

<\/p>

Variable overhead is allocated by labour hours and fixed overhead is allocated by unit. Estimated production per month is 8 000 units (44000 direct labour hours) with fixed overhead expenditure budgeted at $200,000. <\/p>

Records for January, based on production of 7 800 units<\/strong>, indicated the following:<\/p>

<\/p>

Direct materials purchased <\/p> <\/td>

28 000 kg @ $2.8 <\/p> <\/td>

$78,400 <\/p> <\/td> <\/tr>

Direct materials used <\/p> <\/td>

24500 kg <\/p> <\/td>

<\/p> <\/td> <\/tr>

Direct labour <\/p> <\/td>

40500 hours @ $14.85 <\/p> <\/td>

$601,425 <\/p> <\/td> <\/tr>

Variable overhead <\/p> <\/td>

<\/p> <\/td>

$130,700 <\/p> <\/td> <\/tr>

Fixed overhead <\/p> <\/td>

<\/p> <\/td>

$205,000 <\/p> <\/td> <\/tr> <\/tbody> <\/table>

<\/p>

Required<\/strong> <\/p>

  1. Prepare a flexible budget to enable assessment of the strategy undertaken by management. <\/li> <\/ol>

    [8 marks]<\/em> <\/p>

    <\/p>

    1. Discuss the variances and recommend whether any of them should be investigated further. <\/li> <\/ol>

      [5 marks]<\/em><\/p>

      <\/p>

      1. Calculate the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead, labour and materials and comment on the result. [7mark] <\/em> <\/li> <\/ol>

        <\/em><\/p>", "transcribed_text": "", "related_book": { "title": null, "isbn": null, "edition": null, "authors": null, "cover_image": null, "uri": null, "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-12 08:18:04", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/business-communication\/1-ask-yourself-does-the-communciation-have-a-sincere-youattitude-1997961", "description": "1. Ask yourself: Does the communciation have a sincere you-attitude?", "stars": 0 }, { "url": "\/dodge-city-realty-acts-as-an-agent-in-buying-selling-84707", "description": "Dodge City Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on July 31, 2010, is shown below. The following business transactions were...", "stars": 3 }, { "url": "\/study-help\/questions\/alson-is-the-cost-accountant-at-a-manufacturer-of-exquisite-10439990", "description": "Alson is the cost accountant at a manufacturer of exquisite glass serving bowls. The materials used for the bowls are inexpensive, but the process is labour intensive. The supervisor decided to use...", "stars": 3 }, { "url": "\/study-help\/questions\/common-stock-valuation-wine-tanding-common-stock-is-centeling-in-8896545", "description": "Common stock valuation Wine tanding common stock is centeling in the for 131 Dividende 2 per share were podlast year roumon equitys 34 percent, and thention 2 percent What is now of the stock to you...", "stars": 3 }, { "url": "\/study-help\/questions\/the-journal-bearings-are-generally-used-in-a-1056665", "description": "The journal bearings are generally used in _ _ a ) Belts b ) Columns c ) Beams d ) Supports", "stars": 3 }, { "url": "\/study-help\/questions\/use-delimeter-scanner-chopper-chopperusedelimiter-int-sum-0-new-1056877", "description": "Use Delimeter Scanner chopper chopper.useDelimiter(\"\\\\-\") int sum = 0; new Scanner(\" 1-2-3-4-55-122-o 11\"); OUTPUT 187 while(chopper.hasNextInt)) sum += chopper.nextnt(); System.out.println( sum );...", "stars": 3 }, { "url": "\/study-help\/questions\/find-the-volume-of-the-solid-whose-base-is-the-1056676", "description": "find the volume of the solid whose base is the region bounded between the curve y = x ^ 2 - x - 3", "stars": 3 }, { "url": "\/study-help\/questions\/what-is-an-interface-what-keyword-is-used-to-define-1056886", "description": "What is an interface? What keyword is used to define one?", "stars": 3 }, { "url": "\/study-help\/questions\/a-particle-moves-along-a-straight-line-with-an-acceleration-1056690", "description": "A particle moves along a straight line with an acceleration expressed by a = 8\/(v+4) If at v=0 m\/s, s = 6 m, determine the position of the particle when the velocity reaches 10 m\/s.", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/question-1-mike-wants-to-borrow-650-from-his-uncle-10439989", "next": "\/study-help\/questions\/an-example-of-an-uncontrollable-cost-would-include-all-of-10439991" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Alson is the cost accountant at a manufacturer of exquisite glass serving", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/alson-is-the-cost-accountant-at-a-manufacturer-of-exquisite-10439990" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } } }