2 13 14 15 Styles 6 7 8 9 10 11 1 12 113 114 115 1 17 118- Onyx Company prepared a static budget at the beginning of the month. At the end of the month, the company is analyzing actual results versus budget using flexible budget methodology. Data are as follows: Static budget: Sales volume: 1,000 nits Price: $70 per unit hits Variable expense: $32 per unit Operating income: $500 Fixed expenses: $37,500 per month Actual results: Sales volume: 990 units Variable expense: $35 per unit Operating income: $5,610 Price: $74 per unit Fixed expenses: $33,000 per month Based on the above data, how much was the sales volume variance for variable expenses? A) $2,970 U B) $3.960 F C) $320 F D) $380 U

2 13 14 15 Styles 6 7 8 9 10 11 1 12 113 114 115 1 17 118- Onyx Company prepared a static budget at the beginning of the month. At the end of the month, the company is analyzing actual results versus budget using flexible budget methodology. Data are as follows: Static budget: Sales volume: 1,000 nits Price: $70 per unit hits Variable expense: $32 per unit Operating income: $500 Fixed expenses: $37,500 per month Actual results: Sales volume: 990 units Variable expense: $35 per unit Operating income: $5,610 Price: $74 per unit Fixed expenses: $33,000 per month Based on the above data, how much was the sales volume variance for variable expenses? A) $2,970 U B) $3.960 F C) $320 F D) $380 U

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 16E: Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of...

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Digital Solutions Inc. uses flexible budgets that are based on the following data: Prepare a flexible selling and administrative expenses budget for October for sales volumes of 500,000, 750,000, and 1,000,000.
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Performance Report Based on Budgeted and Actual Levels of Production Bowling Company budgeted the following amounts: At the end of the year, Bowling had the following actual costs for production of 3,800 units: Required: 1. Calculate the budgeted amounts for each cost category listed above for the 4,000 budgeted units. 2. Prepare a performance report using a budget based on expected production of 4,000 units. 3. Prepare a performance report using a budget based on the actual level of production of 3,800 units.
Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcoming year. Past trends have indicated the following dollars were spent at three different levels of output: In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as: a. semivariable, fixed, and variable, respectively. b. variable, fixed, and variable, respectively. c. semivariable, semivariable, and semivariable, respectively. d. variable, semivariable, and semivariable, respectively.
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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. At the end of the year, actual sales revenue for Product R and Product S was 3,075,000 and 3,254,000, respectively. The actual price charged for Product R was 25 and for Product S was 20. Only 10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled 540,000 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product?
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Prepare a flexible budgeted income statement for 47,000 units using the following information from a static budget for 45,000 units: