Marigold Corp. uses flexible budgets. At a normal capacity of 22,000 units, the budgeted manufacturing overhead is $66,000 variable and $270,000 fixed. If Stone had actual overhead costs of $337,200 for 24,000 units produced, what is the difference between actual and budgeted costs? a. $3,600 unfavorable b. $4,800 favorable c. $1,200 unfavorable d. $1,200 favorable

Marigold Corp. uses flexible budgets. At a normal capacity of 22,000 units, the budgeted manufacturing overhead is $66,000 variable and $270,000 fixed. If Stone had actual overhead costs of $337,200 for 24,000 units produced, what is the difference between actual and budgeted costs? a. $3,600 unfavorable b. $4,800 favorable c. $1,200 unfavorable d. $1,200 favorable

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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Connor Company's budgeted costs for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per computer case are $40, $8 and $12 respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct Materials $364,000 $400,000 $36,000 F Direct Manufacturing Labor 78,000 80,000 2,000 F Direct Marketing (distribution) Labor 110,000 120,000 10,000 F Actual output was 8,800 cases. Assume all three cost items are variable. Is the president's pleasure justified? Prepare a revised flexible budget for 8,000, 8,800 and 10,000 cases using the framework posted on Canvas. Fixed Costs are budgeted to be $100,000 and actual Fixed Costs are $103,000. Resource Per Unit costs 8,000 8,800 10,000 Actual Costs
A company's flexible budget for 9,000 units of production showed per unit contribution margin of $4.80 and fixed costs, $20,000. The income expected If the company produces and sells 14,000 units is: Multiple Choice $47,200. $3.000. $67,200. $23.200. $20.000. A company's flexible budget for 13,300 units of production showed sales, $43,890; variable costs, $15,960; and fixed costs, $15,400, The income expected if the company produces and sells 17,300 units is: Multiple Choice $3,333. $12,530. $25,500. $20,930. $26,313.
Vaughn Manufacturing uses flexible budgets. At normal capacity of 15000 units, budgeted manufacturing overhead is: $90000 for variable costs and $180000 for fixed costs. If Vaughn had actual overhead costs of $225000 for 20000 units produced, what is the difference between actual and budgeted costs? O $75000 unfavorable. O $75000 favorable. O$300000 favorable. O $225000 unfavorable.
Schriever Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Revenue Employee salaries and wages Servicing materials Other expenses Multiple Choice The planning budget for May was based on 36 wells serviced, but a total of 31 wells were actually serviced in May. The activity variance for total expenses for May would have been closest to: о о о $10,500 F $8,500 F $10,500 U Fixed element per Variable Element per month Well Serviced $ 4,500 $ 1,100 $ 600 $8,500 U $ 57,200 $ 31,000
Jase Manufacturing Co.'s static budget at 7,700 units of production includes $30,800 for direct labor and $3,080 for electric power. Total fixed costs are $41,500. At 10,700 units of production, a flexible budget would show a.variable costs of $47,080 and $41,500 of fixed costs b.variable costs of $33,880 and $41,500 c.variable and fixed costs totaling $75,380 d.variable costs of $47,080 and $57,669 of fixed costs
Millan Company provided you with the following data: Budgeted Fixed FOH costs $207,000; Actual FOH incurred $555,000; Variable FOH rate per direct labor hour $5; Fixed FOH rate per direct labor hour $3; Standard direct labor hours 68,000; Actual direct labor hours used 70,000. What is the total amount of idle capacity variance? $2,000 Unfavorable $2,000 Favorable$3,000 Unfavorable $8,000 Unfavorable None of the above
Miller and Sons' static budget for 10,500 units of production includes $43,700 for direct materials, $53,400 for direct labor, variable utilities of $8,000, and supervisor salaries of $15,700. A flexible budget for 12,900 units of production would show Round your final answer to the nearest dollar. Do not round interim calculations. Oa. total variable costs of $120,800 Ob. the same cost structure in total Oc. direct materials of $53,689, direct labor of S65,606, utilities of $9,829, and supervisor salaries of $18,840 Od. direct materials of $53,689, direct labor of $65,606, utilities of $9,829, and supervisor salaries of $15,700
Bramble Corp.produced 200000 units in 128000 direct labor hours. Production for the period was estimated at 267000 units and 141000 direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at O 195000 hours and 141000 hours. Ⓒ141000 hours and 128000 hours. 128000 hours and 128000 hours. O 195000 hours and 128000 hours.
A firm uses machine hours to allocate fixed overhead. During the period, budgeted fixed overhead is Rs. 30000. The budgeted machine hours is 100 hours for budgeted volume of 1000 units. The firm produced 1200 units consuming 150 hours and spent Rs. 28000 towards fixed overhead. The fixed overhead spending variance is Rs. 17000 favorable Rs. 17000 adverse Rs. 2000 favorable Rs. 8000 favorable
Could you help me solve the question in the picture below?
Your Corporation's flexible budget cost formula for supplies, a variable overhead cost, is $2.17 per unit of output. The company's flexible budget performance report for last month showed a $4,531 favorable variance for supplies. During that month, 16,500 units were produced. Budgeted activity for the month had been 20,000 units. What was the actual cost per unit paid for indirect materials? O $1.90 $2.17 $2.44 O $1.94 O $2.40
* Your answer is incorrect. Ayayai Company has prepared a graph of flexible budget data. At zero direct labor hours, the total budgeted cost line intersects the vertical axis at $18,400. At 8,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $68,000. How may the fixed and variable costs be expressed? (Round variable cost per direct labor hour to 2 decimal places, e.g. 1.25.) Total budgeted costs are $ 6.2 fixed plus $ 18400 per direct labor hour.