REAL RHAL EXCELLENCE ' J rine aca 20 1, the varabla| 21. fovea sapped one ost unite ofthe acti) " » sinanine nssgeted eel tiene barca as «untevorti, {UPS 8° ancy variance \ 22. Venable overhead is spplied on the basis of standard direct DoE rows. fora aban peiod, Me direct tabor eee ena oes nba enoner T Pn rec aor a favorable di *earor that could not Neve 23. For giventine patod a company na a avorabie materi aval) atn0 Foe ie erate fond overeed veuma variance the fotow'nd, M60? three variances is [h'the purchase of higher qualty materials, anincrease fC inary, _ these of ioverskiled workers 1, The standard jon supervision et of manufacturing in ts smal appliance ds ced factory overhead IS IPsper labo: hou, and the budgeted x f eapaeity of 1,800 units Dunit of Zeb compared with a nowmal ound P2570 3720 24.20 pis 10 s 3e 8,270 untavorale P1920 favorable contro? Is quantty variance or price variance fd direct labor hours measures from stancard.orect aber cape Parvin oom or denomator, vel of Sect labor hours the depertre from the denominator level of activity that tices sets the folowng standards for Convenience CPAREVIEW08, ve. Ph, HBA A, MIS, nap vic FEST REAL. Ee i ponding and Fred SF ring te Variable Si Sw Any = se nna st) Spending Var oa atu Factory OF 1b) Variable Eficiney Variance ) Capacity oF Volume ee wet nay anahss vanance The MO 4 vay analyte eves tre valence the Corrotatle and Non 2 ‘Controlabe Variance otal Acta Factor} O 1b) Volure or Capacty "Same win aay analysis 13 Spending + Varable Eficenof scouate ets eheed BASH Sea 425° Financial planning and budgets fe wnia for only the planned level of act Ping to compre actual cost thesia, “changed planning Bere Cin aciery atic! costs. A fexble budget is cea of what evel of acbty fr the porod ILLUSTRATION F Rotvock P Ding December, mie circ budgeted fr 3.400 e cis bases its tudgets on the folowing eg arould be P2E,200 pet mont plus P87 ‘yo of ore V2 perpatentxist $20 per patont-nst_ Occurancy expenses should Cis measure. Foire 600 per Eid be PS,000 per month clus PO20 per enti The ‘The variables ni vanable ¥. ¥ land spending variances for December. Label Jana spending variances for December. Labelpogo 1419S 39 “isa (/REAL EXCELLENCE coms us ‘rua vc F.ESTOQUE, CPA, MBA, RCA, Mh HATEATIONS TOQUE CPA MBA. RCA, MCB GAT, A [fine folowing cata pert aad ost Von th mente February 35 80 per nt 3tP8.00 per nit Drectiaber —petua Lequied 6 5 Requred: Compute the i workers. Skiled workers cass C Parhour To produes one S5-gaton drum of sovent ie Aare. Pa QP! £0 per v0! Pidoper sal sen Haborhours per month Atrormal capanty, he standart factory 1000 of budgeted fxed expenses per month and a varable Ihe dopariment operated at 5.600 drectatcr hours. wih ber of standard direct labor how's alowed forthe ead varianceae Page oot 2 con HAD Ve S2TOQUE, CPA. MBA RCA MICB, CAT, CA ‘Sonderd ow vars D_P18,00 tavoratie "i, Supesor sare ae execs fo be cuted Tbe wou eect abuse’ vewee ot et of arances ound na D P10 000 unfavorable for nis yea, JoyT estmated variate ng system, an factory nave been used /. Convenience iE CPA REVIEWMAD YRC Esi00UR. con waa Red wom Bar ak Automation o ** r ‘Sad Cm Yate Quantity alowed for sexy ‘Answer the Berman variances. F ell lowing 3 mera Shop hoe ‘Senos a tvorc Flexible ‘Varian seaiail Budyet EMcleney pes P0000 Flos i sor ata eating o rect abo he's rect ltor rate perhourinAprt wos 0 January were 9s fow ¢ Convenience CPA REVIEW sobles 19 potea on role near se tileREAL EXCELLENCE ncieate sax intiee inventory metnods Tan unoverave pce vonarce fr direct matrills MOM ESS g change A ate scan reas: et sate quarities 8 conneston ue fo hades iru egotsied aati ure Pee 5 reste bn unexpected oversupp of rose mates rable efeiency vaiance for arect mateals might indicate le ‘A that lower-quaiy materiale were purchased Me peor doin of produ or PoE 8 an overkites wontoree B.biower preed suppler was 5: A favorable pce vanance for drect manufacturing abot mahtindicate 4 employees were pat more han panned 2, pasekiled employees are Ben 6 Suagetes pice standard ae to tht 1. an efient abort 6 An unfavoranie emery variance or rect manufectising abot might nical schedule 1 budgeted bme standards ar 100 Sa catrkers were seredued tan planned 9 need blow: iS for direct material and Hoved products, the I wel as inching crenbery and sect abot, In September, AVO AVEO classic Grandma's large apple mine ingredients I Bes ung 1,875 pounds of crectmstarls at an average cost ge wage of P14.25 per hour ~ : 1G P7500 eriavcrable 0 None ofthese answers are contest. P7500 unlevoratle 0. Nove o these answers are corect P54275 favorable 0. P543.75 unfaver G_P280.00 favorable‘onlp Decor Mai eee ce. ak _ e REAL uo wer TOE OM NON eZ EXCELLENCE t 1 psrsntaversve iance ft the YES «gg favorable. 236. Frank's fred overnend spending a raverable. Aipaea0euntevorsnis 8 P1000 rcnncyvrarce 2 TES. yas, 0. P53 00 HOON ‘A pos 000 untwvorabie. B. Pas.s20 evra, ©: PS Ws hee rend vor vance YS parle 0 PIB CO EVO S30 uvavoasie 8 Peoo0 23 aon ang tec bsp sstenne conor he ae cvernend sensing vanance he 1 scivarae ovorea an ne previous aucpte 8 ferro on aan age pu fom eco? Be ama aplegteworengerse a al ova ova fun varie petnoad and stalinpts tines he bots te akabsomton, sindard-0st 5 basis production volume vara sent unt forits production costs. The stem to a: Torbonin a month when nce wil Betaicart alowed cect abo nous dies rom actual xed factory OF Hallowed arect labor nous ard alvred rect labor hours ier rom the buogeted fixed factory labor hours, inestabisring standard costs or evaluation purposes? 1 Top manager ae JB Budgetary accountants 8 information forthe past month 100,000, 1900 $000 favoratle. 0. P200,000 unfavorable xy. Convenience INE GPA REVIEWj REAL sf EXCELLENC, ines A Acarvary wpe vate vanes fat is P25 000 favorate. A pounce tS soon dee ane ste wre boon Ena NO Wer csroaue con, i ed Sl ‘Sodan Got Ye 1 as arabe overnad efictony variance labor was used facture ny : ats wer ewer fan expected tertheyear oe machina noon a ohne 48, Nanjoes Company man planned manufacturing data overhead based on planned ugh wholesalers. Presented telow ae Phase anes era. Y=" Te. comeNY some Verabmarsocutngenthing Staion Sawai selierae Beat ENS ees fess 240000 22000 4200 4.000 24800 21.000 0s 200, P2t4'000, P5,000 favorable. 0. P5.000 untavorable Hn overhead applies based on dec abo: hours. The ifr tne monty of June ncluces 10,00 hours of deat abor a Produced, using 8 €00 crc: lazer hcurs,ineuring P29, 260 of lency variance cf P2 400 unfavorable. The standard varable 10 ty relating tots fixed and variate ovethead ‘or the month of duly. ee P20 per direc labor hour, how ecient or aS an activity base? ficient. . 400 hour ad 1D. P3,000 favorable atwo FAL cic rune — 1 cPh MOM, REAL aan wc F ESTOQUE, CPA MO EXCELLENCE psoas \ om avenavrs cont pespeetve gy Fe. ncn ono tte jemng varances of est sivas HOT Seth arog fx Ee PL 2 3, in ee ote lowing nares ring aon oe cual Bowed pga xe UP Te cots Unters matera aunt ates ening 1 maxes Ne PUES eh be cal Yeu CC. Faced overhead volume varance resulting from manager Ddgetes output ty 20% oy Favorable abo rate variance resulting om an inal oe experienced kere to replace retiring workers 51, nd bd pen et sats rose! provers or se 8 HH ‘nia Budget inal renee ee ) 01000 tmarabie. A°P10,000 una ©, P#,000 favorable. G.P5,000tavoradie. 0, P4,600 favorable, [Products Company forthe month of July ‘Actual 3,800 53,200 48,000 36/000 7,800 40,000 uy would be (€-P1,800 untavorable 0. P200 favorablo Beare tor ol t's vein fx A exible Budget Static (Master) Bude 11,000 at 220.000 410,000 Pri0.000