题目

The following data have been extracted from the budget working papers of WR Co: 

Activity (machine hours)                                      Overhead cost                                   

                                                                                              $        

            10,000                                                                 13,468

            12,000                                                                 14,162

            16,000                                                                 15,549

            18,000                                                                 16,242 

In November 20X3, the actual activity was 13,780 machine hours and the actual overhead cost incurred was $14,521. Give your answer to the nearest $10. 

Calculate the total overhead expenditure variance for November 20X3.  

$_________ Favourable/Adverse (select the correct option) 

Chapter11Varianceanalysis

The correct answer is: $260 Favourable. 

The overhead cost given, includes both fixed and variable costs. Fixed and variable budgeted overhead costs can be separated using the high/low method.  

                                             Hours                           $ 

High                                   18,000                      16,242 

Low                                    10,000                      13,468  

                                              8,000                         2,774 

The variable cost per machine hour can be estimated as $2,774 / 8,000= $0.34675 

The fixed cost is $10,000, being the difference between variable overheads of 10,000 × 0.34675 and total cost of $13,468.  

The total overhead variance for November is: Fixed overhead + Variable overhead for quality achieved - Total actual overhead cost incurred. 

Budgeted cost ($10,000 + 13,780 × $0.34675)

Total actual overhead cost incurred

                $ 

           14,778 

           14,521 

                 257                    (F) 

多做几道

What objectives might the following not for profit organisations have? 

(a) An army                                                (d) A political party 

(b) A local council                                     (e) A college 

(c) A charity 

One of the objectives of a local government body could be 'to provide adequate street lighting throughout the area'. 

(a) How could the 'adequacy' of street lighting be measured? 

(b) Assume that other objectives are to improve road safety in the area and to reduce crime. How much does 'adequate' street lighting contribute to each of these aims? 

(c) What is an excessive amount of money to pay for adequately lit streets, improved road safety and reduced crime? How much is too little? 

What general objectives of non profit seeking organisations are being described in each of the following? 

(a) Maximising what is offered 

(b) Satisfying the wants of staff and volunteers 

(c) Equivalent to profit maximisation 

(d) Matching capacity available 

A division with capital employed of $400,000 currently earns an ROI of 22%. It can make an additional investment of $50,000 for a five year life with nil residual value. The average net profit from this investment would be $12,000 after depreciation. The division's cost of capital is 14%. 

What are the residual incomes before and after the investment? 

The transfer pricing system operated by a divisional company has the potential to make a significant contribution towards the achievement of corporate financial objectives. 

Required 

Explain the potential benefits of operating a transfer pricing system within a divisionalised company. 

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