Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottomline of the report and saw the favorable variance for operating income, confirming her decision to push the workers to get those last390 cases off the production line before the end of the month.But as she glanced over the rest of numbers, Lexi couldn't help but wonder if there were errors in some of the line items. She waspuzzled at how most of the operating expenses could be higher than the budget since she had worked hard to manage the productionline to improve efficiency and reduce costs. Yet the report, shown below, showed a different story.Cases produced and soldSales revenueLess variable expensesDirect materialDirect laborVariable manufacturing overheadVariable selling expensesVariable administrative expensesTotal variable expenseContribution marginLess fixed expensesFixed manufacturing overheadFixed selling expensesFixed administrative expensesTotal fixed expenseOperating incomeActual10,300$2,080,400Direct materialsDirect laborVariable overheadFixed overheadTotal standard cost per case592,650288,300226.300111,80042,6501,261,700818,700113,00085,150135,000333,150$485,550Budget9,910$1,915,000Irvin also found the standard cost card for a case of product.Standard Price$11.35 per pound$11.15 per DLH$4.40 per MH$2.40 per MH575,300271,500225,500108,60041,3001,222,200692,800115,80084,200133,500Direct materials purchased: 53,800 pounds at a total of $610,630Direct materials used: 51,400 poundsDirect labor hours worked: 25,220 at a total cost of $278,593Machine hours used: 52,000333,500$359,300Standard Quantity5.00 pounds2.40 DLH5 MHVarianceLexi picked up the phone and called Irvin. "Irvin, I don't get it. We beat the budgeted operating income for the month, but look at all theunfavorable variances on the operating costs. Can you help me understand what's going on?" "Let me look into it and I'll get back toyou, Irvin replied.Irvin gathered the following additional information about the month's performance.5 MH390 Favorable$165,400 Favorable17,350 Unfavorable16,800 Unfavorable800 Unfavorable3,200 Unfavorable1,350 Unfavorable39,500 Unfavorable125,900 Favorable2,800 Favorable950 Unfavorable1,500 Unfavorable.(350) Favorable$126,250 FavorableStandard Cost$56.7526.7622.0012.00$117.51 (a-g)Your answer is partially correct.(a-b) Calculate the direct material price variance and direct material quantity variance for the month. (If variance is zero, select "NotApplicable" and enter O for the amounts.)Direct material price varianceDirect material quantity varianceDirect labor rate varianceDirect labor efficiency variance(c-d) Calculate the direct labor rate variance and direct labor efficiency variance for the month. (Round answers to O decimal places,e.g. 1,525. If variance is zero, select "Not Applicable" and enter O for the amounts.)$Variable overhead spending variance$Variable overhead efficiency varianceFixed overhead spending varianceeTextbook and Media$Save for Later$$$467,690(e-f) Calculate the variable overhead spending variance and variable overhead efficiency variance for the month. (If variance iszero, select "Not Applicable" and enter O for the amounts.)$02,5225,580Not Applicable02,200Favorable350Favorable(g) Calculate the fixed overhead spending variance for the month. (If variance is zero, select "Not Applicable" and enter O for theamounts.)UnfavorableFavorableUnfavorableFavorableAttempts: unlimited Submit Answer

Variance analysis in cost accounting is a technique used to analyze and explain the difference…

Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottom line of the report and saw the favorable variance for operating income, confirming her decision to push the workers to get those last 390 cases off the production line before the end of the month. But as she glanced over the rest of numbers, Lexi couldn't help but wonder if there were errors in some of the line items. She was puzzled at how most of the operating expenses could be higher than the budget since she had worked hard to manage the production line to improve efficiency and reduce costs. Yet the report, shown below, showed a different story. Cases produced and sold Sales revenue Less variable expenses Direct material Direct labor Actual 10,300 $2,080,400 592,650 288,300 Budget 9,910 $1,915,000 575,300 271,500 Variance 390 Favorable $165,400 Favorable 17,350 Unfavorable 16,800 Unfavorable

Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottom line of the report and saw the favorable variance for operating income, confirming her decision to push the workers to get those last 390 cases off the production line before the end of the month. But as she glanced over the rest of numbers, Lexi couldn't help but wonder if there were errors in some of the line items. She was puzzled at how most of the operating expenses could be higher than the budget since she had worked hard to manage the production line to improve efficiency and reduce costs. Yet the report, shown below, showed a different story. Cases produced and sold Sales revenue Less variable expenses Direct material Direct labor Actual 10,300 $2,080,400 592,650 288,300 Budget 9,910 $1,915,000 575,300 271,500 Variance 390 Favorable $165,400 Favorable 17,350 Unfavorable 16,800 Unfavorable

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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Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottom line of the report and saw the favorable variance for operating income, confirming her decision to push the workers to get those last 390 cases off the production line before the end of the month.But as she glanced over the rest of numbers, Lexi couldn’t help but wonder if there were errors in some of the line items. She was puzzled at how most of the operating expenses could be higher than the budget since she had worked hard to manage the production line to improve efficiency and reduce costs. Yet the report, shown below, showed a different story. Actual Budget Variance Cases produced and sold 10,300 9,910 390 Favorable Sales revenue $ 2,081,100 $ 1,950,000 $ 131,100 Favorable Less variable expenses Direct material 593,000 576,000 17,000 Unfavorable…
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Drew Castello, general manager of Sunflower Manufacturing, was frustrated. He wanted the budgeted results, and his staff was not getting them to him fast enough. Drew decided to pay a visit to the accounting office, where Jeff Hollingsworth was supposed to be working on the reports. Jeff had recently been hired to update the accounting system and speed up the reporting process. “What’s taking so long?” Drew asked. “When am I going to get the variance reports?” Jeff sighed and attempted to explain the problem. “Some of the variances appear to be way off. We either have a serious problem in production, or there is an error in the spreadsheet. I want to recheck the spreadsheet before I distribute the report.” Drew pulled up a chair, and the two men went through the spreadsheet together. The formulas in the spreadsheet were correct and showed a large unfavorable direct labor efficiency variance. It was time for Drew and Jeff to do some investigating. After looking at the time records, Jeff…
The following frequency distribution reports the number of frequent flier miles, reported in thousands, for employees of Brumley Statistical Consulting Incorporated during the most recent quarter. Frequent Flier Miles (000) Number of Employees 0 up to 4 4 4 up to 8 10 8 up to 12 24 12 up to 16 9 16 up to 20 1 Total 48 Required: How many employees were studied? What is the midpoint of the first class? Note: Enter the answer in thousands. Round your answer to 1 decimal place. Midpoint _______thousand frequent flier miles A frequency polygon is to be drawn. What are the coordinates of the plot for the first class? Note: Round your answers to 1 decimal place. X = Y =
Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported: Inspection time 0.5 days Wait time (from order to start of production) 15.5 days Process time 2.9 days Move time 1.2 days Queue time 4.3 days Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the throughput time was spent in non–value-added activities? (Round your percentage answer to nearest whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage…
Bonita Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Bonita is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be assigned to each product line. The information shown below relates to overhead. Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line (a) Your answer is incorrect. (1) One mobile safe (2) Mobile Safes Walk-in Safes 200 50 One walk-in safe $ 300 450 800 The total estimated manufacturing overhead was $272,000. Under traditional costing (which assigns overhead on the basis of direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, e.g. 12.25.) 200 350 1,700 per unit per unit
Calculating the Costs of Increasing the Total CompensationBudget at Butcher EnterprisesButcher Enterprises has experienced substantial employee turnover among its office workers. During exit interviews, more than 80 percent stated that low pay was the top reason for resigning. The company conducted a survey of local companies’ pay practices to confirm whether this concern is valid. Indeed, Butcher Enterprises’ average hourly pay rate for total compensation falls well below the market. The compensation survey showed an average hourly rate of $23 for total compensation. Of this amount, wages are $16 per hour and benefits are $7 per hour. In comparison, Butcher Enterprises spends an average hourly rate of $19 for total compensation. Of this amount, 70 percent is allocated for wages.1.1. On an average hourly basis, how much does Butcher Enterprises spend on wages and benefits,respectively, in dollars?
Your department head wants you to perform a cost analysis and provide data to the CFO next week. The budget information below comes directly from your accounting department and the figures are correct, however you know that your CFO's time is important and she often asks for ratios that are not calculated by your accounting department. Your department head has challenged you to present common ratios as he wants to mentor you for a potential assistant director position. Your figures need to be specific and accurate. Since you do not know "exactly" which figures to present, you decided to cover the Eight Basic Ratios Used in Health Care. This way, you can answer any question intelligently. Use the data listed below to calculate (show your work) each of the Eight Basic Ratios Used in Health Care. Explain for each ratio what your answer means to the company. (You should have 8 explanations.) Current Assets = $18,000,542.00 Current Liabilities = $12,240,543.00 Cash & Cash…
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Consider each of the following independent scenarios:a. Terrin Belson, plant manager for the laser printer factory of Compugear Inc., brushed hishair back and sighed. December had been a bad month. Two machines had broken down,and some factory production workers (all on salary) were idled for part of the month.Materials prices increased, and insurance premiums on the factory increased. No way outof it; costs were going up. He hoped that the marketing vice president would be able topush through some price increases, but that really wasn’t his department.b. Joanna Pauly was delighted to see that her ROI figures had increased for the third straightyear. She was sure that her campaign to lower costs and use machinery more efficiently(enabling her factories to sell several older machines) was the reason why. Joanna plannedto take full credit for the improvements at her semiannual performance review.c. Gil Rodriguez, sales manager for ComputerWorks, was not pleased with a memo…
Transmissions are delivered to the fabrication line four at a time. It takes one hour for transmissions to be delivered. Approximately five vehicles are produced each hour, and management has decided that 40 percent of expected demand should be maintained as safety stock. How many Kanban card sets are needed? (Round up your answer to the next whole number.) The Deming Cycle is: A. a checklist that enables managers to evaluate employee performance more systematically. B. a systematic method of evaluating potential facility locations. C. a process for finding potential quality errors before they occur. D. a process for using identical production steps in the creation of different types of products.
Stuck on these practice problems please provide details on how you got your answer so I can see what mistakes I made in my notes