Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed

Price and efficiency variances, problems in standard setting, benchmarking

Download 1.72 Mb.

View original pdf

Page	330/469
Date	01.12.2021
Size	1.72 Mb.
	#57828

1 ... 326 327 328 329 330 331 332 333 ... 469

solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1

Flexible budget Actual costs (Budgeted input incurred allowed for actual

15.23 Price and efficiency variances, problems in standard setting, benchmarking.
(30–40 min)
1
Budgeted materials input per shirt = 0.10 roll of cloth Budgeted manufacturing labour-hours per shirt = 0.25 hours Budgeted materials cost = €50 per roll Budgeted manufacturing labour cost per hour = €18 per hour Actual output achieved = 4,488 shirts.

Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012

Flexible budget

Actual costs

(Budgeted input

incurred

allowed for actual

(Actual input
Actual input
Output achieved

× Actual price)
× Budgeted price
× Budgeted price)
Direct

(408 × €450)
(4,488 × 0.10 × €50) materials €20,196 €20,400
€22,440

€204 FF Price variance
Efficiency variance Direct manufacturing
(1,020
×
€18)
(4,488 × 0.25 × €18) labour €18,462 €18,360
€20,196

€102 U
€1,836 F Price variance
Efficiency variance

Download 1.72 Mb.

Share with your friends:

1 ... 326 327 328 329 330 331 332 333 ... 469