Analysis of prime cost and overhead variances, Cost Accounting

You are required to conduct a detailed analysis of all the prime cost and overhead variances. You must create a fictitious company (and a fictitious cost object) which has at least three direct material categories; at least two direct labour categories and both variable and fixed overheads. You can refer to pages 476 and 532 of your prescribed textbook for detailed illustrations and also the lecture illustration which was discussed in the lecture and tutorial in week 7 and 8. Please make sure you clearly mention the standard and the actual quantity and price of all the inputs. You're encouraged to use diagrams and flowcharts to illustrate your analysis. In total, you'll be analysing 6 direct material variances (both price and efficiency variance for the three types of direct material - 3 x 2 = 6), 4 direct labour variances (both price and efficiency variance for the two types of direct labour - 2 x 2 = 4), 2 variable overhead variances (spending and efficiency variance) and 2 fixed cost variances (spending and volume variance). You MUST make sure that any 4 out of the 6 direct material variances are unfavourable and any 1 out of 4 direct labour variances are favourable. In the end you must prepare a short report (maximum 1,000 words) of your analysis, identifying possible reasons for favourable and unfavourable variances. You're also required to record the necessary journal entries to close all the variances.

Posted Date: 2/19/2013 1:04:40 AM | Location : United States







Related Discussions:- Analysis of prime cost and overhead variances, Assignment Help, Ask Question on Analysis of prime cost and overhead variances, Get Answer, Expert's Help, Analysis of prime cost and overhead variances Discussions

Write discussion on Analysis of prime cost and overhead variances
Your posts are moderated
Related Questions
Pyramid Printing Company is a printer of magazines and retail inserts. In addition, there are two joint products (food wrapping and book covers) and one byproduct (shipping-box ins

Direct and Indirect costs Recall such direct costs are costs which can be traced particularly to the end product of the production procedure while indirect costs cannot be so

A foreign company plans to clear several dozen acres of ecologically valuable mangrove swamp in Vietnam for the creation of a shrimp aquaculture facility. This decision will create

Compute Over and Under Absorption of Variable and Fixed Overhead A company has a machine cost center for that the given information is available as a) Budget i. Budget

You are the manager of a firm that sells output at a price of $40 per unit. You are interested in hiring a new worker who will increase your firm's output by 2,000 units per year.

formula for economic order quantity

Accounting for Job Order Costing - Direct Materials Direct materials (i) Dr Stores ledger control Account Cr Cash Account - for cash purchasers              X (ii) D

Fixed Overheads Variance This is defined like the difference between the fixed overheads attributed and the standard cost of fixed overheads absorbed in the production achieve

JK is a motor dealership which organizes its financial statements to 30 November. In the year to 30 November 2009, transactions integrated the following: (a) JK had motor vehicl

what is planning and what part of this activity would you describe as planning in the situasion above