Questions
MCD1010 - T3 - 2024 Favourable or Unfavourable and amounts
Multiple fill-in-the-blank
Question textFor October determine the amount of the variances and whether favourable, unfavourable or no variance. For the amounts it is just the amount, not + or - [table] Details | October Budget | October Actual | October $ Variance | Favourable or Unfavourable Cash Receipts: | Cash Sales | $9,000 | $8,800 | Answer 1 Question 1 | Answer 2 Question 1 FavourableUnfavourableNo Variance Receipts from Accounts Receivable | $18,300 | $22,500 | Answer 3 Question 1 | Answer 4 Question 1 FavourableUnfavourableNo Variance Total Cash Receipts | $27,300 | $31,300 | Answer 5 Question 1 | Answer 6 Question 1 FavourableUnfavourableNo Variance Payments | Advertising | $500 | $600 | Answer 7 Question 1 | Answer 8 Question 1 FavourableUnfavourableNo Variance Electricity | $800 | $700 | Answer 9 Question 1 | Answer 10 Question 1 FavourableUnfavourableNo Variance Cost of Sales | $12,600 | $14,800 | Answer 11 Question 1 | Answer 12 Question 1 FavourableUnfavourableNo Variance Rent | $3,000 | $3,000 | Answer 13 Question 1 | Answer 14 Question 1 FavourableUnfavourableNo Variance Wages | $4,500 | $5,100 | Answer 15 Question 1 | Answer 16 Question 1 FavourableUnfavourableNo Variance Annual Insurance | $0 | $750 | Answer 17 Question 1 | Answer 18 Question 1 FavourableUnfavourableNo Variance Total Cash Payments | $21,400 | $24,950 | Answer 19 Question 1 | Answer 20 Question 1 FavourableUnfavourableNo Variance Net Cash change | $5,900 | $6,350 | Answer 21 Question 1 | Answer 22 Question 1 FavourableUnfavourableNo Variance [/table]
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
To determine October variances, we compare actual amounts to the October budget for each line item and report only the absolute amount of the difference (the sign is not shown in the numeric answer). Then we interpret whether each variance is favourable or unfavourable in context.
Cash Receipts:
- Cash Sales: Budget 9,000 vs Actual 8,800. Variance = |8,800 − 9,000| = 200. Since actual cash sales are less than budget......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
Question at position 3 The following information is available: [table] | Budgeted | Flexed | Actual Output (units) | 600 | 650 | 650 Sales revenue (£) | 420,000 | | 468,000 Raw materials (£) | (24,000) | | (27,300) Labour (£) | (12,000) | | (14,300) Fixed overheads (£) | (126,000) | (126,000) | (110,700) Operating profit (£) | 258,000 | | 315,700 [/table] The variance for operating profit is:£25,700 favourable£64,000 favourable£6300 adverse£70,300 favourableClear my selection
Chris tells you that he budgeted the market size to be around 100,000 frames. However, the actual market size was 130,000 frames. Given this information, calculate the Market Size Variance.
Which of the following interpretations of the materials variances makes sense:
Tell me which statement is consistent with the variances you have calculated so far.
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!