ACCT346 Discussions Week 6

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ACCT346 Discussions Week 6
How are budgets used in the management roles of Planning and Control? Why are budgets…

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ACCT346 Discussions Week 6

ACCT346 Discussions Week 6

All Students Post 90 Pages

Budgeting – 46 Pages

How does a company effectively use budgets in the planning and control process? As it is preparing the budget, what is the difference between the top-down and the bottom-up approach to development? Which do you think is more commonly used and why?

How are budgets used in the management roles of Planning and Control? Why are budgets important? Do you use Budgets in your job? What is the difference between Static Budgets and Flexible Budgets? How are static budgets and flexible budgets related? How does a company effectively use budgets in the planning and control process? As it is preparing the budget, what is the difference between the top-down and the bottom-up approach to development? Which do you think is more commonly used and why?…

Standard Costs and Variance Analysis – 44 Pages

What role do standard costs play in controlling the operations of a business? How are standard costs developed for direct materials, direct labor, and manufacturing overhead? Are there ever costs that we can’t develop standards for related to manufacturing the goods?

Why do we try to get a standard cost for items going into the products we manufacture? What role do standard costs play in controlling the operations of a business? How are standard costs developed for direct materials, direct labor, and manufacturing overhead? Are there ever costs that we can’t develop standards for related to manufacturing the goods? What do we see when we analyze the variances?…

PROBLEM #1 FOR EVERYONE
Talya Company produces Basketballs. The standard cost for each Basketball is:
Direct material, 4 ft @ $6.00/ft = $24.00
Direct labor, 4 hours at $15.00/hr = $60.00
During December 4,000 basketballs were produced. 19,600 ft of leather were purchased at $5.85/ft and 18,600 ft were used in production. Direct labor costs incurred were $270,000 for 20,000 hours.
a)What is the direct material price variance
b) What is the material usage variance?
c) What is the Labor rate variance?
d) What is the labor efficiency variance?
Be sure to indicate if FAVORABLE or UNFAVORABLE. That is crucial…