University:
Grand Rapids Community College
Course:
Financial and Managerial Accounting: Information for Decisions - John J. Wild
Academic year:

2024
Views:

221

Pages:

2
Author:

stud_ice13

Problem 21-1B: Preparing and Analyzing a Flexible Budget 1. Classify Budget Costs: Identify all items in the fixed budget as either variable or fixed costs. Calculate: o Variable costs: amount per unit. o Fixed costs: amount per year. 2. Prepare Flexible Budgets: Create flexible budgets for production/sales volumes of 18,000 and 24,000 units. 3. Budgeted Income Statement: Prepare a projected income statement for a scenario where sales reach 28,000 units, indicating potential improvements. Check: Ensure the budgeted income at 24,000 units totals $372,400. Problem 21-2B: Flexible Budget Performance Report 1. Flexible Budget Performance Report: With actual sales of 24,000 units, prepare a performance report comparing the flexible budget to actual performance. Problem 21-3B: Flexible Overhead Budget and Variance Analysis 1. Prepare Flexible Overhead Budgets: For Suncoast Company, show variable and fixed costs at 65%, 75%, and 85% capacity. 2. Direct Materials Variance: Calculate both price and quantity variances. 3. Direct Labor Variance: Determine rate and efficiency variances. 4. Overhead Variance Report: Create a detailed overhead variance report showing individual variances for each overhead item. Check: Budgeted total overhead at 17,000 units should be $384,000. Problem 21-4B: Calculating Variances for Materials, Labor, and Overhead 1. Direct Materials Variance: Calculate the price and quantity variances. 2. Direct Labor Variance: Calculate rate and efficiency variances. 3. Overhead Variances: Compute both controllable and volume variances. Problem 21-5B: Expanded Overhead Variances 1. Overhead Variance Calculation: o o o Variable overhead: Calculate spending and efficiency variances. Fixed overhead: Calculate spending and volume variances. Overhead controllable variance. Problem 21-6B: Recording and Analyzing Costs and Variances 1. Journal Entries for June Operations: Record entries dated June 30 for: o Direct materials costs and variances. o Direct labor costs and variances. o Overhead costs and variances. 2. Management by Exception Analysis: o Identify significant variances that would require management’s attention. o Suggest actions the manager should consider to address these variances. This summary breaks down each part of the assignment, ensuring that each calculation and report aligns with the given requirements. For successful completion, focus on accurately identifying costs, calculating variances, and preparing both performance and flexible budgets according to specified capacity levels.