James, the production manager, was pleased at the company's income statement results. Actual DL cost was only $52,000, compared to the budgeted $60,200, while actual sales volume came in 200 units below original projections. The company actually used 2,500 DL hours to make the 1,200 units produced and sold. Each unit was budgeted to take 2 DL hours; each DL hour was budgeted at $21.50 per hour. Calculate the company's DL price and DL efficiency variances. (Round intermediate calculations to to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,125.) DL price variance DL efficiency variance $ $

James, the production manager, was pleased at the company's income statement results. Actual DL cost was only $52,000, compared to the budgeted $60,200, while actual sales volume came in 200 units below original projections. The company actually used 2,500 DL hours to make the 1,200 units produced and sold. Each unit was budgeted to take 2 DL hours; each DL hour was budgeted at $21.50 per hour. Calculate the company's DL price and DL efficiency variances. (Round intermediate calculations to to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,125.) DL price variance DL efficiency variance $ $

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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Matthew, the production manager, was pleased at the company's income statement results. Actual DL cost was only $65,540, compared to the budgeted $73,600, while actual sales volume came in 200 units below original projections. The company actually used 2,900 DL hours to make the 1,400 units produced and sold. Each unit was budgeted to take 2 DL hours; each DL hour was budgeted at $23.00 per hour. Calculate the company's DL price and DL efficiency variances. (Round intermediate calculations to to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 5,125.) DL price variance DL efficiency variance Save for Later $ $ Favorable Unfavorable Neither Favorable nor Unfavorable Attempts: unlimited Submit Answer
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Flounder Possible Inc. (FP) is a manufacturer of toaster ovens. To improve control over operations, the president of FP wants to begin using a flexible budgeting system, rather than using only the current master budget. The following data are available for FP's expected costs at production levels of 81,000, 90,000, and 99,000 units. Variable costs Manufacturing $5 per unit Administrative $3 per unit Selling $3 per unit Fixed costs Manufacturing $144,000 Administrative $72,000
Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold. Barbara Cheney, Pittman's controller, has just prepared the company's budgeted income statement for next year as follows: Pittman Company Budgeted Income Statement For the Year Ended December 31 Sales Manufacturing expenses: Variable Fixed overhead Gross margin Selling and administrative expenses: Commissions to agents. Fixed marketing expenses Fixed administrative expenses Net operating income Fixed interest expenses Income before income taxes Income taxes (30%) Net income $11,025,000 3,430,000 The breakdown of the $3,675,000 cost follows: 3,675,000 Salaries: 171,500* Sales manager 2,140,000 *Primarily depreciation on storage facilities. As Barbara handed the statement to Karl Vecci, Pittman's president, she…
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Could you help me solve the question in the picture below?
During the first quarter, skeleton produced 60,000 units and incurred total manufacturing costs of $184,000 b. A performance report for Skelton's first quarter of operations using a flexible budget approach would show: A) Actual costs over budget by $1,300. B) Actual costs over budget by $11,700. C) Actual costs over budget by $15,150. D) Total costs per the flexible budget of $194,400.
As the new accountant for Cohen & Company, you have been asked to provide a succinct analysis of financial performance for the year just ended. You obtain the following information that pertains to the company's sole product: Actual Master Budget Units sold 35,000 40,000 Sales $ 385,000 $460,000 Variable costs 215,000 275,000 Fixed costs 148,125 140,000 Required: 1. What was the actual operating income for the period? 2. What was the company's master budget operating income for the period? 3. (a) What was the total master budget variance, in terms of operating income, for the period? (b) Is this variance favorable or unfavorable? (If a variance has no amount, select "None" in the corresponding dropdown cell. ) 4. The total master budget variance for a period can be decomposed into a total flexible budget variance and a sales volume variance. (a) What was the total flexible - budget variance for the period? (b) Was this variance favorable or unfavorable? (c) What was the sales volume…
GrayCell is in their first year of operations. GrayCell budgeted $40,000 of fixed manufacturing overhead, which they allocated over an activity base of 1,000 units. They actually produced 974 units, actually incurred $44,154 in fixed manufacturing overhead, and actually sold 891 Calculate the difference between absorption and variable income for GrayCell.