Comment on the following statement made by a plant manager: “Meetings with my plant accountant are frustrating. All he wants to do is pin the blame on someone for the many variances he reports.”
Q: An unfavorable fixed overhead volume variance can be due to all of the following except a.employee…
A: The correct answer is option b. increase in utility costs.
Q: Which of the following would produce a materials price variance? Select one: a. An excess number…
A: Variance analysis is the one that shows the disparity between the actual costs incurred and the cost…
Q: In gross profit analysis, if the cost variance is zero, such variance indicates that a.…
A: Gross profit analysis is used to find the reasons for difference between the Gross profit margin for…
Q: In a manufacturing environment, like the GM truck plant in Flint, who has primary responsibility for…
A: Sales Volume Variance is the difference between actual units and budgeted units sold which is…
Q: Mention some important factors that must be born in your mind while interpreting variances.
A: Variance analysis is defined as the quantitative investigation, which is also a difference between…
Q: If there is an unfavorable direct material usage variance due to the substandard quality of the raw…
A: Solution: If there is an unfavorable direct material usage variance due to the substandard quality…
Q: Our production department has been showing a high amount of raw material waste this last period. Our…
A: In accounting material yield variance refers to the difference between actual amount of material…
Q: Examine the main reasons why manufacturing companies are more sensitive to material price variances,…
A: (a) The main reasons why manufacturing companies are more sensitive to material price variances, as…
Q: Alex Company has a large underapplied overhead balance in the manufacturing overhead account. This…
A: Overhead Cost Overhead cost includes all the indirect expenses incurred by an organization for…
Q: Which one of the following would not explain an adverse direct labor efficiency variance? Group of…
A: Lets understand some basic of direct labor efficiency variance. Direct labor efficiency variance is…
Q: Samsung monitors its overhead. In an analysis of overhead cost variances, what is the controllable…
A: Controllable Variance: Controllable Variance is used for the factory overhead variances.…
Q: Top management notices a variation from budget and an investigation of the difference reveals that…
A: Controllable budget and Investigation variation: The "rate" part of a variation is referred to as a…
Q: How does persistent favorable variances in an employees cost performance create a management…
A: Favorable Variance: When the actual costs are lower than the standard, (or when the actual revenue…
Q: Lynx Corp. manufactures windows and doors. Lynx has been using a standard cost system that bases…
A: 1. List the types of variances that are recommended to company L. Company L should calculate…
Q: What would be the most likely cause of an unfavorable pay rate variance together with a favorable…
A: when we talk in context of the counting the variance implements the difference between the busted…
Q: Calculate the fixed factory overhead volume variance and state why it is favorable or unfavorable.…
A: Fixed factory overhead volume variance = Applied Fixed Overhead – Budgeted Fixed Overhead Applied…
Q: Required: 1. On the basis of the information contained in the performance report, should Santa Rosa…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: a. Analyze the factory overhead variance of Golden Manufacturers Inc., based on the given data.
A: Factory Overhead means all indirect costs related to factory or production of goods. Factory…
Q: 1. If demand is insufficient to keep everyone busy and workers are not laid off, which of the…
A: Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: *Rooney uses flexible budgets for performance evaluation. Required a. Prepare a responsibility…
A: The responsibility performance report is the budget which shows the comparison between the budgeted…
Q: Lynx Corp. manufactures windows and doors. Lynx has been using a standard cost system that bases…
A: 1. L should calculate efficiency variances and cost variances for every kind of direct material…
Q: Which of the following would explain an unfavorable variable overhead efficiency variance? (1)…
A: Unfavorable Variable overhead efficiency variance refers to a situation when Actual labor hour>…
Q: Q.Explain in details with example:- Control and Cost Reduction are the two important factors by…
A: To earn a profit is the main goal of every business.
Q: Which of the following statements might cause a labor rate variance? Group of choices: Hiring of…
A: Labor rate variance is a deviation between actual rates paid to labourers and standard rates. In…
Q: Please confirm the correct answer among the bold-fond choices. Assume that Cabanarama develops the…
A: Variance analysis: It is the theory of deviations between actual results and planned behaviour in…
Q: Away, as discussed in the chapter opener, uses a costing system with standard costs for direct…
A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…
Q: Which of the following statements is incorrect with regards to production variances? Select…
A: Production variance refers to form of measure which is used to compute the cost of production of…
Q: Which of the following is a possible cause of an unfavorable material quantity variance? A) paying…
A: Variance refers to a change between the expected value and the actual result. This term is usually…
Q: which of the following is a possible cause of an unfavorable labor efficiency variance? A. hiring…
A: The difference between the Standard labour Cost for actual hours worked and actual wages paid is…
Q: Why is the identification of favorable and unfavorable variances so important to a company? How can…
A: Introduction: Every business creates Standard Costs for a range of goods and services. It uses these…
Q: The budgeted variable selling, and administrative expense is calculated by multiplying the budgeted…
A: Answer: False, The budgeted selling Variable expense is computed on the Budgeted sale units but the…
Q: Standard Costing and Variance Analysis Standard cost systems set budgets for the materials, labor,…
A: Standard costing is a costing strategy for establishing performance standards that allow firms to…
Q: If a purchasing manager is able to buy direct materials required in the manufacturing of a product…
A: Total direct material variance: Total direct material variance is the result of difference between…
Q: Which of the following statements are true? a. The standard price of materials should include…
A: Solution: a. True, standard price of materials should include delivery charges and any discount b.…
Q: Which of the following would produce a labor rate variance? A. Poor quality materials causing…
A: The correct option is B.
Q: Which of the following statements is true of performance reporting? A. Responsibility reports…
A: Performance reporting refers to a process of reporting the performance of any particular thing. It…
Q: A company product has used more material to produce than the standard amount but takes fewer labor…
A: The correct option with proper explanation are as follows
Q: When variances have been determined, management should, decide whether each variance is sufficiently…
A: Variance analysis is usually undertaken by manufacturing organizations that involve direct…
Q: As long as the total actual factory overhead cost is not significantly different from the total…
A: Solution: I do not agree with this statement that "As long as the total actual factory overhead cost…
Q: Which one of the following may account for an adverse labour efficiency variance? O a. Using higher…
A: Labor Efficiency is the productivity of the labor employed and measures whether the labor is able to…
Q: A business is reporting on materials cost variances for the month. The report indicates a large…
A: Material Price Variance Material Price variance is defined as the difference between Actual price…
Q: Bill Wilson, the financial accountant at Robson Ltd is considering implementing a standard costing…
A: Standard Costing - It is the process of estimation of expenses of the production process. It is cost…
Comment on the following statement made by a plant manager: “Meetings with my plant accountant are frustrating. All he wants to do is pin the blame on someone for the many variances he reports.”
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- What internal control or procedure(s) would provide protection against the following threats? A factory supervisor wrote off a robotic assembly machine as being sold for salvage but actually sold the machine and pocketed the proceeds. A factory supervisor accessed the production planning file and inflated the standards for work completed in his department. Consequently, future performance reports show favorable budget variances for that department. Overproduction of a slow-moving product resulted in excessive inventory that had to eventually be marked down and sold at a lossWhat internal control or procedure(s) would provide protection against the following threats? A factory supervisor wrote off a robotic assembly machine as being sold for salvage but actually sold the machine and pocketed the proceeds. A factory supervisor accessed the production planning file and inflated the standards for work completed in his department. Consequently, future performance reports show favorable budget variances for that department. Overproduction of a slow-moving product resulted in excessive inventory that had to eventually be marked down and sold at a loss Storeroom issues materials to production once the production is started. A production employee stole items of work-in-process inventoryThe head of the accounting department is not satisfied with the implementation of the new system. He believes that the new system will result in job losses for many of the bookkeepers. They are threatening industrial action. In your role as project sponsor, what should you do to resolve the situation?
- All of the following are problems with traditional accounting information EXCEPT: a. Managers in a JIT setting require immediate information. b. The measurement principle tends to ignore standards other than money. c. Variance analysis may yield insignificant values. d. The overhead component in a manufacturing company is usually very large. e. All of these are problems associated with traditional accounting information.The Carla Vista Burkett Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using a system of responsibility reports and return on investment calculations. The allocation of resources within the company and the segment managers' bonuses are based in part on the results shown in these reports. Recently, the company was the victim of a computer virus that deleted portions of the company's accounting records. This was discovered when the current period's responsibility reports were being prepared. The actual operating results appeared as follows. Determine the missing amounts. (Round Return on Investment to 1 decimal place, e.g. 52.7%.) Service revenue Variable costs Contribution margin Controllable fixed costs Controllable margin Average operating assets Return on investment $ Planes 5,018,000 1,518,000 25,018,000 12% Taxis $459,000 $ 189,000 79,000 10% Limos 329,000 389,000…Variance analysis can be useful in nonmanufacturing entities, especially when tasks are repetitive in nature. This allows management to analyze costs and make decisions to avoid higher expenses. In addition to the previous example involving housekeeping and hotels, can you think of any service-type repetitive tasks that could benefit from management analysis? Please respond to at least one classmate and cite at least one reference (can use your book as one reference).
- How should a responsibility-accounting system handle each of the following scenarios? 1. Department A manufactures a component, which is then used by Department B. Department A recently experienced a machine breakdown that held up production of the component. As a result, Department B was forced to curtail its own production, thereby incurring large costs of idle time. An investigation revealed that Department A’s machinery had not been properly maintained.2. Refer to the scenario above, but suppose the investigation revealed the machinery in Department A had been properly maintained.The Medford Burkett Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using a system of responsibility reports and return on investment calculations. The allocation of resources within the company and the segment managers' bonuses are based in part on the results shown in these reports. Recently, the company was the victim of a computer virus that deleted portions of the company's accounting records. This was discovered when the current period's responsibility reports were being prepared. The printout of the actual operating results appeared as follows. 3 # E D Determine the missing pieces of information. Format all dollar amounts with $, commas, and zero decimal places. Format percentages with % and zero decimal places. F3 + C Service revenue Variable costs Contribution margin Controllable fixed costs. Controllable margin Average operating assets Return on Investment F4 4…D. The Hilal Company uses a responsibility reporting system to measure the performance of its three investment centers: A, B, and C. Segment performance is measured using a system of responsibility reports and return on investment calculations. The allocation of resources within the company and the segment managers' bonuses are based in part on the results shown in these reports. Recently, the company was the victim of a computer virus that deleted portions of the company's accounting records. This was discovered when the current period's responsibility reports were being prepared. The printout of the actual operating results appeared as follows. A Service revenue 24 $450,000 $ ? Variable costs 5,000,000 320,000 Contribution margin 180,000 380,000 Controllable fixed costs 1,500,000 Controllable margin 70,000 176,000 Average operating assets 25,000,000 1,600,000 Return on investment 12% 10% Instructions Determine the missing pieces of information above.
- An objective of responsibility accounting is to: a) Provide information that helps managers make optimal decisions. b) Reward managers who have unfavorable variances. Jh c) Decrease productivity. d) Punish managers for variances based on factors outside of their control.Which of the following would be best considered to be an agency conflict problem in the behavior of the following financial managers? pack to later. O A. Bill chooses to pursue a risky investment for the company's funds because his compensation will substantially rise if it succeeds. O B. Sue instructs her staff to skip safety inspections in one of the company's factories, knowing that it will likely fail the inspection and incur significant costs to fix. OC. Michael chooses to enhance his firm's reputation at some cost to its shareholders by sponsoring a team of athletes for the Olympics. O D. James ignores an opportunity for his company to invest in a new drug to fight Alzheimer's disease, judging the drug's chances of succeeding as low. stv MacBook Air DII DD 888 F9 20 F7 F8 F6 F5 F4 esc F2 F3 F1 &The Ferrell Transportation Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured usinga system of responsibility reports and return on investment calculations. The allocation of resources within the company and the segment managers' bonuses are based in part on the results shown in these reports. Recently, the company was the victim of a computer virus that deleted portions of the company's accounting records. This was discovered when the current period's responsibility reports were being prepared. The printout of the actual operating results appeared as follows. Determine the missing pieces of information below. (Round intermediate calculations and final answers to 0 decimal places, eg. 1,255.) Planes Taxis Limos Service revenue 24 $504,700 $4 Variable costs 5,502,300 296,900 Contribution margin 255.000 485 420