Exercise 4-32The owner of Jessica's Baby Store must decide on thenumber of babies' dresses to order for the coming season. Oneorder must be placed for the entire season. The normal sales priceis P120 per dress; however, unsold dresses at season's end must besold at half the price. The following data are available:Unit SalesCM at Regular Unit Loss atHalf PriceOrderQuantityPriceUnit CostSales Price100P120P100P20P40200120952535300120903030400120853525Over the past 20 seasons, Jessica has experienced thefollowing sales:Quantity Sold100Frequency2003008.400The historical sales have occurred at random (i.e., theyhave exhibited no cycles or trends and the future is expected to besimilar to the past.REQUIRED:1. Prepare a pay-off table representing the expected CM of eachof the four possible strategies, assuming that only the fourquantities listed are ever sold.2. Compute the cost of the perfect information. Exercise 4-31The Charito Company is planning an overhead budget cost budget forthe next month, July, 2021. Past cost studies indicate that costs have followedbehavior patterns as given below:Variable RatePer HourIndirect materialsPO.90Heat, light & power1.20Repairs & maintenanceLubrication4.600.50In addition, management has estimated fixed factory overhead asfollows:SupervisionP44,00036,00014,500Indirect laborHeat, light & power17,200Repairs & maintenanceTaxes & insurance9,000TotalP129,000During the next month, the company plans to manufacture 150,000 unitsof product. Products are produced at the rate of 6 units per hour. Normal plantcapacity is 30,000 hours.REQUIRED:1. Prepare the factory overhead budget for July, 2021.2. Determine the unused normal capacity, if any.

Manufacturing overhead refers to the indirect costs incurred in the production process. It is also…

Exercise 4-31 The Charito Company is planning an overhead budget cost budget for the next month, July, 2021. Past cost studies indicate that costs have followed behavior patterns as given below: Variable Rate Per Hour Indirect materials PO.90 Heat, light & power Repairs & maintenance 1.20 4.60 Lubrication 0.50 In addition, management has estimated fixed factory overhead as follows: Supervision P44,000 Indirect labor 36,000 14,500 17,200 Heat, light & power Repairs & maintenance Taxes & insurance 9,000 Total P129,000 During the next month, the company plans to manufacture 150,000 units of product. Products are produced at the rate of 6 units per hour. Normal plant capacity is 30,000 hours. REQUIRED: 1. Prepare the factory overhead budget for July, 2021. 2. Determine the unused normal capacity, if any.

Exercise 4-31 The Charito Company is planning an overhead budget cost budget for the next month, July, 2021. Past cost studies indicate that costs have followed behavior patterns as given below: Variable Rate Per Hour Indirect materials PO.90 Heat, light & power Repairs & maintenance 1.20 4.60 Lubrication 0.50 In addition, management has estimated fixed factory overhead as follows: Supervision P44,000 Indirect labor 36,000 14,500 17,200 Heat, light & power Repairs & maintenance Taxes & insurance 9,000 Total P129,000 During the next month, the company plans to manufacture 150,000 units of product. Products are produced at the rate of 6 units per hour. Normal plant capacity is 30,000 hours. REQUIRED: 1. Prepare the factory overhead budget for July, 2021. 2. Determine the unused normal capacity, if any.

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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Exercise 17-9 (Algo) Allocating overhead using plantwide rate and departmental rates LO P1, P2 Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Fabricating Overhead cost $ 1,280,000 Direct labor hours Machine hours 182,500 DLH 80,000 MH Assembly $ 420,000 30,000 DLH 73,500 MH Laval reports the following for one of its products, a desk lamp. Number of Desk lamp Units 5,000 Required: Fabricating Department Assembly Department Direct Labor Hours Machine Hours per Direct Labor Hours Machine Hours per per Unit per Unit Unit 5 DLH per unit 4 MH per unit Unit 3 DLH per unit 0.5 MH per unit 1. Determine the plantwide overhead rate using 212,500 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. 3. Compute departmental overhead rates based on machine hours in the Fabricating department and…
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Question 1 QVC Company produces kitchen cabinets at its factory. The following relates to the production of the kitchen cabinets for the period ending December 2020. Production (units) Sales (units) Fixed production cost Fixed Selling overhead Budgeted Actual 75,000 80,000 72,500 77,500 $750,000 $781,250 $562,500 $562,500 The fixed production overhead was absorbed at a pre- determined rate per unit produced. Each kitchen cabinet was sold for $450. Required: At the beginning of January 2020, there was opening stock of 4,375 units valued at $262,500; this includes fixed production overhead of $43,750. c) Prepare the reconciliation statement as at December 31, 2020.
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Question 3 MCC Company produces one product, Motorbikes. Because of wide fluctuations in the demand for Motorbikes, the assembly department has significant variations in its monthly production levels The annual master manufacturing overhead budget is based on 300,000 direct labour hours. In July, 27,500 labour hours were worked. The master manufacturing overhead budget for the year and the actual overhead costs incurred in July are as follows: Overhead Costs Master Budget (annual) Actual in July Variable Indirect labour 330,000 $29,000 Indirect materials 180,000 14,000 Utilities 150,000 13,900 Maintenance 90,000 8,350 Fixed Supervision 150,000 12,500 Depreciation 96,000 8,000 Insurance and taxes 60,000 5,000 Total $1,056,000 $90,750 Required: Prepare a monthly flexible overhead budget for the year…
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Question 5 Emma Co manufactures electric motors. The company expects to sell 440 units in June and 585 units in July. Beginning and ending finished goods for June is expected to be 40 and 95 units, respectively. July's ending finished goods is expected to be 125 units. The company's variable manufacturing overhead is $4 per unit produced and its fixed manufacturing overhead is $6220 per month. Emma's manufacturing overhead budget for July $ tiap. 5.0
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Requirements 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Explain why the variances are favorable or unfavorable. 2. Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, foxed overhead cost variance, and foxed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fioxed overhead (FOH) variances, and then compute each variance amount. Actual overhead - (Actual hours x Standard price) (Actual hours - Standard hours allowed) x Standard price Actual overhead - Budgeted overhead Budgeted overhead - Allocated overhead = VOH cost variance %3D Data Table = VOH efficiency variance %3D |= FOH cost variance = FOH volume variance
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