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

See similar textbooks

Similar questions

Matolo ltd manufactures two types of products BELL and CELL.The following budgeted information is available PRODUCT BELL CELL Budgeted Production and Sales in Units 550 550 Labour hours per unit 100 100 Variable cost per unit K15,000 K16,000 Total budgeted labour hours 110,000 240,000 The company has general fixed overheads amounting to K13,010,000 which is absorbed using labour hour rate. The analysis of the K13,010,000 general fixed overheads revealed the following: Overhead item K’000 Setup costs 6,000 Inspection 3,510 Labour costs…
Ocean Sails manufactures sailing boats in two models: the Wave Rider and the Stress Killer. The company currently uses a variable costing system for internal reporting purposes. Its budgeted profit statement for the year ended 31 March 2021 is provided in the following table: Wave Rider (£) Stress Killer (£) Total (£) Sales revenues 52,500,000 105,000,000 157,500,000 Variable cost of goods sold 39,343,750 79,800,000 119,143,750 Variable marketing & admin costs 6,300,000 12,600,000 18,900,000 Contribution margin 6,856,250 12,600,000 19,456,250 Fixed manufacturing overhead 3,500,000 Fixed marketing & admin costs 16,000,000 Profit (Loss) (43,750) The following information from the budget is also available: Wave Rider Stress Killer (Units) (Units) Opening inventory 5 8 Units produced 20 25 Closing inventory 15 5 Units…
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
Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 120,000 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 $12 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…
Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 457,000 units) Master Budget (based on budgeted orders for 494,000 units) Sales revenue $ 4,975,000 $ 4,940,000 Less Variable costs Materials 1,475,000 1,482,000 Direct labor 283,000 345,800 Variable overhead 675,100 642,200 Variable marketing and administrative 482,000 494,000 Total variable costs $ 2,915,100 $ 2,964,000 Contribution margin $ 2,059,900 $ 1,976,000 Less Fixed costs Manufacturing overhead 990,200 960,700 Marketing 295,000 295,000 Administrative 211,000 180,700…
Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Budget Actual Variable costs for lubricants $ 279,300 * $ 357,090 Fixed costs for salaries and other $ 195,000 $ 209,500 *Budgeted at $19 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage ofPeak-PeriodCapacity Required Machine-Hours Budget Actual Forming Department 70% 9,500 11,500 Assembly Department 30% 5,200 4,200 Total 100% 14,700 15,700 The level of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: 1. How much Maintenance…
Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Units Setups Inspections Assembly (dlh) Small table lamps 2,500 3,400 8,550 40,400 Desk lamps 10,500 6,800 14,250 40,400 Activity Total Activity-Base Usage Budgeted Activity Cost Setups 10,200 $92,820 Inspections 22,800 118,560 Assembly (dlh) 70,700 282,800 The total factory overhead to be allocated to each unit of small table lamps is a.$132.72 b.$56.88 c.$161.16 d.$94.80
Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 450,000 units) Master Budget (based on budgeted orders for 480,000 units) Sales revenue $ 4,975,000 $ 4,800,000 Less Variable costs Materials 1,536,000 1,536,000 Direct labor 245,000 312,000 Variable overhead 530,100 480,000 Variable marketing and administrative 445,500 456,000 Total variable costs $ 2,756,600 $ 2,784,000 Contribution margin $ 2,218,400 $ 2,016,000 Less Fixed costs Manufacturing overhead 883,100 855,000 Marketing 276,000 276,000 Administrative 199,000 175,000…
Hello questions is attached, thanks.
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.
Westmont Corporation uses a comprehensive budgeting system for planning and control purposes. While departmental supervisors are happy with the system, the factory manager is not. A report for the company's Assembly Department for March follows: Machine-hours Variable costs: Supplies Scrap Indirect materials Fixed costs: Wages and salaries Equipment depreciation Total cost Assembly Department Cost Report For the Month Ended March 31 Actual Results 25,000 Required 1 $ 6,600 19,600 61,400 66,700 94,000 $ 248,300 Required 2 Required 3 Planning Budget 30,000 $ 7,200 21,000 70,500 64,000 94,000 $ 256,700 Required 4 After receiving this report, the supervisor of the Assembly Department stated, "These reports are super. It makes me feel good to see how well things are going in my department. I can't understand why those people upstairs complain so much about the reports." Variances For the last several years, the company's marketing department chronically failed to meet the sales goals…
Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Master Budget (based on budgeted orders for 480,000 units) Actual (based on actual orders for 450,000 units) Sales revenue $4,487,000 $4,320,000 Less Variable costs Materials 1,536,000 288,000 528,000 456,000 1,536,000 Direct labor 223,000 578,100 Variable overhead Variable marketing and administrative 442,000 $2,779,100 $1,707,900 $2,808,000 $1,512,000 Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing 653,700 180,000 128,000 $ 625,000 180,000 105,000 2$ Administrative Total fixed costs 961,700 910,000 Operating profits 746,200 2$ 602,000 Required: Prepare a sales activity variance analysis for Osage, Inc. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS