Week 4 Assignment from Textbook: Chapter 23 & 24
Esther Tate
ACC/400
July 26, 2015
Theresa Pekron

Brief Exercise 23.6 – Elements of the Budget
Identify the budgets in Column B from which dollar amounts are transferred directly in constructing the budgets listed in Column A:

1. Budgeted income statement
a. Direct materials budget
2. Budgeted balance sheet
b. Cost of goods sold budget
3. Cash flow budget
c. Production budget
4. Cost of goods sold budget
d. Payables budget
5. Production budget
e. Sales budget
6.
f. Budgeted income statement

1. Budgeted income statement – e. Sales budget
2. Budgeted balance sheet – d. Payables budget
3. Cash flow budget – a. Direct materials budget
4. Cost of goods sold budget – b. Cost …show more content…

$4
Standard quantity of materials per amalgam florostat..……………… 5 grams
Actual materials purchased and used in production……………… 6,000 grams
Actual amalgam florostats produced during the months…………… 1,000 units
Actual cost of materials purchased………………...…………………… $18,000
Normal monthly output………………………………………………….. 900 units

a. Determine Gumchara’s materials price variance.

Materials Price Variance = Actual Quantity Used * (Standard Price – Actual price)
= 6,000 grams * ($4 – ($18,000/6,000) = 6,000 grams * ($4 - $3)
= $6,000 Favorable

b. Determine Gumchara’s materials quantity variance.

Materials Quantity Variance = Standard Price * (Standard Quantity – Actual Quantity)
= $4 per gram * (1,000 units * 5 grams/unit) – 5,000 grams
= $4 per gram * (5,000 – 6,000) = $4 per gram * (-1,000
= $4,000 Unfavorable

c. Will Gumchara’s overhead volume variance be