Olive Company makes silver belt buckles. The company's master budget appears in the first column of the table.Required:Complete the table by preparing Olive's flexible budget for 5,800, 7,800, and 8,800 units.Note: Round your intermediate calculations to 2 decimal places.Master Budget Flexible Budget Flexible Budget Flexible Budget(6,800 Units)(5,800 Units)Direct materials$2,040Direct laborVariable manufacturing overhead3,4002,720Fixed manufacturing overhead17,600Total manufacturing cost$25,760(7,800 Units)(8,800 Units)

First, let's determine the following using the date for Master Budget:Direct Material Cost/ Unit =…

Answered: Olive Company makes silver belt…

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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Zeke's Bikes uses a standard cost system and provides the following information: Standards: Static budget variable overhead $5,040.00. Static budget fixed overhead $20,900.00. Static budget direct labor hours 400 hours. Static budget number of units 25,600 units. Static budget direct labor hours 0.035 hours per unit. Actual: Number of units produced 25,000. Actual variable overhead $5,220.00 Actual fixed overhead $23,600.00. Actual direct labor hours 520. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the variable and fixed overhead allocation rates.
A company offers three products, A,B,C The current budget for the upcoming accounting period is presented below, by product: A B C # of units 18 12 30 Selling price per unit ($) 75 50 60 Variable cost per unit ($) 25 20 15 Fixed costs (total $) 500 360 900 There is a different customer market for each of these products. Fixed costs reflect product-specific machinery. Required 1. Identify which of the two methods to compute the break-even point best suits this scenario. 2. Describe why the method you identified in (1) best suits this scenario. 3. Compute the break-even point in units using this method.
Olive Company makes silver belt buckles. The company's master budget appears in the first column of the table. Required: Complete the table by preparing Olive's flexible budget for 4,100, 6,100, and 7,100 units. Note: Round your intermediate calculations to 2 decimal places. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing cost Master Budget Flexible Budget (5,100 Units) (4,100 Units) $ 1,020 3,060 1,530 18,200 23,810 $ Flexible Budget (6,100 Units) Flexible Budget (7,100 Units)
Blue Pants & Co. manufactures slacks and jeans under a variety of brand names, such as Blue Easy and Tracy Jeans. Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Blue Easy and Tracy Jeans shows estimated sales of 33,960 and 65,540 pairs, respectively, for May. The finished goods inventory is assumed as follows: Blue Easy Tracy Jeans May 1 estimated inventory 1,520 1,850 May 31 desired inventory 560 2,310 Assume the following direct labor data per 10 pairs of Blue Easy and Tracy Jeans for four different sewing operations: Direct Labor per 10 Pairs Blue Easy Tracy Jeans Inseam 20 minutes 14 minutes Outerseam 24 17 Pockets 8 10 Zipper 11 Total 63 minutes 48 minutes a. Prepare a production budget for May. BLUE PANTS & CO. Production Budget May (Assumed Data) Blue Easy (Units) Tracy Jeans (Units) Expected units to be sold Plus May 31 desired inventory Total units Less May 1 estimated inventory Total units to be produced
Flexible Budget for Various Levels of Activity Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per DirectLabor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 90,000 direct labor hours. Required:
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Need help with the Manufacturing Overhead budget and Operating Expenses budget. I included what i have so far.
Flexible Budget for Various Levels of Activity Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per DirectLabor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 90,000 direct labor hours. Required: 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. Palladium Inc. Overhead Budget For the Coming Year Variable costs: Rate per Hour Activity Level90,000 Hours Maintenance $fill in the blank 336531fff03bfc2_1 $fill in the blank 336531fff03bfc2_2 Power fill in the blank 336531fff03bfc2_3 fill in the blank 336531fff03bfc2_4 Indirect labor fill in the blank 336531fff03bfc2_5 fill in the…
Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Budgeted Cost $ 147,000 145,200 Allocation Base Machine hours (MH) Direct labor hours (DLH) Budgeted Usage 9,800 MH 3,300 DLH Required: 1. Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. 2. The company reports the following actual production usage data. Compute the overhead cost per unit for each model. Voltage 2.0 MH 2.0 DLH EasyRider 4.0 MH 0.5 DLH 3. The company reports additional information below. For each model, compute the product cost per unit. Machine hours per unit Direct labor hours per unit Selling Price $ 290 195 Per Unit Voltage EasyRider Direct Materials $ 108 98 4. For each model, compute gross profit per unit (selling price per unit minus product cost per unit). Direct Labor $ 47 20 Complete this question by entering your answers…

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