Budget Actual Production 20,000 units 17,600 units Direct labour £20,000 £19,540 Variable overhead £4,200 £3,660 Depreciation £10,000 £10,000 10.3 The direct labour variance was A 17,600 (A) B 19,540 (A) C 1,940 (A) D 1,940 (F)

Budget Actual Production 20,000 units 17,600 units Direct labour £20,000 £19,540 Variable overhead £4,200 £3,660 Depreciation £10,000 £10,000 10.3 The direct labour variance was A 17,600 (A) B 19,540 (A) C 1,940 (A) D 1,940 (F)

Name: Budget ActualProduction 20,000 units 17,600 unitsDirect labour £20,000
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Description: Budget ActualProduction 20,000 units 17,600 unitsDirect labour £20,000 £19,540Variable overhead £4,200 £3,660Depreciation £10,000 £10,00010.3 The direct labour variance wasA 17,600 (A)B 19,540 (A)C 1,940 (A)D 1,940 (F)

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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Budgeted production Actual production Materials: Standard price per lb Standard pounds per completed unit Standard hourly labor rate Standard hours allowed per completed unit Actual labor hours worked Actual total labor costs Overhead: Actual and budgeted fixed overhead Standard variable overhead rate Actual pounds purchased and used in production 11,800 Actual price paid for materials $23,000 Labor: Actual variable overhead costs Overhead is applied on standard labor hours. The direct material price variance is: 600F 600U 1,000 units 980 units 80F $2.00 12 $14 per hour 4.5 4,560 $62,928 $27,000 $3.50 per standard labor hour $15,500
Master Actual Budget Sales (units) 800,000 780,000 Sales Revenue 6,000,000.47 5,790,000.59 Variable Costs Blank flash drives 1,800,000.24 1,800,000.44 Direct labor 420,000.55 495,000.94 Variable overhead 780,000.24 717,000.34 Variable marketing & admin 600,000.48 615,000.75 Total Variable Costs 3,600,001.51 3,627,002.47 Contribution Margin 2,399,998.96 2,162,998.12 Fixed Costs Manufacturing overhead 1,164,000.68 1,164,000.68 Marketing 360,000.38 360,000.38 Administrative 195,000.92 195,000.92 Total Fixed Costs 1,719,001.98 1,719,001.98 Profit 680,996.98 443,996.14 Calculate a flexible budget and…
PA 10. LO 8.4 Prepare a flexible budget for overhead based on the following data: Percent of capacity Direct labor hours Units of output Variable overhead Fixed overhead Total overhead 90% 3,600 900 $3,600 $6,000 $9,600 100% 4,000 1,000 $ 4,000 $ 6,000 $10,000 Normal capacity = 100% and overhead is applied based on direct labor hours Standard overhead rate = $10,000/4,000 = $2.50 per direct labor hour Direct materials are $67.50 per unit. Direct labor is $23.50 per hour. 110% 4,400 1,100 $ 4,400 $ 6,000 $10,400
Question A1 The following budgeted information relates to two departments in AB Ltd for the next financial control period: Machine Department Production Overhead Direct Lab. Cost Direct Lab. Hours Direct Hours Mat. Cost £ 55,000 122,000 131,000 80,000 15,000 150,000 2,000 20,000 50,000 10,000 A Required: Using the most appropriate base in each instance identify the production overhead absorption rate for: (a) (i) (ii) Department A Department B Outline clearly two advantages of using predetermined overhead absorption rates. (b)
Q19 Winston Company had two products code named X and Y. The firm had the following budget for August: Product X Product Y Total Sales $ 266,000 $ 450,000 $ 716,000 Variable Costs 192,000 225,000 417,000 Contribution Margin $ 74,000 $ 225,000 $ 299,000 Fixed costs 50,000 108,000 158,000 Operating Income $ 24,000 $ 117,000 $ 141,000 Selling Price per unit $ 100 $ 50 On September 1, the following actual operating results for August were reported: Product X Product Y Total Sales $ 280,000 $ 470,000 $ 750,000 Variable Costs 154,000 188,000 342,000 Contribution Margin $ 126,000 $ 282,000 $ 408,000 Fixed costs 50,000 108,000 158,000 Operating Income $ 76,000 $ 174,000 $ 250,000 Units Sold 3,000 9,000 Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units. The firm's market size variance for the period…
Actual Results $ 185,100 53,000 pounds @ $7.20 per pound 14,700 hours @ $16.60 per hour 7,500 units A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard Quantity and Cost 7 pounds @ $7 per pound 2 DLH @ $16 per DLH 2 DLH @ $12 per DLH Standard Cost Compute the (1) direct materials price variance and (2) direct materials quantity variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Cost per unit" answers to 2 decimal places.) AQ = Actual Quantity SQ = Standard Quantity AP Actual Price SP=Standard Price Actual Cost 6A $ 0 69 0
EXERCISES Exercise 1 Jenner Company developed its annual manufacturing overhead budget for its master budget for 2008 as follows: Expected annual operating capacity Variable overhead costs 120,000 Direct Labor Hours Indirect labon Indirect materials $420,000 90,000 30,000 _540,000 Factory supplies Total variable Fixed overhead costs Depreciation Supervision Property taxes Total fixed 180,000 120,000 96,000 396,000 $936,000 Total costs The relevant range for monthly activity is expected to be between 8,000 and 12,000 direct labor hours . Instructions Prepare a flexible budget for a monthly activity level of 8,000 and 9,000 direct labor hours. Exercise 2 Fagan Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $5.00 Indirect materials Maintenance Utilities 2.50 50 30 Fixed overhead costs per month are: Supervision Insurance $600 200 Property taxes Depreciation 300 900 The…
Exercise 21-7 (Algo) Standard cost per unit, total budgeted cost, and total cost variance LO P2 A manufactured product has the following information for August. Direct materials Direct labor Overhead Units manufactured Total manufacturing costs Standard Quantity and Cost 2 pounds per unit @ $4.00 per pound 0.5 hour per unit @ $28 per DLH $30 per DLH Actual Results 12,600 units $ 460,400 (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for production in August. (3) Compute the total cost variance for August. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the standard cost card showing standard cost per unit. (Round your final answers to 2 decimal places.) Inputs Direct materials Standard quantity or hours pounds x Standard price or rate Standard cost per unit Direct labor Overhead DLH × DLH ×
Peking Palace reported the following: Standard hours per unit 1.5 hrs. Standard rate per hour $18.00 Actual hours used 13,660 Actual rate per hour $17.50 Number of units produced 5,000 Determine the direct labor time variance. a.$107,800 unfavorable b.$107,800 favorable c.$110,880 unfavorable d.$110,880 favorable
P10-1A Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours. Standard Unit Costs Total Actual Costs Direct materials: Standard (4 lb. @ $2.20/lb.) $8.80 Actual (38,000 lb. @ $2.00/lb.) $76,000 Direct labor: Standard (2 hr. @ $11.00/hr.) 22.00 Actual (18,500 hr. @ $11.30/hr.) 209,050 Variable overhead: Standard (2 hr. @ $3.00/hr.) 6.00 Actual 54,900 Total $36.80 $339,950 Required…
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