Adams Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production department's static budget and actual results for Year 3 follow. Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing cost Required A Required a. Convert the static budget into a flexible budget. b. Calculate the variances. Static Budget 37,000 kits Production in units Direct materials Direct labor $ 296,000 Required B Convert the static budget into a flexible budget. Note: Do not round intermediate calculations. Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs 259,000 55,500 610,500 214,000 $ 824,500 Complete this question by entering your answers in the tabs below. $ Flexible Budget 38,400 Kits 0 0 Actual Results 38,400 kits < Required A $ 344,200 263,300 60,400 667,900 208, 200 $ 876,100 Required B >

Adams Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production department's static budget and actual results for Year 3 follow. Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing cost Required A Required a. Convert the static budget into a flexible budget. b. Calculate the variances. Static Budget 37,000 kits Production in units Direct materials Direct labor $ 296,000 Required B Convert the static budget into a flexible budget. Note: Do not round intermediate calculations. Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs 259,000 55,500 610,500 214,000 $ 824,500 Complete this question by entering your answers in the tabs below. $ Flexible Budget 38,400 Kits 0 0 Actual Results 38,400 kits < Required A $ 344,200 263,300 60,400 667,900 208, 200 $ 876,100 Required B >

Name: Required A Required BCalculate the variances.Note: Indicate the effec
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Description: Required A Required BCalculate the variances.Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance).Direct materialsDirect laborVariable manufacturing overheadTot

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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Smith manufactures coffee mugs that it sells to other companies for customizing with their own logos. Smith prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a coffee mug is based on static budget volume of 59,900 coffee muas per month: Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. 3. 4. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Journalize the actual manufacturing overhead and the allocated manufacturing overhead. Journalize the movement of all production costs from Work-in-Process Inventory. Journalize the adjusting of the Manufacturing Overhead account. 5. Smith intentionally hired more highly skilled workers during July. How did this decision affect…
Manufacturing overhead, variance analysis. The Rotations Corporation is a manufacturer of centrifuges. Fixed and variable manufacturing overheads are allocated to each centrifuge using budgeted assembly-hours. Budgeted assembly time is 2 hours per unit. The following table shows the budgeted amounts and actual results related to overhead for June 2017.
Zeke's Bikes uses a standard cost system and provides the following information: Standards: Static budget variable overhead $5,040.00. Static budget fixed overhead $20,900.00. Static budget direct labor hours 400 hours. Static budget number of units 25,600 units. Static budget direct labor hours 0.035 hours per unit. Actual: Number of units produced 25,000. Actual variable overhead $5,220.00 Actual fixed overhead $23,600.00. Actual direct labor hours 520. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the variable and fixed overhead allocation rates.
Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Direct Material Direct Labor Variable Overhead Fixed Overhead Total Manufacturing Costs Actual Costs 385 units $ $ 17,100 27,800 9,850 13,100 67,850 Spending Variance Flexible Budget 385 units Volume Variance Master Budget 200 units $ $ 15,600 23,600 9,600 11,800 60,600
Selected data for March for Irvington, Incorporated follows. The variable material sales activity variance is $23,040 U. Flexible budget based on actual sales of 9,958 units: Revenue Materials Labor Variable overhead Fixed costs (manufacturing and administrative) Required: a. How many units were budgeted for March in the master budget? b. Recreate the master budget for March. Complete this question by entering your answers in the tabs below. Required A Required B How many units were budgeted for March in the master budget? Budgeted sales units $ 300,440 99,840 78,000 50,960 41,120
Marigold Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs. A separate graph based on direct labor hours is used for each department. The graphs show the following. 1. 2. (a) $ $ At zero direct labor hours, the total budgeted cost line and the fixed-cost line intersect the vertical axis at $47,000 in the Fabricating Department and $37,600 in the Assembling Department. State the total budgeted cost equation for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.) (b). At normal capacity of 47,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $159,800 in the Fabricating Department and $112,800 in the Assembling Department. Your answer is correct. 47,000 total Fixed Costs 37,600 total Fixed Costs eTextbook and Media The total budgeted cost Fabricating Department + Variable Costs…
Zeke's Bikes uses a standard cost system and provides the following information: Standards: Static budget variable overhead $5,110.00. Static budget fixed overhead $20,400.00. Static budget direct labor hours 360 hours. Static budget number of units 25,100 units. Static budget direct labor hours 0.035 hours per unit. Actual: Number of units produced 23,000. Actual variable overhead $5,080.00 Actual fixed overhead $23,600.00. Actual direct labor hours 520. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).
White Mountain Sled Company manufactures children's snow sleds. The company's performance report for November is as follows. Actual Budget Sleds sold 5,000 6,000 Sales $240,000 $300,000 Variable costs 150,000 180,000 Contribution margin $ 90,000 84,000 $120,000 Fixed costs 80,000 Operating income $ 6,000 $ 40,000 The company uses sales variance analysis to explain the difference between budgeted and actual sales revenue. Required: Compute the following variances and indicate whether each is favorable or unfavorable. (Select "None" for no effect (i.e., zero variance).) 1. November sales-price variance 2. November sales-volume variance
Dickerson Company, which uses an activity-based costing system, produces travel trailers and boat trailers. The company allocates batch setup costs to the two products using the following basic data: Travel trailers Boat trailers Budgeted units to be produced 2,250 2,900 Budgeted number of setups 340 560 Budgeted number of direct labor hours per unit 40 60 Total budgeted setup costs for the year are $158,400. If the setup costs are allocated using number of setups, how much of the total setup costs would be allocated to boat trailers? Select one: a. $104,400 b. $59,840 c. $282.86 d. $158,400 e. $98,560
Gleason Guitars produces acoustic guitars. The table below contains budget and actual information for the month of June: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Actual Costs 525 units Spending Variance Flexible Budget 525 units Volume Variance Master Budget 200 units Direct Material 18,500 17,000 Direct Labor 29,200 - 25,000 Variable Overhead 11,250 11,000 Fixed Overhead 14,500 12,500 Total Manufacturing Costs 73,450 65,500
Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the month of January. Direct labor hours Variable factory overhead Fixed factory overhead Total factory overhead per DLH 24,000 $48,000 $108,000 $6.50 Actual data for January were as follows: 22,000 Total factory overhead $147,000 Direct labor hours worked Standard DLH allowed for the capacity attained 21,000 Using the two-way analysis of overhead variances, what is the budget (controllable) variance for January? A. $3,000. B. $13,500 unfavorable. C. $9,000 favorable. D. $10,500 unfavorable.
Thornton Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production department’s static budget and actual results for Year 3 follow: Static Budget Actual Results Production in units 22,000 kits 24,500 kits Direct materials $ 165,000 $ 221,250 Direct labor 143,000 153,350 Variable manufacturing overhead 33,000 39,450 Total variable costs 341,000 414,050 Fixed manufacturing overhead 208,000 202,500 Total manufacturing cost $ 549,000 $ 616,550 Required a. Convert the static budget into a flexible budget. b. Calculate the variances.