Variance analysis homework problem
1. ; Sally’s Delivery Company reports the following information for 2013:
Actual:
OUR PROCESS
Order
Payment
Writing
Delivery
Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality
|
Output: |
10,000 parcels picked up or delivered |
|
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Fuel required: |
1,200 Gallons |
|
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Cost per gallon: |
$3.05 per gallon |
Standard:
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Fuel allowed: |
0.10 gallon per parcel picked up or delivered |
|
|
Cost per gallon: |
$3.10 per gallon |
REQUIRED:
Calculate the following:
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1) |
Variable overhead variance for fuel |
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2) |
Variable overhead price variance for fuel |
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3) |
Variable overhead efficiency variance for fuel |
|
4) |
Actual fuel costs |
|
5) |
Flexible budget for fuel cost |
