Added on - 16 Sep 2019

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PEYTON APPROVED BUDGET VARIANCE REPORT(An)OperatingBudgetbudgetis a detailed statement which shows estimatedIncomesincomesandExpensesexpensesof an organization based on the forecasted sales revenueduring a given period. It generally consists of various budgets such as Sales Budget,Purchase Budget, and Production Budgetsetc. A variance analysis is a measurement of(the)variance between actual cost and the standard cost. ThusVariancea varianceanalysis can be used to review the performance of an organization.A divergence from the predetermined rates, expressed ultimately in money value,generally used in standard costing and budgetary control system[This is a sentencefragment.]. Variances which are profitable for the organization are known asFavorablefavorablevariance(s)whereas variances which increase the cost for the organization areknown asUnfavorableunfavorablevariance(s). Material cost variance is the differencebetween the standard material cost for actual output and(the)actual cost incurred.Material efficiency variance is the differencebetweeninmaterial costs due to the usageof material. Labor cost variance is the difference between the standard labor cost foractual hours worked and(the)actual wages paid. Labor efficiency variance is thedifference between actual hours worked by the workers for production of units and thestandard hours required to produce the actual quantity.Thevariance(s)may arise due totheinaccurate budgeting, Changes in the economicrealities, andEmploymentemploymenttheft[This is a sentence fragment.]. Theinaccurate budgeting means due to(a)bad guess ofIncomeincomeand expenses of thefuture periods[It means what?]. The change in economic realities refers to the companyis experiencedexperiencingan increase in cost or decrease in revenue due to change(s)inthe market conditions. TheEmploymentemploymenttheft refers to employeesperpetuatesperpetuatingtheft or fraud which is difficult to detect and becomes the reasonfor the variancefor the performance of the company.(An)OperatingBudgetbudgetis essential for an organization for the preparation ofMastermasterbudgets. Variance analysis helps managementin the determination ofdetermine (the)reason for these variance and(the required)corrective actionthereon.Good start! However, you need to provide more detail on the specific variances youcalculated for Peyton Approved. What were the cost/price, efficiency, and totalvariances for labor and materials? You also need to discuss the potential causes ofthose specific variances.
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