Connor Company's budgeted costs for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per computer case are $40, $8 and $12 respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct Materials $364,000 $400,000 $36,000 F Direct Manufacturing Labor 78,000 80,000 2,000 F Direct Marketing (distribution) Labor 110,000 120,000 10,000 F Actual output was 8,800 cases. Assume all three cost items are variable. Is the president's pleasure justified? Prepare a revised flexible budget for 8,000, 8,800 and 10,000 cases using the framework posted on Canvas. Fixed Costs are budgeted to be $100,000 and actual Fixed Costs are $103,000. Resource Per Unit costs 8,000 8,800 10,000 Actual Costs

Connor Company's budgeted costs for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per computer case are $40, $8 and $12 respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct Materials $364,000 $400,000 $36,000 F Direct Manufacturing Labor 78,000 80,000 2,000 F Direct Marketing (distribution) Labor 110,000 120,000 10,000 F Actual output was 8,800 cases. Assume all three cost items are variable. Is the president's pleasure justified? Prepare a revised flexible budget for 8,000, 8,800 and 10,000 cases using the framework posted on Canvas. Fixed Costs are budgeted to be $100,000 and actual Fixed Costs are $103,000. Resource Per Unit costs 8,000 8,800 10,000 Actual Costs

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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Marigold Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs. A separate graph based on direct labor hours is used for each department. The graphs show the following. 1. 2. (a) $ $ At zero direct labor hours, the total budgeted cost line and the fixed-cost line intersect the vertical axis at $47,000 in the Fabricating Department and $37,600 in the Assembling Department. State the total budgeted cost equation for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.) (b). At normal capacity of 47,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $159,800 in the Fabricating Department and $112,800 in the Assembling Department. Your answer is correct. 47,000 total Fixed Costs 37,600 total Fixed Costs eTextbook and Media The total budgeted cost Fabricating Department + Variable Costs…
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Use this information for Stringer Company to answer the question that follow. The following data are given for Stringer Company: Budgeted production 930 units Actual production 1,013 units Materials: Standard price per ounce $1.85 Standard ounces per completed unit 10 Actual ounces purchased and used in production 10,434 Actual price paid for materials $21,390 Labor: Standard hourly labor rate $14.60 per hour Standard hours allowed per completed unit 4.7 Actual labor hours worked 5,216.95 Actual total labor costs $79,558 Overhead: Actual and budgeted fixed overhead $1,015,000 Standard variable overhead rate $25.00 per standard labor hour Actual variable overhead costs $146,075 Overhead is applied on standard labor hours. Round your intermediate calculations and final answer to the nearest cent. The direct materials price variance is a.$5,217.00 favorable b.$2,086.80 favorable c.$2,086.80…
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