Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when itreceives orders and, therefore, has no inventories. The following information is available for the current month:Sales revenueLessVariable costsMaterialsDirect laborVariable overheadVariable marketing and administrativeTotal variable costsContribution marginLessFixed costsManufacturing overheadMarketingAdministrativeTotal fixed costsOperating profitsRequired:Prepare a flexible budget for Fournier Fixtures.Note: Do not round intermediate calculations.Actual (based on budgeted ordersactual orders for for 377,500422,800 units)$ 8,033,200Master Budget(based on$$ 3,013,6002,663,8002,365,000241,000221,0001,232,8001,094,000882,000792,0005,019,600 $ 4,472,000$ 3,078,0001,659,000587,200399,000$ 2,645,200$368,400units)$ 7,550,0001,690,000570,000435,000$ 2,695,000$ 383,000

Lets understand basics. Management prepare mainly two type of budgets which are, (1) Static budget…

Answered: Fournier Fixtures produces a variety of…

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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J&J Materials and Construction Corporation produces fertilizer and distributes the product by using dump trucks. The company uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data: Budgeted output units Budgeted fleet hours Budgeted variable manufacturing overhead costs for 680 loads Actual output units produced and delivered Actual fleet hours Actual variable manufacturing overhead costs 680 truckloads 476 hours $72,590 615 truckloads What is the flexible-budget variance for variable manufacturing overhead? 376 hours $67,790 OA. $4,800 favorable OB. $4,800 unfavorable OC. $2,139 favorable OD. $2,139 unfavorable
Flounder Possible Inc. (FP) is a manufacturer of toaster ovens. To improve control over operations, the president of FP wants to begin using a flexible budgeting system, rather than using only the current master budget. The following data are available for FP's expected costs at production levels of 81,000, 90,000, and 99,000 units. Variable costs Manufacturing $5 per unit Administrative $3 per unit Selling $3 per unit Fixed costs Manufacturing $144,000 Administrative $72,000
Glencoe, Inc., costs products using a normal costing system. The following data is available for last year: Budgeted: 4.1 4.2 4.3 Overhead Machine hours Direct labour hours 4.4 Actual: Overhead Machine hours Direct labour hours Prime cost Number of units R476 000 140 000 17 000 Overhead is applied on the basis of direct labour hours. Required: R475 000 137 000 16 550 R1 750 000 250 000 Calculate the predetermined overhead rate. Calculate the applied overhead for last year. Was the overhead over- or under-applied, and by how much? Calculate the total cost per unit produced (to 2 decimal places).
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Thornton Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Thornton expects to incur $648,000 of overhead cost during the next fiscal year. Other budget information follows. Vogue Beauty Glamour 5,000 1,300 Total Direct labor hours Machine hours 7,000 6,000 18,000 1,800 1,400 4,500 Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.
Casey Limited, which manufactures a single product, is considering whether to use marginal or absorption costing to report its budgeted profit in itsmanagement accounts. The following information is available: $/unit Direct materials 2 Direct labour 8 10 Selling price 35 Fixed production overheads are budgeted to be $25,000 per month and are absorbed on an activity level of 10,000 units per month. For the month in question, sales are expected to be 8,000 units althoughproduction units will be 10,000 units. Fixed selling costs of $15,000 per month will incurred and the variable selling costs would be $0.20 per unit. There are no opening Inventory. Required:Prepare the budgeted profit and loss account for a month for Casey Limited using absorption costing. Clearly show the valuation of any Inventory figures.
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Direct labor Indirect labor Utilities Supplies Equipment depreciation Cost Formulas $16.309 $4,200+ $1.809 $5,800+ $0.909 $1,800+ $0.109 The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Factory rent Property taxes Factory administration $18,600 + $2.609 $8,100 $2,800 $13,300 + $0.709 Actual Cost Incurred in March $ 66,780 $ 10,940 $ 9,970 $ 2,430 $ 29,000 $ 8,500 $ 2,800 $ 15,470 Required: 1. Prepare the Production Department's planning budget for the month.
Fournier Fixtures produces a variety of manufactured items for the home and building industry. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs. Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Fournier Fixtures Sales Activity Variance Drau Actual (based on budgeted orders actual orders for for 392,500 439,600 units) units) $ 8,352,400 $ 7,850,000 2,698,600 247,000 1,261,600 894,000 $ 5,101,200 $ 3,251,200 1,713,000 648,400 453,000 $ 2,814,400 $ 436,800 Master Budget (based on Required: Prepare a sales activity variance analysis for Fournier Fixtures. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for…
Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $17 per direct labor-hour, which was calculated using the following budgeted data: Variable manufacturing overhead $ 80,000 Fixed manufacturing overhead $ 260,000 Direct labor-hours 20,000 Management is considering a special order for 710 units of product O96S at $65 each. The normal selling price of product O96S is $76 and the unit product cost is determined as follows: Direct materials $ 38.00 Direct labor 17.00 Manufacturing overhead applied 17.00 Unit product cost $ 72.00 If the special order were accepted, normal sales of this and other products would not be affected. The company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by the special…
S Craftmore Machining reports the following budgeted overhead cost and related data for this year. Budgeted Activity Usage Budgeted Cost $ 555,750 85,500 28,500 Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) 13,000 1,500 11,400 570 71,250 Setups $ 741,000 Activity Assembly Product design Electricity Setup Total Required: 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 13,000 direct labor hours. 2. Job 31 used 320 direct labor hours and Job 42 used 680 direct labor hours. Allocate overhead cost to each job using the single plantwide overhead rate from part 1. 3. Compute an activity rate for each activity using activity-based costing. 4. Allocate overhead costs to Job 31 and Job 42 using activity-based costing. Activity Cost Driver Direct labor hours (DLH) Engineering hours (EH) Machine hours (MH) Setups Required 1 Required 2 Activity Usage Job 31 Required 3 320 43 56 6 Complete this question by…
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Cost Formulas $16.60q $4,300 +$1.60q $5,700 +$0.40q Supplies $1,200 + $0.20q Equipment depreciation Factory rent $18,600 + $2.80q $8,400 $2,500 Property taxes Factory administration $13,100 +$0.50q The Production Department planned to work 4,500 labor-hours in March; however, it actually worked 4,300 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $ 73,020 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: $ 10,680 $ 7,890 $ 2,310 $ 30,640 $ 8,800 $ 2,500 $ 14,580 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production…
Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 125,500 cases at a budgeted price of $60 per case this year. The standard direct cost sheet for one case of pet food follows: Direct materials Direct labor Sales revenue Less variable costs Variable overhead is applied based on direct labor-hours. The variable overhead rate is $16 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $10 per unit. All nonmanufacturing costs are fixed and are budgeted at $2.2 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $336,000 favorable. The following is the actual income statement (in thousands of dollars) for the year for Golden Food Products: Direct materials Direct labor Variable overhead Total variable costs Contribution margin Less fixed costs Fixed manufacturing overhead…

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