ACC 202: FinalProject
PartI Budget VarianceReport Submission
Southern New Hampshire University
Peyton approved and comparison of budget with actual results is going to give us of the details that deal with the operating budget. We will be going over the reasons for the variances and analyzing why there was changes throughout operating budget. As we go over the information will also go over suggestions about how to deal with the disposal and how to treat or revamp the variances. Many different elements going to the operating budget that can cause the budget to change our very well be going over different suggestions to make that financially feasible.
Let’s start out by looking at the variances in the materials that are calculated that gives us the total material cost. The material cost variance sadly is $7,750, which lets us know that there is some inadequacy in the management of the material cost. As we continue to review and analyze the material cost and the different variances we also have to then look at the material price variances. Their total variances came out to zero telling us that overall they are able to effectively make purchases in their department within budget. Whereas when we look at quantity variance it is not complementing their control of their depletion. Which puts them at an adverse of variance of $7,750. So we then have to look at who is controlling the consumption of the materials and who has assumed more than was a budgeted or allowed. Clearly the production manager would be the one to oversee and manage how these things are being budgeted, used, and control. It is vital that the materials are being used in a productive manner if they are not then there will be a waste of material that is not needed and that could’ve gone to get use and production of the product.
Then we want to take a look at the variance in wrote in relation to the labor it is also showing negatively $15,000....