Cost Accounting Essay

Problem 1Different management levels in Bates, Inc., require varying degrees of managerial accounting information. Because of the need to comply with the managers requests, four divergent variances for manufacturing crash are computed each month. The information for the September overhead expenditures is as followsBudgeted output units3,200unitsBudgeted fixed manufacturing overhead$20,000Budgeted variable manufacturing overhead$5per direct labor momentBudgeted direct manufacturing labor mos2hours per unitFixed manufacturing costs incurred$26,000Direct manufacturing labor hours used7,200Variable manufacturing costs incurred$35,600Actual units manufactured3,400Requireda. exercise 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 2McKenna Company manufactured 1,000 units during April with a total overhead budget of $12,400. However, while manufacturing the 1,000 un its the microcomputer that contained the months cost information broke down. With the computer out of commission, the accountant has been unable to complete the variance analysis underwrite. The information missing from the report is lettered in the following set of dataVariable overheadStandard cost per unit 0.4 labor hour at $4 per hourActual costs $2,100 for 376 hoursFlexible budget aTotal flexible-budget variance bVariable overhead spending variance cVariable overhead efficiency variance dFixed overheadBudgeted costs eActual costs fFlexible-budget variance $500 favorableRequiredCompute the missing elements in the report represented by the lettered items.