Franz Consulting started operations on January 1. During January, Franz consulting had 120 hours of professional service. During February, the activity was 150 hours.Consulting software subscription cost for these two levels of activity usage are as follows: January February Hours of professional service 120 Hours 150 Hours Consultingsoftware subscription cost $ 870 $1,050 The cost classification of consulting software subscription cost using hours of professional service as the activity driver is

High-low method is one of the method to separate the variable cost and fixed cost from the mixed…

Answered: Franz Consulting started operations on…

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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Similar questions

Your Company's standards call for 1.85 hours per unit. The company planned to produce 900 units during May. However, 845 units were produced. The company worked 1,620 direct labor-hours. What are the standard hours (SQ) allowed for May production? Group of answer choices 1,563 845 1,665 2,997
Adams Air is a large airline company that pays a customer relations representative $16,425 per month. The representative, who processed 1,100 customer complaints in January and 1,360 complaints in February, is expected to process 21,900 customer complaints during the year. Required Determine the total cost of processing customer complaints in January and in February.
The following is a summary of costs related to a month of manufacturing products: Direct Materials and Direct Labor = $225,000.00 Indirect Materials, Indirect Labor, and other actual FOH costs = $30,000.00 FOH costs applied to WIP during the month = $17,000.00 From the following, select the journal entry used to record the FOH applied to production during the month. O Debit WIP 30,000 and Credit FOH 30,000 O Debit FOH 30,000 and Credit Accounts Payable 30.000 Debit WIP 17,000 and Credit FOH 17,000 Debit FOH 17,000 and Credit WIP 17,000
Sharp Company manufactures a product for which the following standards have been set: Standard Quantityor Hours Standard Priceor Rate StandardCost Direct materials 3 feet $ 5 per foot $ 15 Direct labor ? hours ? per hour ? During March, the company purchased direct materials at a cost of $60,885, all of which were used in the production of 3,500 units of product. In addition, 5,000 direct labor-hours were worked on the product during the month. The cost of this labor time was $42,500. The following variances have been computed for the month: Materials quantity variance $ 2,850 U Labor spending variance $ 3,300 U Labor efficiency variance $ 800 U Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month’s…
Sharp Company manufactures a product for which the following standards have been set: Standard Quantityor Hours Standard Priceor Rate StandardCost Direct materials 3 feet $ 5 per foot $ 15 Direct labor ? hours ? per hour ? During March, the company purchased direct materials at a cost of $52,965, all of which were used in the production of 2,920 units of product. In addition, 4,500 direct labor-hours were worked on the product during the month. The cost of this labor time was $31,500. The following variances have been computed for the month: Materials quantity variance $ 4,350 U Labor spending variance $ 3,030 U Labor efficiency variance $ 780 U Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month’s production.…
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February. Revenue Technician wages Mobile lab operating expenses office expenses Advertising expenses Insurance Miscellaneous expenses Jobs Revenue Expenses: Technician wages Mobile lab operating The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,500 plus $35 per job, and the actual mobile lab operating expenses for February were $9,240. The company expected to work 140 jobs in February, but actually worked 146 jobs. expenses Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February, (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)…
Berger Mortgage Co. provides the following data on its loan application processing activities for the month of February: Move time Wait time 18 hours 63 hours 230 hours Process time Storage time Inspection time 15 hours 22 hours Compute the cycle efficiency for February:
Genuine Spice Inc. began operations on January 1 of the current year. The company produces8-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in12-bottle cases for $100 per case. There is a selling commission of $20 per case. The Januarydirect materials, direct labor, and factory overhead costs are as follows: Part A—Break-Even AnalysisThe management of Genuine Spice Inc. wishes to determine the number of cases required tobreak even per month. The utilities cost, which is part of factory overhead, is a mixed cost. Thefollowing information was gathered from the first six months of operation regarding this cost: Instructions1. Determine the fixed and variable portions of the utility cost using the high-low method.2. Determine the contribution margin per case.3. Determine the fixed costs per month, including the utility fixed cost from part (1).4. Determine the break-even number of cases per month.
roduction reports for the third quarter show the following data: Month Machine hours Direct labour hours Direct materials cost (£) Floor surface (square meters) Actual Overhead (£) July 10,000 44,000 25,000 150 31,200 August 15,000 37,800 21,750 170 47,000 September 13,400 59,500 32,000 210 40,100 Which variable would be the most likely basis for allocating overhead? a. Machine hours b. Labour hours c. Floor surface d. Direct materials cost
Munoz Air is a large airline company that pays a customer relations representative $3,900 per month. The representative, who processed 1,180 customer complaints in January and 1,370 complaints in February, is expected to process 23,400 customer complaints during the year.Required Determine the total cost of processing customer complaints in January and in February.
Please help answer the Income statement. Use the data at the top of the schedule to complete the report. use the data from your cost of services provided schedule. The cost to use is: Daycare $18 - 22 dogs per day Boarding $25 - 12 dogs per day Grooming $25 - 4 grooms per day
The Assembly Department produced 6,800 units of product during March. Each unit required 3 standard direct labor hours. There were 20,800 actual hours used in the Assembly Department during March at an actual rate of $16.8 per hour. The standard direct labor rate is $17.2 per hour. Assuming direct labor for a month is paid on the fifth day of the following month. Required: Journalize the direct labor in the Assembly Department on March 31. Refer to the Chart of Accounts for exact wording of account titles.

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