Our Services

Get 15% Discount on your First Order

[rank_math_breadcrumb]

The Special Widget division manufactures a product called SW for Global Corporation. The plant is a completely autonomous subsidiary that sells SWs to other subsidiaries of Global Corporation, as well

The Special Widget division manufactures a product called SW for Global Corporation. The plant is a completely autonomous subsidiary that sells SWs to other subsidiaries of Global Corporation, as well as outside companies. At the beginning of the year the controller for Special Widget estimates sales and unit costs based on projections from past quarters’ data. Projected sales for the quarter are 11,000 units and budgeted unit costs are as follows:

Direct costs

Unit Costs Raw materials (10 bls at $3.00/Ibs

$30.00 Direct Labor (.5 hours at $12/hour) |

$6,00 Total direct cost per unit

$36.00

At the end of the quarter the budget and the actual results are compared. Usually the variances between the projected budget and the actual results are negligible. However, this quarter the results are drastically different from the budget. Projections estimated $27,500 ni gross profit, but actual gross profit shows a loss of $23,090. The general manager, who leads the profit center, received a variance report from production, but that didn’t explain the entire difference. Having no confidence in his controller, the general manager brought ni the internal audit team from Global Corporation. As the internal audit team, the first report required should use variances to explain the entire difference in gross profit and interpret those variances to initiate further investigation or corrective action. Detailed information about production and sales is as follows:

Actual Budget

Production Volume (units)

11,000 units 11,000 units Sales Volume (units)

10,000 units 11,000 units| Sales Price per unit|

$45.00 $46.00 Direct labor hours

5,610 hours 5,500 hours Direct labor cost

$66,759 $66,000 Raw Materials purchased (Ibs) 120,000 bls 110,000 bls

Raw Materials purchased (S) Raw Materials used (Ibs) | Overhead Costs (S)

$384.000

$330.000 115,500 lbs 110,000 lbs $84.050 $82,500

The report should include:

  • Projected income statement, actual income statement, and flexible budget

• All relevant variances

• Interpretations of those variances

• Hint: Overhead is applied based on direct labor hours and over/underapplied overhead is applied directly to cost of goods sold.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Write 200–250 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Please complete the following:

Write 200–250 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas.  Please complete the following: An entrepreneur is someone who has a passion and desire to organize and operate their own business. Using a business plan, an

Company: Samsung In this discussion, research income tax disclosures for a public corporation and access the impact of the tax differences on the income statement. Research this topic using AI (Copil

Company: Samsung In this discussion, research income tax disclosures for a public corporation and access the impact of the tax differences on the income statement.  Research this topic using AI (Copilot or Chatgpt.com, for example) and present your findings. Include a summary of the topic,  and what you learned after

KEONIA- UP TO 12/5/2025- ***** IMPORTANT: PLEASE MAKE SURE THAT ALL WORK IS AUTHENTIC- DO NOT USE AI/ PLAGERISE AS THE ASSIGNMENT WILL BE RUN THROUGH TURN IT IN!!!!!***** ****** THIS ASSIGNMENT HAS 4

KEONIA- UP TO 12/5/2025- ***** IMPORTANT: PLEASE MAKE SURE THAT ALL WORK IS AUTHENTIC- DO NOT USE AI/ PLAGERISE AS THE ASSIGNMENT WILL BE RUN THROUGH TURN IT IN!!!!!*****  ****** THIS ASSIGNMENT HAS 4 PARTS / PLEASE LABEL EACH PART SEPARATELY WITH REFERENCES WHEN COMPLETED****** **** FISCAL ACCOUNTABILITY **** PART

Write 200–250 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. For this Discussion Board, ple

Write 200–250 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas.  For this Discussion Board, please complete the following: A virtual business is any kind of business that is run via the Internet. With no physical location

Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Payroll has many different parts.

Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Payroll has many different parts. Not only is the employee paying taxes, but the employer is also paying additional payroll taxes. Watch the following

Company: Tesla In this discussion, please reflect on this weeks’ topics of corporate bonds and long-term debt. Choose a public corporation and evaluate the bond disclosure notes included with the fin

Company: Tesla  In this discussion, please reflect on this weeks’ topics of corporate bonds and long-term debt. Choose a public corporation and evaluate the bond disclosure notes included with the financial statements. Research this topic using AI (Copilot or Chatgpt.com, for example) and present your findings. Minimum 250 words  At

Write 200–250 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. For this Discussion Board, ple

Write 200–250 words that respond to the following questions with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas.  For this Discussion Board, please complete the following: When multiple employee personalities come into one business unit, there is a possibility of conflict happening.

Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Internal controls are an important

Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Internal controls are an important part of business operations. Internal controls are used to protect assets. Both companies and individuals use internal controls. Companies

Module 1 – SLPFinancial ReportingAssignment OverviewTraditional and Triple Bottom Line Reporting For managers in all departments, analyzing Traditional and Triple Bottom Line Reporting is important fo

Module 1 – SLPFinancial ReportingAssignment OverviewTraditional and Triple Bottom Line Reporting For managers in all departments, analyzing Traditional and Triple Bottom Line Reporting is important for making informed decisions that balance financial performance with social and environmental responsibility. It helps managers align strategies with sustainability goals, drive innovation, and support

Module 1 – CaseFinancial ReportingAssignment OverviewCompare Traditional Reporting vs. TBL Reporting Traditional reporting focuses solely on financial performance, while Triple Bottom Line (TBL) repor

Module 1 – CaseFinancial ReportingAssignment OverviewCompare Traditional Reporting vs. TBL Reporting Traditional reporting focuses solely on financial performance, while Triple Bottom Line (TBL) reporting evaluates financial, social, and environmental impacts, providing a broader view of a company’s sustainability and long-term value creation. In analyzing trends over five years of financial

Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Adjusting entries are used to make

Write 200–250 words that respond to the directions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. Adjusting entries are used to make sure that all revenue and expenses are recorded in the correct period. Last week you learned about four

Write a 1–2 page executive summary, along with an appendix of supporting information, in which you analyze an organization’s financial performance as well as its level of risk for lending and make and

Write a 1–2 page executive summary, along with an appendix of supporting information, in which you analyze an organization’s financial performance as well as its level of risk for lending and make and present a recommendation to help leadership make a loan decision. Collapse AllIntroduction This portfolio work project will

Listed below are several terms and phrases associated with the accounting concepts. Pair each item from List A with the item from List B that is most appropriately associated with it. 1. Expense recog

Listed below are several terms and phrases associated with the accounting concepts. Pair each item from List A with the item from List B that is most appropriately associated with it. 1. Expense recognition 2. Periodicity 3. Historical cost principle 4. Materiality 5. Revenue recognition 6. Going concern assumption 7.

Module 1 – CaseFinancial ReportingAssignment OverviewCompare Traditional Reporting vs. TBL Reporting Traditional reporting focuses solely on financial performance, while Triple Bottom Line (TBL) repor

Module 1 – CaseFinancial ReportingAssignment OverviewCompare Traditional Reporting vs. TBL Reporting Traditional reporting focuses solely on financial performance, while Triple Bottom Line (TBL) reporting evaluates financial, social, and environmental impacts, providing a broader view of a company’s sustainability and long-term value creation. In analyzing trends over five years of financial

Module 1 – SLPFinancial ReportingAssignment OverviewTraditional and Triple Bottom Line Reporting For managers in all departments, analyzing Traditional and Triple Bottom Line Reporting is important fo

Module 1 – SLPFinancial ReportingAssignment OverviewTraditional and Triple Bottom Line Reporting For managers in all departments, analyzing Traditional and Triple Bottom Line Reporting is important for making informed decisions that balance financial performance with social and environmental responsibility. It helps managers align strategies with sustainability goals, drive innovation, and support

Instructions This project consists of two sections. In section 1, you are required to calculate ratios of General Motors Company (hereafter, GM) and Tesla Inc. (hereafter, Tesla) for year ended Dec

Link includes all material to complete https://www.filemail.com/d/rteqdkiyahphpwk Instructions This project consists of two sections. In section 1, you are required to calculate ratios of General Motors Company (hereafter, GM) and Tesla Inc. (hereafter, Tesla) for year ended Dec 31, 2024. Present all your calculations and results in the templates provided

Write 200–250 words that respond to the questions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. You are faced with ethical decision

Write 200–250 words that respond to the questions below with your thoughts, ideas, and comments. Be substantive and clear, and use examples to reinforce your ideas. You are faced with ethical decisions every day. Ethical decisions can be either large or small, personal or related to business. For example, do