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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education