.Calculate the efficiency variance for variable setup overhead costs X Industries, Inc., produces air purifiers. X, Inc., produces the air purifiers in batches. To manufacture a batch of the purifiers, X, Inc., must set up the machines and assembly line tooling. Setup costs are batch-level costs because they are associated with batches rather than individual units of products. A separate Setup Department is responsible for setting up machines and tooling for different models of the air purifiers. Setup overhead costs consist of some costs that are variable and some costs that are fixed with respect to the number of setup-hours. The following information pertains to June 2008: Budget Actual Amounts Amounts 10,000 Units produced and sold Batch size (number of units per batch) Setup-hours per batch Variable overhead cost per setup-hour Total fixed setup overhead costs 9,000 400 375 6 5.5 $50 $52 $18,000 $17,750 $114 favorable $264 unfavorable $264 favorable $150 favorable $250 favorable O

.Calculate the efficiency variance for variable setup overhead costs X Industries, Inc., produces air purifiers. X, Inc., produces the air purifiers in batches. To manufacture a batch of the purifiers, X, Inc., must set up the machines and assembly line tooling. Setup costs are batch-level costs because they are associated with batches rather than individual units of products. A separate Setup Department is responsible for setting up machines and tooling for different models of the air purifiers. Setup overhead costs consist of some costs that are variable and some costs that are fixed with respect to the number of setup-hours. The following information pertains to June 2008: Budget Actual Amounts Amounts 10,000 Units produced and sold Batch size (number of units per batch) Setup-hours per batch Variable overhead cost per setup-hour Total fixed setup overhead costs 9,000 400 375 6 5.5 $50 $52 $18,000 $17,750 $114 favorable $264 unfavorable $264 favorable $150 favorable $250 favorable O

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Description: .Calculate the efficiency variance for variable setup overhead costsX Industries, Inc., produces air purifiers. X, Inc., produces the air purifiers in batches. Tomanufacture a batch of the purifiers, X, Inc., must set up the machines and assembly li

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Nobel Ltd adopts process costing rather than job costing. Which of the following statement could explain why? a. Nobel Ltd produces units according to customer specifications. b. Nobel Ltd wants to track the cost of material, labour and overhead to specific customers. c. Nobel Ltd wants to assign overhead using machine hours as the allocation base. d. Nobel Ltd manufactures virtually identical products using a series of continuous processes.
For the weighted average method of process costing, the: total cost of completed units equals the total cost of ending work in process. unit cost of materials equals the unit cost for conversion costs. equivalent units for conversion costs are higher than the equivalent units for materials. flow of physical units produces the same results as the computations for equivalent units. None of the above is true.
When a company implements activity-based costing, manufacturing overhead cost is often shifted from low volume products to high volume products, with a higher unit cost resulting for the high volume products. Please explain (True or False) thoroughly.
The information and data in Tables 1, 2, and 3 will be used to determine cost drivers and calculate overheads. Table 1 (Product information) X Y Z High volume Medium volume Low volume Large batches Medium batches Low batches Few purchaseOrders placed Medium purchaseOrders placed Many purchaseOrders placed Few customerOrders placed Medium customerOrders placed Many customerOrders placed Table 2 (Product Information) X Y Z Total Typical batch size 2000 600 325 No. of production runs 25 50 50 125 No. of inspections 25 50 50 125 Purchase orders placed 25 100 200 325 Customer orders received 10 100 200 310 Table 3 Analysis of indirect labour K'000 K'000 Machining:…
Mary Smith is the controller for ABC Printing Service. Mary has been putting in a lot of overtime; therefore, she has been allowed hire an assistant. Mary’s assistant is a bright, high school graduate, but he has never taken an accounting class. Mary is trying to decide which accounting activities could be delegated to her assistant. Mary is willing to give the assistant a few simple instructions on how to complete each task, but she doesn’t have time to teach the assistant to be an accountant. For each task listed, state whether Mary should continue to do the work or delegate the task to her assistant. Please explain each answer. List the account balances from the general ledger in the Trial Balance columns of the end-of-period spreadsheet. Add the Debit and Credit columns of the trial balance. Make the adjusting entries on the spreadsheet. Complete the spreadsheet. Type the formal financial statements using the data from the Income Statement and Balance Sheet columns of the…
As you learned in the previous chapters, Current Designs has two main product lines-composite kayaks, which are handmade and very labor-intensive, and rotomolded kayaks, which require less labor but employ more expensive equipment. Current Designs' controller, Diane Buswell, is now evaluating several different methods of assigning overhead to these products. It is important to ensure that costs are appropriately assigned to the company's products. At the same time, the system that is used must not be so complex that its costs are greater than its benefits. Diane has decided to use the following activities and costs to evaluate the methods of assigning overhead. Activities Cost Designing new models Creating and testing prototypes $120,000 144,000 Creating molds for kayaks 208,000 Operating oven for the rotomolded kayaks 38,000 Operating the vacuum line for the composite kayaks 27,000 192,000 Supervising production employees Curing time (the time that is needed for the chemical processes…
Describe some costs and benefits of using multiple overhead rates instead of a plantwide overhead rate.
Process costing is normally used when: Select one: a. large numbers of different products are manufactured. O b. the fixed costs of manufacturing exceed the variable cost of manufacturing. O c. large numbers of nearly identical products are manufactured. O d. small numbers of nearly identical products are manufactured.
Classify the different costs as unit, batch, product, or facility. Answers (unit, batch, product, or facility) may be used more than once and some answers may not be used at all. Research and development Electricity Building security costs Quality control Design costs
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