Cost Accounting Essay

Custom Student Mr. Teacher ENG 1001-04 7 January 2017

Cost Accounting

Problem 1:

Different management levels in Bates, Inc., require varying degrees of managerial accounting information. Because of the need to comply with the managers’ requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows:

Budgeted output units3,200units
Budgeted fixed manufacturing overhead$20,000
Budgeted variable manufacturing overhead$5per direct labor hour
Budgeted direct manufacturing labor hours2hours per unit
Fixed manufacturing costs incurred$26,000
Direct manufacturing labor hours used7,200
Variable manufacturing costs incurred$35,600
Actual units manufactured3,400


a.Compute a 4-variance analysis for the plant controller.

b.Compute a 3-variance analysis for the plant manager.

c.Compute a 2-variance analysis for the corporate controller.

Problem 2:

McKenna Company manufactured 1,000 units during April with a total overhead budget of $12,400. However, while manufacturing the 1,000 units the microcomputer that contained the month’s cost information broke down. With the computer out of commission, the accountant has been unable to complete the variance analysis report. The information missing from the report is lettered in the following set of data:

Variable overhead:
Standard cost per unit: 0.4 labor hour at $4 per hour
Actual costs: $2,100 for 376 hours
Flexible budget: a
Total flexible-budget variance: b
Variable overhead spending variance: c
Variable overhead efficiency variance: d

Fixed overhead:
Budgeted costs: e
Actual costs: f
Flexible-budget variance: $500 favorable


Compute the missing elements in the report represented by the lettered items.

Free Cost Accounting Essay Sample


  • Subject:

  • University/College: University of Chicago

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 7 January 2017

  • Words:

  • Pages:

Let us write you a custom essay sample on Cost Accounting

for only $16.38 $13.9/page

your testimonials