Red Rock East Company uses flexible budgeting for cost contr…
Red Rock East Company uses flexible budgeting for cost control. Red Rock produced 10,800 units of product during March, incurring an indirect materials cost of $13,000. Its master budget for the year reflected an indirect materials cost of $180,000 at a production volume of 144,000 units. A flexible budget for March production should reflect indirect materials costs of
Read DetailsPrice variances and efficiency variances can be key to the p…
Price variances and efficiency variances can be key to the performance measurement within a company. In evaluating the performance within a company, a materials efficiency variance can be caused by all of the following except the
Read DetailsThe question below is based on the following information. Ch…
The question below is based on the following information. Chem King uses a standard costing system in the manufacture of its single product. The 35,000 units of raw material purchased and used cost $105,000, and two units of raw material are required to produce one unit of final product. In November, the company produced 12,000 units of product. The flexible budget for material was $60,000, and there was an unfavorable static budget variance of $35,000. The number of outputs planned for in Chem King’s static budget was
Read DetailsDiscussion Question 1: (15 points) You are the Controlle…
Discussion Question 1: (15 points) You are the Controller of Kilgore and Ferino Company. Three of your company’s division managers have presented potential expansion project proposals to you. Based upon you analysis of available capital project funds for the upcoming year, you determine that the company will only be able to fund two of the three projects. Required: As the Controller, describe that analyses, processes and procedures that you would complete in determining which two projects to fund. (Make references to topics we have discussed in class from either the Management Accounting text, the Controllership text, or both.)
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