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Question;161. Miller;has the following information pertaining to its usage of direct labor in a;recent period;Required;Given the above, determine the company's;(A);Direct labor efficiency;variance for the period.;(B);Direct labor rate;variance for the period.;(C);Summary journal entry to;record accrued labor costs and associated standard cost variances for the;period.;162.Sarheen, Inc.;maintains no inventories and has collected the following data on one of its;products for the most recent period;Required;Determine;(A);The direct material;usage (quantity) variance.;(B);The actual cost of the;direct materials purchased and used during the period. (Hint: these two amounts;are identical.);(C);The direct material;price variance.;(D) The;correct summary journal entry to record direct material costs for this period's;production, including associated standard cost variances. (Note: assume that;any price variances are recorded at point of production.);163.;McElroy Company has;prepared the following master budget for 2010. Although McElroy has the;capacity to manufacture 50,000 units, management expected the likely demand for;its product to be 40,000 units in 2010, as such, it prepared the master budget;to manufacture and sell 40,000 units. In early January 2011, the company was;pleasantly surprised to find out that it manufactured and sold 45,000 units in;2010.;Required;Prepare the flexible budget (FB) for the actual operating level achieved in;2010.;164. Balt;Company maintains a standard cost system, as such, all inventories, including;materials, are carried on the books at standard cost. Last period, Balt used;5,000 pounds of Material H to produce 800 units of Product C8. The company has;established a standard of 7 pounds of Material H per unit of C8, at a price of;$7.50 per pound of material. During the period the inventory for Material H;decreased by 2,000 pounds. The company spent $25,000 during the period to;purchase material H.;Required;(1) Calculate the direct materials purchase-price variance for the period. (2);Calculate the direct materials usage variance forthe period. (3);Provide the correct summary journal entry to record the purchase, on credit, of;materials during the period.(4) Provide the correct summary journal to record;direct materials cost for materials issued to production during the period.;165. Falcon;Company uses a standard cost system, as such, all inventories are carried on;the books at standard cost. During the most recent period the company;manufactured 12,000 units. The standard cost sheet indicates that the standard;direct labor cost per unit is $1.50. The performance report for the period;includes an unfavorable direct labor rate variance of $1,000 and a favorable;direct labor efficiency variance of $275.;Required;What was the total actual cost of direct labor incurred during the period?;166.;Balmer;Corporation's master budget for the year is presented below;During the;period, the company actually manufactured and sold 42,000 units.;Required;(1);Prepare a flexible;budget (FB) for the actual output level achieved during the period.;(2) What;is the definition of a FB? For what managerial purpose is a FB useful? Be;specific about the types of information (and variances) that management can;generate, at the end of an accounting period, given a flexible budget and its;master (static) budget.;167.;Patterson, Inc. wishes;to evaluate, in summary fashion, its financial performance for the most recent;period. The budget and the actual operating results for this period are;presented below.;Required: (A) What was;the actual operating income for the period?;(B) What is the firm's;master budget operating income?;(C) What was the;flexible-budget operating income for the period?;(D) What is the total;operating-income variance of the period?;(E) What was the;sales-volume variance, in terms of operating income, for the period?;(F) What are the key;elements of the traditional financial control model?;(G) What are the primary;limitations of the traditional financial control model?;168. Contemporary;furniture manufactures office desks. The firm budgeted to sell 5,000 desks at;$200 per desk in 2010. Budgeted costs include $80 variable cost per desk, and;$200,000 fixed cost/year. In 2010 the company sold 6,000 desks at $190, and;incurred $78 variable cost per desk and $220,000 fixed cost for the year.;Required;Prepare, in proper form, a variance analysis report identifying both flexible;budget and sales-volume variances.;169.;Fill in the;unknowns A through S below.;170.;James has the;following information pertaining to its usage of direct labor in a recent;period;Required: (A);Calculate the labor efficiency variance for the period.;(B);Calculate the labor rate;variance for the period.;(C);Prepare, in proper form;the journal entry to record wage expense for the period, including any;associated standard cost variances.;171. Appliance;Inc. manufactured 10,000 units. The standard cost sheet indicates that the;standard direct labor cost per unit is $3.00. The performance report for the;period includes a favorable direct labor rate variance of $2,000, and a;favorable direct labor efficiency variance of $500.;Required;What was the total actual cost of direct labor incurred during the period?;172. The;Chen Company uses a standard cost system. As such, all of its inventories are;carried on the books at standard, not actual, cost. During the most recent;accounting period, the company had the following summary transactions;(A);Purchased, on credit;direct materials, the standard cost of these materials was $30,000, while the;actual cost was $32,000.;(B);Issued to production;direct materials. The standard cost of materials that should have been used for;this period's output was $35,000, while the standard cost of materials actually;used in production during the period was $33,000.;(C);Actual direct labor;cost, which has been incurred but not yet paid, for the period was $75,000. The;standard direct labor cost for this period's output was $80,000. The direct;labor efficiency variance for the period was $10,000(F).;(D);For the units completed;during the period, the standard direct labor cost was $78,000, while the;standard direct materials cost was;$34,000.;(E) For;the units sold during the period, the standard materials cost was;$30,000, while the standard direct labor cost was $76,000 Required;Given the above information, provide the correct journal entries for the;following;(A);Purchase of direct;materials;(B);Issuance of materials to;production.;(C);Direct labor cost for;the period.;(D);The labor and materials;cost associated with finished production this period.;(E);The labor and materials;cost associated with items sold during the period.;173.;Define what is meant by;the term "just in time production" (JIT). As indicated in your text;management accountants can supply relevant information to management as it;considers a move to JIT. In this regard, describe some of the principal advantages;of using a JIT system, and then describe some of the incremental costs that;would likely be associated with a move to such a system.;174. Chapter;14 argues that a comprehensive management accounting and control system would;include nonfinancial as well as financial performance indicators. Two such;nonfinancial performance indicators were discussed in conjunction with;organizations that adopt a just-in-time (JIT) production philosophy;customer-response time (CRT) and process cycle efficiency (PCE). Explain each;of these two performance indicators.;175. Explain;the calculation and interpretation of a sales price variance for any given period.;How does this variance relate to the total flexible-budget variance for the;period?;176.Subscript;a" = actual, subscript "s" = standard, Q = quantity of;direct materials issued to production, P = price paid for unit of direct;materials.;Required;Use the above notation to develop a formula for each of the following standard;cost variances: (A) Direct materials pricevariance (calculated at point;of production, not point of purchase).;(B);Direct materials usage;variance.;(C);Flexible-budget (FB) variance for direct;materials.;(D);Joint price-quantity;variance for direct materials.;Chapter;14 introduces you to the concept of operational control systems. Within the;context of this discussion, certain limitations of financial control systems;were presented. Provide a summary of the primary limitations of short-term;financial performance indicators, such as the variances discussed in the main;part of the chapter

 

Paper#44932 | Written in 18-Jul-2015

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