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Assume Pierre Computer Company has created a standard cost card for the PCC model tablet computer, with overhead allocated based on direct labor hours: (Click the icon to view the standard costs.) During the month of September, Pierre Computer Company incurred the following costs while manufacturing 7 PCC model tablets: (Click the icon to view the actual costs.) Read the requirements. Requirement 1. Prepare a flexible budget for September for 500, 600, and 700 PCC ma Units Sales Revenue Variable Costs: Direct Materials Direct Labor Variable Overhead Total Variable Costs Contribution Margin Fixed Costs Operating Income Pierre Computer Company Flexible Budget For the Month Ended September 30 Budget Amounts per Unit 500 600 700 Requirements 1. Prepare a flexible budget for September for 500, 600, and 700 PCC model tablets. The tablet has a standard sales price of $590. List variable costs separately. 2. Using 600 PCC model tablets for the static budget, prepare a flexible budget performance report for September. Total sales revenue for the month was $427,000. The company sold 700 tablets. 3. What insights can the management of Pierre Computer Company draw from the performance report? Standard Costs Direct materials Direct labor Variable overhead Fixed overhead Print Done $320 per tablet 4 hours per tablet at $21 per hour 4 hours per tablet at $12 per hour $42,000 per month Print Done - X X Actual Costs Direct materials Direct labor $ 231,700 59,920 Variable overhead 36,400 Fixed overhead 44,050 Print Done -X Clear all Check answer

Assume Pierre Computer Company has created a standard cost card for the PCC model tablet computer, with overhead allocated based on direct labor hours: (Click the icon to view the standard costs.) During the month of September, Pierre Computer Company incurred the following costs while manufacturing 7 PCC model tablets: (Click the icon to view the actual costs.) Read the requirements. Requirement 1. Prepare a flexible budget for September for 500, 600, and 700 PCC ma Units Sales Revenue Variable Costs: Direct Materials Direct Labor Variable Overhead Total Variable Costs Contribution Margin Fixed Costs Operating Income Pierre Computer Company Flexible Budget For the Month Ended September 30 Budget Amounts per Unit 500 600 700 Requirements 1. Prepare a flexible budget for September for 500, 600, and 700 PCC model tablets. The tablet has a standard sales price of $590. List variable costs separately. 2. Using 600 PCC model tablets for the static budget, prepare a flexible budget performance report for September. Total sales revenue for the month was $427,000. The company sold 700 tablets. 3. What insights can the management of Pierre Computer Company draw from the performance report? Standard Costs Direct materials Direct labor Variable overhead Fixed overhead Print Done $320 per tablet 4 hours per tablet at $21 per hour 4 hours per tablet at $12 per hour $42,000 per month Print Done - X X Actual Costs Direct materials Direct labor $ 231,700 59,920 Variable overhead 36,400 Fixed overhead 44,050 Print Done -X Clear all Check answer

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Assume Pierre Computer Company has created a standard cost card for the PCC model tablet computer, with overhead allocated based on direct labor hours: (Click the icon to view the standard costs.) During the month of September, Pierre Computer Company incurred the following costs while manufacturing 7 PCC model tablets: (Click the icon to view the actual costs.) Read the requirements. Requirement 1. Prepare a flexible budget for September for 500, 600, and 700 PCC ma Units Sales Revenue Variable Costs: Direct Materials Direct Labor Variable Overhead Total Variable Costs Contribution Margin Fixed Costs Operating Income Pierre Computer Company Flexible Budget For the Month Ended September 30 Budget Amounts per Unit 500 600 700 Requirements 1. Prepare a flexible budget for September for 500, 600, and 700 PCC model tablets. The tablet has a standard sales price of $590. List variable costs separately. 2. Using 600 PCC model tablets for the static budget, prepare a flexible budget performance report for September. Total sales revenue for the month was $427,000. The company sold 700 tablets. 3. What insights can the management of Pierre Computer Company draw from the performance report? Standard Costs Direct materials Direct labor Variable overhead Fixed overhead Print Done $320 per tablet 4 hours per tablet at $21 per hour 4 hours per tablet at $12 per hour $42,000 per month Print Done - X X Actual Costs Direct materials Direct labor $ 231,700 59,920 Variable overhead 36,400 Fixed overhead 44,050 Print Done -X Clear all Check answer
Transcribed Image Text:Assume Pierre Computer Company has created a standard cost card for the PCC model tablet computer, with overhead allocated based on direct labor hours: (Click the icon to view the standard costs.) During the month of September, Pierre Computer Company incurred the following costs while manufacturing 7 PCC model tablets: (Click the icon to view the actual costs.) Read the requirements. Requirement 1. Prepare a flexible budget for September for 500, 600, and 700 PCC ma Units Sales Revenue Variable Costs: Direct Materials Direct Labor Variable Overhead Total Variable Costs Contribution Margin Fixed Costs Operating Income Pierre Computer Company Flexible Budget For the Month Ended September 30 Budget Amounts per Unit 500 600 700 Requirements 1. Prepare a flexible budget for September for 500, 600, and 700 PCC model tablets. The tablet has a standard sales price of $590. List variable costs separately. 2. Using 600 PCC model tablets for the static budget, prepare a flexible budget performance report for September. Total sales revenue for the month was $427,000. The company sold 700 tablets. 3. What insights can the management of Pierre Computer Company draw from the performance report? Standard Costs Direct materials Direct labor Variable overhead Fixed overhead Print Done $320 per tablet 4 hours per tablet at $21 per hour 4 hours per tablet at $12 per hour $42,000 per month Print Done - X X Actual Costs Direct materials Direct labor $ 231,700 59,920 Variable overhead 36,400 Fixed overhead 44,050 Print Done -X Clear all Check answer
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