Analysis of prime cost and overhead variances, Cost Accounting

Assignment Help:

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.


Related Discussions:- Analysis of prime cost and overhead variances

Taxable transfers, Greta Grantor made $1 million of taxable gifts in 2009, ...

Greta Grantor made $1 million of taxable gifts in 2009, the only taxable gifts she made prior to this year.  Greta was married on January 2nd of this year to Gerard Gold digger. De

Calculate the atm fee should the bank charge - marginal cost, A bank in a m...

A bank in a medium-sized midwestern city, Firm X, currently charges $1 per transaction at its ATMs.  To determine whether to raise price, the bank managers experimented with a n

Assignment, Ed Mettway was concerned about his firm''s ability to acquire t...

Ed Mettway was concerned about his firm''s ability to acquire the necessary property, plant, and equipment to take advantage of steadily increasing sales. Touring Enterprises, esta

Cost accounting, Cost Accounting Cost accounting has been defined via ...

Cost Accounting Cost accounting has been defined via many accounting scholars in different forums. There is no single watertight definition of cost accounting, however the var

Irr, The following data pertains to an investment proposal: Required invest...

The following data pertains to an investment proposal: Required investment $400,000 Annual cost savings $105,700 Projected life of investment 6 years Projected salvage value $0 Req

Prepare an amortization table, On January 1, 2012 Morgan's Motors issued $5...

On January 1, 2012 Morgan's Motors issued $500,000 of 3-year, 8% bonds when the market yield was 6%. The bond agreement stated that compounding was semi-annual with payments due on

The weaknesses of an incremental budgeting system, Traditional budgeting  s...

Traditional budgeting  systems are  incremental  in nature and  tend  to  focus on  cost  centres.  Activity-based  budgeting  links  business  planning  to  the  budgeting  proces

Normal job-order costing system, A normal job-order costing system is a sys...

A normal job-order costing system is a system that uses :    A.  actual costs for direct materials and estimated costs for direct labor and overhead B.  estimated costs

Calculate the break-even level of sales, Me ole cock spaniel plc. makes 3 p...

Me ole cock spaniel plc. makes 3 products, details as follows:   Apples (£)       Pears (£)         Cockneys (£)   Selling price        60               80

Prepare journal enteries to record the requisition slips, Stine Company use...

Stine Company uses a job order cost system. On May 1 st , the company has a balance in Work in Process Inventory of 3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 4

Write Your Message!

Captcha
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!

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