Comprehensive variance analysis review. Blauwvogel is a single-product company that produces and sells product P. For the year 2014, the following budgeted absorption costing manufacturing costs per product are: 2 kg at $3- Material Variable costs Fixed costs Production: 84,000 units The variable selling costs are $2 per unit, and the fixed selling costs are $400,000 per year. The normal production and sales are 100,000 units per year. The budgeted production for 2014 is 90,000 units, the budgeted sales for 2014 are 80,000 units. During 2014, the selling price will be $25 per unit. On Dec. 31, 2014, the following actual data are given: ■ Sales: 82,000 units . Selling price: $24 per unit Purchase price of material: $3.50 per kg $6 $2 $6 $14 . Use of material: 160,000 kg Variable costs of production department: $2 per unit Fixed costs of production department: $580.000 Variable costs of selling department: $2.50 per unit Fixed selling costs: $400,000

Comprehensive variance analysis review. Blauwvogel is a single-product company that produces and sells product P. For the year 2014, the following budgeted absorption costing manufacturing costs per product are: 2 kg at $3- Material Variable costs Fixed costs Production: 84,000 units The variable selling costs are $2 per unit, and the fixed selling costs are $400,000 per year. The normal production and sales are 100,000 units per year. The budgeted production for 2014 is 90,000 units, the budgeted sales for 2014 are 80,000 units. During 2014, the selling price will be $25 per unit. On Dec. 31, 2014, the following actual data are given: ■ Sales: 82,000 units . Selling price: $24 per unit Purchase price of material: $3.50 per kg $6 $2 $6 $14 . Use of material: 160,000 kg Variable costs of production department: $2 per unit Fixed costs of production department: $580.000 Variable costs of selling department: $2.50 per unit Fixed selling costs: $400,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.4P: Direct materials and direct labor variance analysis Faucet Industries Inc. manufactures faucets in a...

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