Heavy Products, Inc. developed standard costs for direct mat 2017, All estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity Budgeted price $100 per pound Direct materials 0.8 pounds 0.1 hours Direct labor $20 per hour During June, Heavy Products produced and sold 23,000 containers using 19,000 pounds of direct materials at an average cost per pound of $102 and 18,400 direct manufacturing labor-hours at an average wage of $21.00 per hour. June's direct material flexible-budget variance is $38,000 favorable $98,000 unfavorable O $46,000 unfavorable O $18,400 favorable
Heavy Products, Inc. developed standard costs for direct mat 2017, All estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity Budgeted price $100 per pound Direct materials 0.8 pounds 0.1 hours Direct labor $20 per hour During June, Heavy Products produced and sold 23,000 containers using 19,000 pounds of direct materials at an average cost per pound of $102 and 18,400 direct manufacturing labor-hours at an average wage of $21.00 per hour. June's direct material flexible-budget variance is $38,000 favorable $98,000 unfavorable O $46,000 unfavorable O $18,400 favorable
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 20E: Jameson Company produces paper towels. The company has established the following direct materials...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Heavy Products, Inc. developed standard costs for direct material and direct labor. In
2017, All estimated the following standard costs for one of their major products,
the 10-gallon plastic container.
Direct materials 0.8 pounds
0.1 hours
Budgeted quantity Budgeted price
$100 per pound
$20
Direct labor
per
hour
During June, Heavy Products produced and sold 23,000 containers
using 19,000 pounds of direct materials at an average cost per pound
of $102 and 18,400 direct manufacturing
labor-hours at an average wage of $21.00 per hour.
June's direct material flexible-budget variance is
$38,000 favorable
$98,000 unfavorable
$46,000 unfavorable
O $18,400 favorable
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