Chapter five measuring yield, mix and quantity effects learning Objectives
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Applied Econometrics using MATLAB, Management and Cost Accounting, case study 301.docx
| EXERCISES Intermediate level 1. Direct materials efficiency, yield and mix variances. (CMA, adapted) (20—25 minutes) Paix-Trolls, SARL, produces a petrol additive, Elysium, that increases engine efficiency and reduces petrol consumption. The actual and budgeted quantities (in liters) of materials required to produce Elysium and the budgeted prices of materials in August 2002 areas follows: 22 Chemical Actual quantity Budgeted quantity Budgeted price __[___________________________________________________________ Echol 24080 25,200 $0.20 Protex 15,480 16,800 Benz 33,600 CT 10,320 8,400 REQUIRED Calculate the total direct materials efficiency variance for August 2002. 2 Calculate the total direct materials yield and mix variances for August 2002. 3 What conclusions would you draw from the variance analysis 2. Direct nursing labour efficiency, yield and mix variances. (25 minutes) Les Cliniques du Parc reports the following information for July 2002 regarding its nursing staff consisting of nurses, nursing assistants and orderlies. Actual hours Budgeted hours Budgeted rate per hour Nurses 8750 8100 SFr Nursing assistants 4900 5400 Orderlies 3850 4500 REQUIRED Calculate the total direct nursing labour efficiency variance for July 2002. 2 Calculate the total direct nursing labour yield and mix variances for July 2002. 3 Briefly describe the conclusions you would draw from the variance analysis. Variance analysis of revenues, multiple products. (3 0—40 minutes The Antwerp Lions play in the Flemish Football League. The Lions play in the Antwerp Stadium (owned and managed by the City of Antwerp, which has a capacity of seats (10 000 lower-tier seats and 20000 upper-tier seats. The Antwerp Stadium charges the Lions a per-ticket charge for use of their facility. All tickets are sold by the Reservation Network, which charges the Lions a reservation fee per ticket. The Lions budgeted net revenue for each type of ticket in 2001 is calculated as follows: Lower-tier tickets Upper-tier tickets ___________________________________________________________ 23 Selling price $35 Antwerp Stadion fee 10 Reservation Network fee 5 Net revenue per ticket 20 The budgeted and actual average attendance figures per game in the season are: Budgeted seats sold Actual seats sold _________________________________________________________ Lower tier 8000 Upper tier 12000 Total 20,000 There was no difference between the budgeted and actual net revenue for lower-tier or upper-tier seats. The manager of the Lions was delighted that actual attendance was above budgeted attendance per game, especially given the depressed state of the local economy in the past six months. REQUIRED 1. Calculate the sales-volume variance for individual product net revenues and total net revenues for the Antwerp Lions in 2001 2. Calculate the sales-quantity and sales-mix variances for individual product net revenues and total net revenues in 2001. 3. Present a summary of the variances in requirements 1 and 2. Comment on the results. Download 182.97 Kb. Share with your friends:
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