User Account

All Pages

Calculate the static-budget and actual operating profit

Assignment Help Managerial Accounting
Reference no: EM132983833

Question - ThumbDrive Ltd produces USB flash drives (drives). They have the following budgeted standards for the month of March 2019:

Average selling price per drive $9.20

Total direct materials cost per drive $4.60

Direct manufacturing labour

Direct manufacturing labour costs per hour $17.00

Average labour productivity rate (drives per hour) 110

Sales commission cost per unit $0.75

Fixed overhead $990 000

Sales of 700 000 units are budgeted for March. Actual March results are:

Unit sales and production were 90% of plan.

Actual average selling price declined to $8.30.

Productivity dropped to 90 drives per hour.

Actual direct manufacturing labour cost is $15.20 per hour.

Actual total direct materials cost per unit increased to $3.90.

Actual sales commissions were $0.70 per unit.

Fixed overhead costs were $20 000 above plan.

Required -

(a) Calculate the following for March 2019:

1. static-budget and actual operating profit

2. static-budget variance for operating profit

3. flexible-budget operating profit

4. flexible-budget variance for operating profit

5. sales-volume variance for operating profit

6. price and efficiency variances for direct manufacturing labour

7. flexible-budget variance for direct manufacturing labour

(b) What inferences can you draw from the variances calculated in part (a) above?

Reference no: EM132983833

Questions Cloud

How many potential investors get five hundred shares each : If company go for the issuance of shares for this project and decided par value PKR 10 than how many potential investors can get 500 shares each?
What will be price of share after the end of eleventh year : If company expected to pay its first dividend after 1 year, What will be price of this share after the end of 11th year assuming required rate of return is 20%.
How much better is the deal : If you buy them from an online store you pay $6.78 each plus a shipping and handling fee of $2.56 for each DVD. How much better is the deal
Solve payback period and discounted payback period : If this plant has expected even cash inflow of 17 million each year for 5 years than calculate Payback period, discounted Payback period.
Calculate the static-budget and actual operating profit : Sales of 700 000 units are budgeted for March. Actual March results are: Unit sales and production were 90% of plan. Calculate the static-budget profit
When a country currency depreciates against the currencies : When a country's currency depreciates against the currencies of major trading partners? the country's exports tend to rise and imports rise.
Brief josh to evaluating components of internal control : Comparing the approaches the internal auditor and we, as external auditor, would take to assessing these components in relation to the new manufacturing
Difference accounting exposure vs translation exposure : What is the difference between accounting exposure and translation exposure? Accounting exposure and translation exposure are the same thing.
Reflect on the entire course : Reflect on the entire course. Identify and explain an aspect of HR that you believe can have a major impact on an organization recruitment and selection.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd