Activity-Based Costing, Batch-Level Variance Analysis
Not what you're looking for?
Activity-Based Costing, Batch-Level Variance Analysis
Rica's Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping department records both variable and fixed overhead costs. The following information pertains to shipping costs for 2008.
Static-Budget Amt's Actual Results
Pairs of shoes shipped 240,000 180
Avg # of pairs of shoes per crate 12 10
Packing hours per crate 1.2 1.1
Variable OH cost / hour $20 $21
Fixed OH cost $60,000 $55,000
1. What is the static budget number of crates for 2008?
2. What is the flexible budget number of crates for 2008?
3. What is the actual number of crates shipped in 2008?
4. Assuming fixed OH is allocated using crate-packing hours, what is the predetermined fixed overhead allocation rate?
5. For variable OH costs, compute the spending and efficiency variances.
6. For fixed OH costs, compute the spending and production-volume variances.
* Complete in Excel
Purchase this Solution
Solution Summary
Process for getting computations is well laid out and labelled. A template for other problems. Formulas are in cells.
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Motivation
This tests some key elements of major motivation theories.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.