Different Management Levels in Echuca Pty Ltd Require Varying Degrees

question 65

Essay

Different management levels in Echuca Pty Ltd 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:
$\begin{array}{ll}\text { Bud geted output units } & 6400 \text { units } \\\text { Bud geted fixed manufacturing overhead } & \$ 40000 \\\text { Bud geted variable manufacturing overhead } & \$ 10 \text { per direct labour hour } \\\text { Bud geted direct manufacturing labour hours } & 1 \text { hour per unit }\\\text { Fixed manufacturing costs incurred } & \$ 52000 \\\text { Direct manufacturing labour hours used } & 7200 \\\text { Variable manufacturing costs incurred } & \$ 71200 \\\text { Actual units manufactured } & 6800\end{array}$

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 CEO.
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