Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need solution for the question 8 - 3 9 to 8 - 4 0 ana production - volume variance. line Activity - based costing,

I need solution for the question 8-39 to 8-40 ana production-volume variance.
line Activity-based costing, variance analysis. Precision Surgical Instruments, Ltd. makes a specisith
testing purposes. Quality atches. Precision randomly selects forceps from each SFA batch for q quadid
quality-testing hours. The following information is for 2017 :
results.
pute the eficiency and spending variances. Comment
Comment on the results. 8-41 Comprehensive review, working backward from given variances. Maruti company uses a
budget and standard costs to aid planning and control of its machining manufacturing operation dief
normal-costing system for manufacturing has two direct-cost categories (direct materials and dif ded
manufacturing labor-both variable) and two indirect-cost categories (variable manufacturing overies
and fixed manufacturing overhead, both allocated using direct manufacturing labor-hours).
At the 40,000 budgeted direct manufacturing labor-hour level for August, budgeted di
facturing labor is 40,00,000, budgeted variable manufacturing overhead is 24,00,000, and
geted fixed manufacturing overhead is 32,00,000.
The following actual results for August are:
Direct materials price variance (based on purchases)
Direct materials efficiency variance
Direct manufacturing labor costs incurred
Variable manufacturing overhead flexible-budget variance
Variable manufacturing overhead efficiency variance
Fixed manufacturing overhead incurred
Fixed manufacturing overhead spending variance
The standard cost per kg of direct materials is 57.5. The standard allowance is
materials for each unit of product. During August 30,000 units of product were prod
no beginning inventory of direct materials. There was no beginning or ending work in pro
August, the direct materials price variance was 5.5 per kg.from Horngren cost accounting, the question is attached.8-39 Overhead analysis. Hyundai Motors uses standard costing. The following information is for 2017:
Static-budget machine-hours
Fixed overhead budget costs
Fixed overhead actual costs
Variable overhead actual costs
Variable overhead rate per machine-hour
Actual machine-hours used
Budgeted machine-hours allowed for actual output
Calculate variable overhead spending variance and efficiency variance.
Compute fixed overhead spending variance and production-volume variance.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A History Of Accountancy In The United States

Authors: Gary John Previts, Barbara Dubis Merino

98th Edition

0814207286, 978-0814207284

More Books

Students also viewed these Accounting questions