Total expenseNet operating incomeRequired:Calculate the company's revenue and spending variances for June.Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance).Input all amounts as positive values. Do not round intermediate calculations.RevenueExpenses:Fantastic29 CleanersRevenue and Spending VariancesFor the Month Ended June 30Detergents and SoftenersEquipment MaintenanceStaff CompensationUtilitiesEquipment DepreciationFacility Lease28,557$ 23,763Administrative ExpensesTotal expenseNet operating income Fantastic29 Cleapers owns and operates a large automatic laundry facility in Winchester. The company expects to process 8,100 loadsof laundry in June and to collect an average of $6.20 per load processed.The following table provides data concerning the company's costs:Cost perLoad ofLaundry$ 0.60$ 0.15$ 0.40$0.08Detergents and Softeners.Equipment MaintenanceStaff Compensation$ 4,300$ 1,200$ 8,100$ 2,000Administrative Expenses$1,500$ 0.04For example, utilities costs are $1,200 per month plus $0.08 per load of laundry.UtilitiesEquipment DepreciationFacility LeaseThe actual operating results for June are as follows:Fantastic29 CleanersIncome StatementFor the Month Ended June 30Actual loads processedRevenueExpenses:Fixed Costper MonthDetergents and SoftenersEquipment MaintenanceStaff CompensationUtilitiesEquipment Depreciation (Facility LeaseAdministrative ExpensesTotal expenseNet operating income8,200$ 52,3205,3601,4557,9001,0188,1002,2001,72428,557$ 23,763Required:Calculate the company's revenue and spending variances for June.Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zeroundlamal

The variance is the difference between the standard and actual cost data. The revenue and spending…

Answered: Fantastic 29 Cleapers owns and operates…

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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Fairmount Travel Gear produces backpacks and sells them to vendors who sell them under their own label. The cost of one of its backpacks follows. Materials $ 19.60 Labor 13.60 Variable overhead 6.60 Fixed overhead ($3,541,600 per year; 466,000 units per year) 7.60 Total $ 47.40 Riverside Discount Mart, a chain of low-price stores, has asked Fairmount to supply it with 35,000 backpacks for a special promotion Riverside is planning. Riverside has offered to pay Fairmount a unit price of $52 per pack. The regular selling price is $76. The special order would require some modification to the basic model. These modifications would add $5.60 per unit in material cost, $3.10 per unit in labor cost, and $2.10 in variable overhead cost. Although Fairmount has the capacity to produce the 35,000 units without affecting its regular production of 466,000 units, a one-time rental of special testing equipment to meet Riverside’s requirements would be…
Finance
2. Sunshine Company sells custom made surf boards in California. The finance manager has supplied the following data from its activity-based costing system: Overhead Costs Staff Salaries $500,000 Selling and administration overheads 200,000 Total Overhead Costs $700,000 Activity Cost Pool Product design Order Processing Customer Support Activity Measure Number of new designs Number of Customer orders Number of Customers Organization sustaining activity Total Activity for the Year 500 new designs 700 orders 400 customers Not applicable Others Distribution of Resource Consumption across Activities Product Order Customer Other Total Design Processing Support Staff Salaries 40% 30% 20% 10% 100% Selling and 30% 10% 20% 40% 100% administration overheads During the year Sunshine Company completed three individual orders for a new customer, Tarpaper Inc. Two different designs of surfboards were prepared for and sold to this new customer - Orange Tangerine and Blue Waves. Data concerning the…
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Cost of Services Sold Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Direct materials Direct labor Variable overhead Fixed overhead ? $472,500 15,000 18,000 Next year, HHH expects to purchase $25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: Direct Materials Inventory Required: Beginning $4,000 2,600 Ending There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. 1. Prepare a statement of cost of services sold in good form. If an amount is zero, enter "0". Happy Home Helpers, Inc. Statement of Cost of Services Sold For the Coming Year 2. How does this cost of services sold…
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