Cullumber Company expects to produce 6,500 units of product IOA during the current year. Budgeted variable manufacturing costs per unit are direct materials $6, direct labour $13, and overhead $17. Monthly budgeted fixed manufacturing overhead costs are $7,800 for depreciation and $3,500 for supervision. In the current month, Cullumber produced 7,000 units and incurred the following costs: direct materials $39,312, direct labour $85,500, variable overhead $129,506, depreciation $7,800, and supervision $3,773. Prepare a static budget report. (List variable costs before fixed costs) Were costs controlled? Budget Cullumber Company Static Budget Report Actual Differe Favour Unfavou Neither Favourable

Cullumber Company expects to produce 6,500 units of product IOA during the current year. Budgeted variable manufacturing costs per unit are direct materials $6, direct labour $13, and overhead $17. Monthly budgeted fixed manufacturing overhead costs are $7,800 for depreciation and $3,500 for supervision. In the current month, Cullumber produced 7,000 units and incurred the following costs: direct materials $39,312, direct labour $85,500, variable overhead $129,506, depreciation $7,800, and supervision $3,773. Prepare a static budget report. (List variable costs before fixed costs) Were costs controlled? Budget Cullumber Company Static Budget Report Actual Differe Favour Unfavou Neither Favourable

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 15P

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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.
Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.
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Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
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