1292018 32 MyAccountingLab Homework Chapters 22 and 23Syed J

1/29/2018 3-2 MyAccountingLab Homework: Chapters 22 and 23-Syed Jaffry Instructor: Abigail Feloney, Kelly Flannagan O\'Sullivan Course: ACC-202-T3852 Managerial Accounting 18EW3 Student: Syed Jaffry Date: 01/28/18 Assignment: 3-2 MyAccountingLab Homework: Chapters 22 and 23 3. Stenback Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system Stenback allocates overhead based on yards of direct materials. The company\'s performance report includes the following selected data (Click the icon to view the selected data.) Read the requirements Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) Stenback Recliners Flexible Budget Budget Amounts per Unit Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs Direct Materials Direct Labor Variable Overhead Fixed Manufacturing Costs Fixed Overhead Total Cost of Goods Sold Gross Profit Requirement 2. Compute the cost variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhead, compute the variable overhead cost, variable overhead efficiency, fixed overhead cost, and fixed overhead volume variances. Round to the nearest dollar Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor and identify whether each variance is favorable (F) or unfavorable (U). Round your answers to the nearest whole dollar Abbreviations used: AC actual cost; AQ-actual quantity; FOH = fixed overhead; SC standard cost; SQ standard quantity.) Formula Variance Direct materials cost variance = Direct labor cost variance Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead; SC = standard cost SQ = standard quantity.) https:ixlitemprod.pearsoncmg.com/apiv1/printlaccounting 1/5

Solution

1.direct cost variance= (AC - SC)AQ

2. FAVOURABLE(F)

3. Direct labour cost variance = (AC - SC) AH

4. ADVERSE(A)

5. Direct efficiency variance = (AQ - SQ)SC

6.ADVERSE

7. Direct labour efficiency variance = (AQ - SQ) SC

8. F

9. VO COST VARIANCE = ( Actual voh - (SC*AQ)

10. A

11. VO EFF VARIANCE = ( AQ - SQ) SC

12. A

13.FOH COST VAR = SC - AC

15. VOLUME VARIANCE= AFH - BUD FO

16. F

17. GOOD

18. FAVOURABLE

19. UNFAVOURABLE

20. POOR

21. SOME

22. FAVOURABLE

23. IDENTIFY PERFORMANCE STANDARD

24. DECREASE ACCOUNTING CPST

25.SET TARGET LEVELS OF PERFORMANCE AND FLEXIBLE BUDGET.