Author Question: Different management levels in Bates, Inc., require varying degrees of managerial accounting ... (Read 108 times)

fnuegbu · **on:** Mar 6, 2021

Different management levels in Bates, Inc., require varying degrees of managerial accounting information. Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows:

Budgeted output units

3,200

units

Budgeted fixed manufacturing overhead

$20,000

Budgeted variable manufacturing overhead

$5

per direct labor hour

Budgeted direct manufacturing labor hours

2

hours per unit

Fixed manufacturing costs incurred

$26,000

Direct manufacturing labor hours used

7,200

Variable manufacturing costs incurred

$35,600

Actual units manufactured

3,400

Required:

a.	Compute 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.

d. Compute the flexible-budget variance for the manufacturing vice president.

robbielu01 · **Reply #1 on:** Mar 6, 2021

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