Which of the following would cause an adverse fixed overhead volume variance?
A special contract requires 640 units of component T.
The inventory of 280 units of component T cost $0.20 per unit but the component is not currently used by the company.
The current market price of component T is $0.24 per unit but the inventory could be sold for $0.15 per unit.
The relevant cost of the units of component T required for the special contract is:
TP makes wedding cakes that are sold to specialist retail outlets which decorate the cakes according to the customers’ specific requirements. The standard cost per unit of its most popular cake is as follows:
The general market prices at the time of purchase for Ingredient A and Ingredient B were $23 per kg and $20 per kg respectively.
TP operates a JIT purchasing system for ingredients and a JIT production system; therefore, there was no inventory during the period.
Prepare a statement which reconciles the flexed budget material cost and the actual material cost. Your statement should include the material price planning variances, and the operational variances including material price, material mix and material yield.
What was the material price planning variance for ingredient A?
Where sales volume is the principal budget factor, which of the following is the correct order in which budgets have to be prepared?
TESTED 26 Apr 2024
