Adrian Power

Adrian Power manufactures small power supplies for car stereos. The company uses flexible budgeting techniques to deal with the seasonal and cyclical nature of the business. The accounting department provided the accompanying data on budgeted manufacturing costs for the month of January:

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

                                            ADRIAN POWER 

              Planned Level of Production for January

Budgeted Production (in units)                           14,000

Variable Cost (vary with production)

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Direct Material                                                             $140,000

Direct Labor                                                                       224,000

Indirect Labor                                                                       21,000

Indirect Material                                                                10,500

Maintenance                                                                            6,300

Fixed cost

Supervision                                                                            24,700

Other (depreciation, taxes, ect.)                              83,000

Total plant cost                                                              $510,000

 

 Actual operations for January are summarized as 

                                               ADRIAN POWER

                                Actual Operations for January

Actual Production (in units)                                    15,400

Actual Cost incurred

Direct Material                                                             $142,400

Direct Labor                                                                       259,800

Indirect Labor                                                                       27,900

Indirect Material                                                                12,200

Maintenance                                                                            9,800

Supervision                                                                            28,000

Other (depreciation, taxes, ect.)                              83,500

Total plant cost                                                              $563,600

 

Required: 

a. Prepare a report comparing the actual operating results with the flexible budget at actual production. b. Write a short memo analyzing the report prepared in part (a). What likely managerial implications do you draw from this report? What are the numbers telling you? 

Adrian Power manufactures small power supplies for car stereos. The company uses flexible budgeting techniques to deal with the seasonal and cyclical nature of the business. The accounting department provided the accompanying data on budgeted manufacturing costs for the month of January:

Actual operations for January are summarized as

Required:

a. Prepare a report comparing the actual operating results with the flexible budget at actual production.

b. Write a short memo analyzing the report prepared in part (a). What likely managerial implications do you draw from this report? What are the numbers telling you?

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.

Order your essay today and save 30% with the discount code ESSAYHELP