VIEWS: 29 PAGES: 3 CATEGORY: Business POSTED ON: 7/5/2011
Ignore Income Taxes in This Problem. document sample
Name: Date: Instructor: Course: Managerial Accounting, 3rd Edition, by Weygandt, Kieso, and Kimmel Solving Managerial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse Problem P11-2A, Soriano Manufacturing Company uses a standard cost accounting system to account for the manufacture of exhaust fans. In July 2005, it accumulates the following data relative to 1,500 units started and finished. Cost and Production Data Actual Standard Raw materials Units purchased 17,400 Units used 17,400 18,000 Unit cost $3.40 $3.00 Direct labor Hours worked 2,900 3,000 Hourly rate $11.80 $12.20 Manufacturing overhead Incurred $87,500 Applied $93,750 Manufacturing overhead was applied on the basis of direct labor hours. Normal capacity for the month was 2,800 direct labor hours. At normal capacity, budgeted overhead costs were $20.00 per labor hour variable and $11.25 per labor hour fixed. Total budgeted fixed overhead costs were $31,500 Jobs finished during the month were sold for $240,000 Selling and administrative expenses were $25,000 Instructions: (a) Compute all of the variances for (1) direct materials, (2) direct labor, and (3) manufacturing overhead. Total materials variance: ( Title X Title ) - ( Title X Title ) ( Formula X Formula ) - ( Formula X Formula ) Formula - Formula = Formula Text Materials price variance: ( Title X Title ) - ( Title X Title ) ( Formula X Formula ) - ( Formula X Formula ) Formula - Formula = Formula Text Materials quantity variance: ( Title X Title ) - ( Title X Title ) ( Formula X Formula ) - ( Formula X Formula ) Formula - Formula = Formula Title Total labor variance: ( Title X Title ) - ( Title X Title ) ( Formula X Formula ) - ( Formula X Formula ) Formula - Formula = Formula Text Labor price variance: ( Title X Title ) - ( Title X Title ) ( Formula X Formula ) - ( Formula X Formula ) . Formula - Formula = Formula Title Labor quantity variance: ( Title X Title ) - ( Title X Title ) ( Amount X Amount ) - ( Amount X Amount ) Formula - Formula = Formula Text Total overhead variance: ( Title - Title ) ( Amount - Amount ) Formula Text FileName: 1d2e720e-cd4f-4628-885f-aff64b41c265.xls, Tab: Problem P11-2A, Page 1 of 3, 7/5/2011, 12:50 PM Name: Date: Instructor: Course: Managerial Accounting, 3rd Edition, by Weygandt, Kieso, and Kimmel Overhead controllable variance: ( Title - Title ) ( Amount - Amount ) . Formula Text Overhead volume variance: ( Title X ( Title - Title ) ( Amount X ( Amount - Amount ) Amount X Amount = Formula Text (b) Prepare an income statement for management showing variances. Ignore income taxes. SORIANO MANUFACTURING COMPANY Income Statement For the Month Ended July 31, 2005 Title Amount Title Formula Title Formula Title Title Amount Title Amount Title Amount Title Amount Title Amount Title Amount Title Formula Title Formula Title Amount Title Formula FileName: 1d2e720e-cd4f-4628-885f-aff64b41c265.xls, Tab: Problem P11-2A, Page 2 of 3, 7/5/2011, 12:50 PM Instructions for the Microsoft Excel Templates Detail and information on Excel is contained within the manual. Striking the "F1" key or following the path "Windows>Excel Help" will invoke the Office Assistant and bring up one of several help menus. Type your name into the cell "D5". This will be copied by formula to the rest of the pages as required. Type the due date of your problem into cell "I5". This will be copied by formula to the rest of the pages as required. Type the instructor's name into cell "D6". This will be copied by formula to the rest of the pages as required. Type the course identifier into cell "I6". This will be copied by formula to the rest of the pages as required. The problem is identified for you in cell "B7". In "DATE" cells enter the date in any of several formats and Excel will format it correctly. If more than one page is preformatted into the problem, page breaks are preset and formulas are set to copy the header into the remaining pages. Place the proper account title in the cell where the word "ACCOUNT" appears on the template. Place the amount in the cell where the word "AMOUNT" appears on the template. A formula may be placed in Enter a number like 914 to signify units or gallons where the word "NUMBER" appears. Write a formula into cells where the word "FORMULA" appears. In these cells, an amount calculated outside of Place the explanation for the entry in the cell where the word "EXPLANATION" appears on the template. Insert the account number where "ACCT #" appears on the template during posting. Insert the journal reference where "JOURN #" appears on the template during posting. Insert the title in the cell where "TITLE" appears on the template. The print area is defined to fit onto 8 1/2" X 11" sheets in portrait or landscape mode as required. The gray filled cells define the perimeter of the problem and the print area. The problem is formatted for whole dollars with comma separations (no cents) except where required. The display may have "Freeze Pane" invoked so column titles remain visible during data entry. Negative values may be shown as ($400) vice -$400. Enter a string like: ($259,417 X 12 months) + (0.3651 X 5,434,631) where the word TEXT appears.