Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $460 per month plus $106 per job plus $26 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in December to be 16 jobs and 126 meals, but the actual activity was 10 jobs and 109 meals. The actual cost for catering supplies in December was $4,850. The spending variance for catering supplies in December would be closest to: Multiple Choice O $582 U $582 F

Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $460 per month plus $106 per job plus $26 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in December to be 16 jobs and 126 meals, but the actual activity was 10 jobs and 109 meals. The actual cost for catering supplies in December was $4,850. The spending variance for catering supplies in December would be closest to: Multiple Choice O $582 U $582 F

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 Co. provides house cleaning services. The company uses the number of jobs to measure activity. At the beginning of March, the company budgeted for 60 jobs, but the actual number of jobs turned out to be 70. Wages and salaries expense is a mixed cost. Supplies expense is a variable cost. Transportation expense is a fixed cost. Here is a report comparing the actual vs. budgeted revenues and costs for the month of March: What is the amount of Supplies Expense in the Flexible Budget?
Harrison, Inc. is preparing their budget for the upcoming year and requires a breakdown of the costs of power used in its factory into the fixed and variable components. They have determined the number of direct labor hours worked affects the cost of power. The following data on the cost of power used and direct labor hours worked are available for the last six months of this year: Month July August September October High-Low Method November December Total Cost of Power $ 14,850 15,400 16,370 19,800 17,600 18,500 $102.520 Direct Labor Hours 3,000 2,050 2,900 3,650 2,670 2,650 16.920 1. Assuming that Harrison uses the high-low method of analysis, calculate the cost function to be used to estimate the power costs. 2. They have determined that production needs will require 8,467 direct labor hours. Using the cost function calculated above, what is the estimated cost of power?
The cost formula for the maintenance department of Rambo Limited is $19,200 per month plus $7.50 per machine hour used by the production department. Required: a. Calculate the maintenance cost that would be budgeted for a month in which 6,600 machine hours are planned to be used. b. Prepare an appropriate performance report for the maintenance department assuming that 7,100 machine hours would be used in the month of May and that the total actual maintenance cost incurred in May was $68,950. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the maintenance cost that would be budgeted for a month in which 6,600 machine hours are planned to be used. Maintenance cost
Canniff Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $56,760 per month plus $2626 per flight plus $9 per passenger. The company expected its activity in February to be 63 flights and 262 passengers, but the actual activity was 62 flights and 263 passengers. The actual cost for plane operating costs in February was $220,700. The plane operating costs in the planning budget for February would be closest to:
Canniff Air uses two measures of activity, flights and passengers, In the cost formulas In Its budgets and performance reports. The cost formula for plane operating costs Is $57,060 per month plus $2,638 per filight plus $8 per passenger. The company expected Its activity In February to be 69 filghts and 274 passengers, but the actual activity was 68 flghts and 275 passengers. The actual cost for plane operating costs in February was $237,330. The plane operating costs In the planning budget for February would be closest to: Multiple Cholce $241,274 $239,968 $238,644 $237.330
The Janesky Company has collected data on the manufacture of 6,473 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months. Units sold last month 6,473 Direct materials $142,853 Direct labor $379,071 Manufacturing variable overhead $267,425 Selling and administrative costs $211,977 What is the break even quantity for a price of $382?
The total factory overhead for Big Light Company is budgeted for the year at $2,201,190. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 18,000 units. Each night light requires 2 hours of direct labor. Desk lamps are budgeted for 18,700 units. Each desk lamp requires 3 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year.fill in the blank direct labor hours b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places.fill in the blank per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places.Night lights fill in the blank per unitDesk lamps fill in the blank per unit
The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year. The following information was taken from the annual budget: Direct labor hours 84,000 Machine hours 120,000 Manufacturing costs: Direct labor $525,000 Direct materials 180,000 Indirect labor 75,000 Electric power 48,000 Payroll taxes 12,600 Machine maintenance and repair 9,200 Factory supplies 16,000 Factory heat and light 14,000 Depreciation, taxes, and insurance: Factory buildings 135,000 Machinery 320,200 $1,335,000 Actual results for the year follow: Direct labor hours 85,000 Machine hours 110,000 Manufacturing costs: Direct labor $ 540,000 Direct material 200,000 Factory overhead 625,000…
Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $550 per month plus $77 per job plus $13 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in September to be 18 jobs and 148 meals, but the actual activity was 14 jobs and 145 meals. The actual cost for catering supplies in September was $3,340. The catering supplies in the planning budget for September would be closest to: Multiple Choice O $3,890 $3,860 $3,340 $3,513
Over and Under, Inc. manufactures weaving looms. Before the period began, the company prepared the following manufacturing overhead budget for an expected activity level of 15,000 direct labor hours (DL hrs): Variable Manufacturing Overhead Costs $322,500 Fixed Manufacturing Overhead Costs $205,000 By the end of the period, the company noted that 3,000 fewer direct labor hours were logged than expected. The total actual manufacturing overhead costs incurred during the period was $545,000, of which, $325,000 was fixed. Which of the following statements is incorrect for the above data? A. The total volume variance can be calculated by multiplying the unit variable cost by the difference between the expected DL hrs and the actual DL hrs. B. The master budget variance related to fixed manufacturing overhead costs for the period equals $120,000. C. The volume variance for variable manufacturing overhead costs is favorable because fewer DL hrs were logged during production than expected. D.…
Riffa Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted manufacturing overhead for the year was $455,600, and management budgeted 33,500 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventories at the beginning of April. These transactions were recorded during April: a. Paid$3,140 premium insurance cost for the manufacturing property and equipment. b. Recorded $1,340 depreciation on an administrative asset. c. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). Paid factory utility bill, $6,870, in cash. d. e. Incurred 4,000 labour hours and paid labour costs of $160,000. Of this amount, 1,000 labour hours and $20,000 were indirect labor costs. f. Incurred and paid other manufacturing overhead costs, $6,540. g. Purchased $29,000 of materials. Direct materials included unpolished semiprecious stones…