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ruskin ruskin
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6 years ago
Samson Equipment Ltd. is a company that manufactures an abdominal exerciser called The Ab Rippler. The following information is for three of the company's activities in 2015:

   Rate per Output unit/Batch
         Static        Actual
   Activity   Activity Level   Cost Driver   Budget   Cost
Manufacturing   Output unit    Machine hours   $0.90   $1.05
Inspecting   Batch   Inspection hours   $15.00   12.50
Packaging   Batch   Packaging hours   $5.50   $5.25

The output measure is the number of units produced.

   Static     Actual
   Budget   Amount
Number of units produced   40,000   44,400
Number of machine hours   16,000   14,800
Batch size in terms of units produced:
   Inspection     5   4
   Packaging     20   25

Required:
a.   Calculate the flexible-budget variance for each activity in 2015.
b.   Calculate the price and efficiency variances for each activity in 2015.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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GarretAGarretA
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