From the following data, prepare a flexible budget for production of 40,000, units and 75,000 units, distinctly showing variable cost and fixed cost as well as total cost Also indicate element- wise cost per unit. Budgeted output is 100,000, units and budgeted cost per unit is as follows: OMR. Direct Material 95 Direct labor 50 Production overhead (variable) 40 Production overhead (fixed) 5. Administration overhead (fixed) Selling overhead (10% fixed) 10 Distribution overhead (20% fixed) 15

From the following data, prepare a flexible budget for production of 40,000, units and 75,000 units, distinctly showing variable cost and fixed cost as well as total cost Also indicate element- wise cost per unit. Budgeted output is 100,000, units and budgeted cost per unit is as follows: OMR. Direct Material 95 Direct labor 50 Production overhead (variable) 40 Production overhead (fixed) 5. Administration overhead (fixed) Selling overhead (10% fixed) 10 Distribution overhead (20% fixed) 15

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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A company manufactures one product, the JB3. Budgeted fixed overhead per unit is 1 and budgeted output is 4,000 units. Actual output is 4, 800 units and the actual overheads are 44,800. What is the fixed overhead expenditure variance? a) 3, 200 Adverse b) 4, 800 Favourable c) 4, 800 Adverse d) 3, 200 Favourable
The Illustrative Corporation recorded the following budgeted and actual information relating to fixed overhead costs for its Z-Line of products Standard fixed overhead per direct labor hour Standard direct labor hours per unit Budgeted production Budgeted fixed overhead costs $3 0.75 3,400 $7.650.00 Actual production in units Actual fixed overhead costs incurred What is Illustrative's fixed manufacturing overhead volume variance? A. $2.025.00 favorable OB. $4.950.00 favorable OC. $2,025.00 unfavorable D. $4.950.00 unfavorable 4,300 $2.700.00
Langley Manufacturing Ltd. has budgeted fixed manufacturing overhead at $100,000 and per unit variable costs of $3.50 for Direct Materials; $8.95 for Direct Labourand $4.10 for Variable Overhead. With a relevant range of 10,000 to 15,000 units what are the total costs for activity levels of 10,000 units and 14,000 units, respectively?
Fogel Company expects to produce and sell 112.000 units for the period. The company's flexible budget for 112,000 units shows variable overhead costs of $156.800 and fixed overhead costs of $133,000. The company incurred actual total overhead costs of $254,800 while producing 106,000 units. a. Compute the total variable overhead costs for the flexible budget when producing 106,000 units. b. Compute the budgeted (flexible) total overhead when producing 106,000 units. c. Compute the controllable variance and identify it as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal places.) Flexible Budget Flexible Budget at- Variable Amount per Unit 112,000 units Total Fixed Cost 106,000 units Total flexible budget Controllable Overhead Variance Controllable overhead variance
The following information is available for the Danske Company: Denominator hours for May Actual hours worked during May Standard hours allowed for May Flexible budget fixed overhead cost Actual fixed overhead costs for May Danske Company had total underapplied overhead of $20,000. Additional information is as follows: Variable Overhead: Applied based on standard direct labor-hours allowed Budgeted based on standard direct labor-hours Fixed Overhead: Applied based on standard direct labor-hours allowed Budgeted based on standard dinect labon-hours $ 52,000 43,000 $ 40,000 32,000 What is the fixed overhead price (spending) variance for May? Multiple Choice $4,000 unfavorable 94.100 unfavorable
Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. Production (in units) Overhead Variable overhead Fixed overhead Total overhead Flexible Budget at 80% Capacity 50,250 Required 1 Required 2 $ 276,375 50, 250 $ 326,625 Exercise 21-18 (Algo) Volume and controllable variances LO P4 Actual Results 44,400 (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute the overhead controllable variance. Indicate variance as favorable or unfavorable. Budgeted (flexible) overhead Standard overhead applied Volume variance $ 308,300 Complete this question by entering your answers in the tabs below. Volume Variance Compute the overhead volume variance.…
Perez Manufacturing Company established the following standard price and cost data. Sales price Variable manufacturing cost $ 8.98 per unit $ 3.40 per unit Fixed manufacturing cost Fixed selling and administrative cost $ 2,000 total $ 600 total Perez planned to produce and sell 2,300 units. Actual production and sales amounted to 2,600 units. Required a. Prepare the pro forma income statement in contribution format that would appear in a master budget. b. Prepare the proforma Income statement in contribution format that would appear in a flexible budget. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the pro forma income statement in contribution format that would appear in a master budget. PEREZ MANUFACTURING COMPANY Pro Forma Income Statement Master Budget 2,300 Units
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Cherokee Manufacturing Company established the following standard price and cost data: Sales price $ 12.00 per unit Variable manufacturing cost 7.20 per unit Fixed manufacturing cost 3,600 total Fixed selling and administrative cost 1,200 total Cherokee planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units. Required Prepare the pro forma income statement in contribution format that would appear in a master budget. Prepare the pro forma income statement in contribution format that would appear in a flexible budget.
K Juda Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Juda allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: Data table Sales Static Budget (1,025 recliners) Actual Results (1,005 recliners) (1,025 recliners x $515 each) (1.005 recliners x $480 each) S 527,875 S 482,400 Variable Manufacturing Costs: Direct Materials (6.150 yds. @ $8.907 yd.) (6,300 yds. @ $8.70/yd.) 54.735 54,810 Direct Labor (10,250 DLHr @ $11.30 / DLHr) (9,850 DLHr @ $11.40/DLHr) 115,825 112:290 Variable Overhead (6,150 yds @ $5.10/yd.) 31,365 (6,300 yds. @ $6.50 / yd.) 40,950 Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit X 62,730 64,730 0 264,655 272,780 $ 263,220 $ 209.620 Us
Novak Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor: $1.10, Indirect materials: 0.80, Utilities: 0.50. Fixed overhead costs per month are Supervision $4, 000, Depreciation $1, 200, and Property Taxes $800. The company believes i will normally operate in a range of 7, 000-10, 000 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 1, 000 direct labor hours. (List variable costs before fixed costs.)
The following information is available for a manufacturer. Compute the direct labor rate and efficiency variances and label them as favorable (F) or unfavorable (U). Actual direct labor cost (6,250 hours @ $13.10 per hour) $81,875 Standard direct labor hours per unit . 2.0 hours Standard direct labor rate per hour $13.00 Actual production (units) . 2,500 units Budgeted production (units) . 3,000 units