Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Just need help finding the different variances such as Total Variance, Total Flexible Budget Variance, Total Sales Volume Variance, Direct Labor Flexible Budget Variance, Direct

image text in transcribed

Just need help finding the different variances such as Total Variance, Total Flexible Budget Variance, Total Sales Volume Variance, Direct Labor Flexible Budget Variance, Direct Labor Price Variance, Direct Labor Efficiency Variance, Direct Material (milk) Flexible Budget Variance, Direct Material Price Variance, and the Direct Material Quantity Variance.

if not all just some thanks!

Use the following budget inputs for your report: Output in terms of gallons of Butter (4,000 gallons), Standard amount of milk in gallons per pound of butter ( 2 gallons Milk per gallon of butter), Standard price per gallon of milk ( $9.00 per gallon), standard labor hours per gallon of butter ( 3.0 hours per gallon), standard rate per hour of labor ($15.00 per hour). The third sheet should contain a second table where actual financial and production information can be inputted as follows: Gallons of Butter produced (3,500 gallons of butter), gallons of milk purchased (6,500 gallons of Milk), actual cost of milk purchases ( $9.40 per gallon), Total Labor Hours used (11,100 hours of Direct Labor), Total Direct Labor Cost for the month ($158,175) The "Case": Your good friend Aurelia has a small business that makes high-quality hand-made butter. She has developed standard costs for the production process. For every gallon of butter produced they need to use 2 gallons of fresh milk that is estimated to cost $9.00 per gallon. It is supposed to take an expert butter maker 3 hours at a cost of $15.00 per hour to make a gallon of butter too. Her standard cost is therefore $63.00 per gallon for the butter produced. Aurelia is looking at some information from last month. They managed to produce (complete) 3,500 gallons of butter. They had expected to make 4,000 gallons of butter. She can also see that she paid for 11,100 hours of labor for a total labor cost of $158,175. Aurelia also noted that she purchased 6,500 gallons of milk at a cost of $9.40 per gallon. There are no inventories left at the end of the month. You are working with Aurelia's company as a financial intern. Unfortunately, Aurelia's Accountant is away for 2-weeks at a Ballroom Dancing competition so the month-end financial statements will not be completed until she returns. So, Aurelia has asked you in the interim to look at the production costs to make sure her costs are under control. Specifically, she wants to know what the total budget variance is and as much of a break-down into more specific variances as you are able. Aurelia is not an accounting major, so she appreciates clear explanations of any numbers you produce. Lay out your answers clearly as the/her Accountant will want to review your numbers too when she returns to make sure you did not miss out any "steps." Use the following budget inputs for your report: Output in terms of gallons of Butter (4,000 gallons), Standard amount of milk in gallons per pound of butter ( 2 gallons Milk per gallon of butter), Standard price per gallon of milk ( $9.00 per gallon), standard labor hours per gallon of butter ( 3.0 hours per gallon), standard rate per hour of labor ($15.00 per hour). The third sheet should contain a second table where actual financial and production information can be inputted as follows: Gallons of Butter produced (3,500 gallons of butter), gallons of milk purchased (6,500 gallons of Milk), actual cost of milk purchases ( $9.40 per gallon), Total Labor Hours used (11,100 hours of Direct Labor), Total Direct Labor Cost for the month ($158,175) The "Case": Your good friend Aurelia has a small business that makes high-quality hand-made butter. She has developed standard costs for the production process. For every gallon of butter produced they need to use 2 gallons of fresh milk that is estimated to cost $9.00 per gallon. It is supposed to take an expert butter maker 3 hours at a cost of $15.00 per hour to make a gallon of butter too. Her standard cost is therefore $63.00 per gallon for the butter produced. Aurelia is looking at some information from last month. They managed to produce (complete) 3,500 gallons of butter. They had expected to make 4,000 gallons of butter. She can also see that she paid for 11,100 hours of labor for a total labor cost of $158,175. Aurelia also noted that she purchased 6,500 gallons of milk at a cost of $9.40 per gallon. There are no inventories left at the end of the month. You are working with Aurelia's company as a financial intern. Unfortunately, Aurelia's Accountant is away for 2-weeks at a Ballroom Dancing competition so the month-end financial statements will not be completed until she returns. So, Aurelia has asked you in the interim to look at the production costs to make sure her costs are under control. Specifically, she wants to know what the total budget variance is and as much of a break-down into more specific variances as you are able. Aurelia is not an accounting major, so she appreciates clear explanations of any numbers you produce. Lay out your answers clearly as the/her Accountant will want to review your numbers too when she returns to make sure you did not miss out any "steps

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

Information Technology Audit Handbook

Authors: Doug Dayton

1st Edition

0136143148, 978-0136143147

More Books

Students also viewed these Accounting questions

Question

sharing of non-material benefits such as time and affection;

Answered: 1 week ago