Chapter 7 (Topics 7.4 &7.5) Little Sluggers Inc., manufacturer of aluminum bats, estimates sales of 100,000 units for June 2021. Based on that level of sales, the total costs for the month are projected at: $900,000 300,000 130,000 Direct material costs Direct labor costs Variable overhead Fixed overhead 75,000 Variable selling & administrative 30,000 expenses Fixed selling & administrative expenses 25,000 The sales price per unit is $25. At the end of June, the company reviews their results to see that actual sales in units were 120,000 and total costs for the month were: direct materials of $780,000; direct labor of $480,000; variable overhead of $144,000, fixed overhead of $75,000, variable S&A of S24,000, and fixed S&A of $25,000. Required: 1.) Prepare the company's Actual vs. Flexible Budget Variance Report. Make sure to calculate variances and indicate if variances are favorable (F) or unfavorable (U). 2.) In your opinion, did the company perform well in controlling their costs? Support your opinion.

Chapter 7 (Topics 7.4 &7.5) Little Sluggers Inc., manufacturer of aluminum bats, estimates sales of 100,000 units for June 2021. Based on that level of sales, the total costs for the month are projected at: $900,000 300,000 130,000 Direct material costs Direct labor costs Variable overhead Fixed overhead 75,000 Variable selling & administrative 30,000 expenses Fixed selling & administrative expenses 25,000 The sales price per unit is $25. At the end of June, the company reviews their results to see that actual sales in units were 120,000 and total costs for the month were: direct materials of $780,000; direct labor of $480,000; variable overhead of $144,000, fixed overhead of $75,000, variable S&A of S24,000, and fixed S&A of $25,000. Required: 1.) Prepare the company's Actual vs. Flexible Budget Variance Report. Make sure to calculate variances and indicate if variances are favorable (F) or unfavorable (U). 2.) In your opinion, did the company perform well in controlling their costs? Support your opinion.

Name: Chapter 7 (Topics 7.4 &7.5)Little Sluggers Inc., manufacturer of alum
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Chapter 7 (Topics 7.4 &7.5)Little Sluggers Inc., manufacturer of aluminum bats, estimatessales of 100,000 units for June 2021. Based on that level ofsales, the total costs for the month are projected at:Direct material costs$900,000Direct labor cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In the current year, Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200.Becker Sofa Company's margin of safety (MOS) in sales dollars is:
Coe Aggregates Ltd has scheduled the production and sale of 35,700 tonnes of aggregates for the Month of April, 2021. Given the following information: Selling prices: $23.15 / tonne Tax rate 30% (of net income) Operating costs Direct material cost: $5.75 /tonne Direct labour cost: $8.05/ tonne Variable overhead costs: $1.56/tonne Fixed overhead cost: $115,820 Selling and Administrative costs Variable: $1.27/tonne Fixed: $28,000 1)Calculate the expected monthly net income after tax (profit) for the month of April 2021 2)Calculate the scheduled production tonnage and sale required to attain a desired net income after tax (profit) of $78,500 for the month of April 2021. PLEASE type or print clearly
14) What is operating income using variable costing? A) $52,500 B) $78,750 C) $65,750
The PILLOW Co. manufactures two products, AA and BB. The following are projections for the coming month: AA BBSales P100,000 P150,000Costs: Variable 60,000 40,000 Fixed cost for the period is P45,000. 1. Compute for the total breakeven sales.2. Determine the sales requirement for each product to breakeven.
need answer with brief explanation
Sarasota, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2020 are projected as follows. Quarter Units First 64,000 Second 120,000 Third 440,000 Fourth 96,000 Annual total 720,000 Sarasota incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.35 per unit. Sarasota will incur fixed manufacturing costs of $576,000 and fixed nonmanufacturing costs of $864,000. Sarasota will sell its product for $4 per unit. 1. Determine the amount of net income Sarasota will report in each of the four quarters of 2020, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to 0 decimal places) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net income (Integral Approach) Net income (Discrete Approach)…
Please help me. Thankyou.
21. Empresas Tu Pan produces and sells 1,000,000 pounds of bread monthly. Its variable costs are $ 0.50, this includes $ 0.10 of commissions to sellers. Other variable administrative costs total $ 0.15. Your fixed costs per unit produced are $ 0.25 per month and $ 50,000 for administrative expenses per month. The annual fixed cost of this company will be:
ABC Company sells a product for $100 per unit. Variable costs are $60 per unit, and fixed costs are $3,000 per month. The company expects to sell $600 units in September using the contribution margin format. In the income statement for September using the Contribution Margin Format, the Contribution Margin is and the Operating Income is_ O $20,000 and $22,000 O $22,000 and $19,000 O $24,000 and $21,000 O $23,000 and $20,000 O $21,000 and $18,000
Crane Industries produces and sells a cell phone-operated home security control systems. Information regarding the costs and sales during May 2022 is as follows. Unit selling price $45.00 Unit variable costs $25.20 Total monthly fixed costs $124,000 Units sold 8,400 Prepare a CVP income statement for Crane Industries for the month of May. (Round per unit answers to 2 decimal places, e.g. 15.25.)
Lamar has the following data: Selling price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 165,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 135,000 per month How many units must Lamar produce and sell in order to break-even?
Steel Metals Ltd manufactures and sells iron rods that is used in the construction of roads. The product is manufactured and sold in 20' long rods. The product is generally produced and sold to match customer demand, and there is not a significant amount of finished goods inventory at any point in time. Summary information for 2020 is as follows: Sales were $20,000,000, consisting of 5,000,000 rods. Total variable costs were $11,000,000. Total fixed costs were $8,000,000. Net income was $1,000,000. The general economic conditions appear to be deteriorating heading into 2021, and there is some concern about a reduction in sales volume. The following questions should each be answered independent of one another. Required: a) What is the company's break-even point in 20' long rods? b) Can the company sustain a 30% reduction in total volume, and remain profitable? c) The company's sole shareholder, Pant Sharma, generally lives off dividends paid by the business. The business typically…