Question
Variances Budget Actual Units produced $20,000 22,000 Materials (kg) 80,000 96,000 Direct Labour (Hours) 290,000 343,000 Material Costs 800,000 ? Direct Labour Costs 3,850,000 4,557,800
Variances
| Budget | Actual | |
| Units produced | $20,000 | 22,000 |
| Materials (kg) | 80,000 | 96,000 |
| Direct Labour (Hours) | 290,000 | 343,000 |
| Material Costs | 800,000 | ? |
| Direct Labour Costs | 3,850,000 | 4,557,800 |
| Variable Overhead Costs | 3,500,000 | 4,400,000 |
| Fixed Overhead Costs | 1,600,000 | 1,610,000 |
Other Information
Overhead is Allocated on Direct Labour Hours
During the year 99,000 kg of materials were purchased for $800,000
Beginning Inventory: none
Ending Inventory: 3,000 kg
Required:
Prepare a flexible budget
Calculate the following variances
- Material Rate
- Material Efficiency
- Labour Price
- Labour Efficiency
- Variable Overhead Rate
- Variable Overhead Efficiency
- Fixed Overhead Rate
- Fixed Overhead Production Volume
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Computer Auditing Security And Internal Control Manual
Authors: Javier F. Kuong
1st Edition
0131629670, 978-0131629677
