Fournier Fixtures produces a variety of manufactured Items for the home and building Industry. The company produces only when itreceives orders and, therefore, has no Inventories. The following Information is available for the current month:sales revenueLessVariable costsMaterialsDirect laborVariable overheadVariable marketing and administrativeTotal variable costsContribution marginLessFixed costsManufacturing overheadMarketingAdministrativeTotal fixed costsOperating profitsSales revenueVariable costs:MaterialsDirect laborVariable overheadVariable marketing and administrativeTotal variable costsContribution marginFixed costs:Manufacturing overheadMarketingAdministrativeTotal fixed costsOperating profitsFournier FixturesSales Activity VarianceFlexible BudgetRequired:Prepare a sales activity variance analysis for Fournier Fixtures.Note: Do not round Intermediate calculations. Indicate the effect of each varlance by selecting "F" for favorable, or "U" forunfavorable. If there is no effect, do not select either option.$$$$00Actual (based onactual orders for428,400 units)$ 8,139,600002,675,400243,0001,242,400886,000$ 5,046,800$ 3,092,8001,677,000607,600417,000$ 2,701,600$ 391,200Master Budget(based onbudgeted ordersfor 382,500units)$ 7,650,000Sales ActivityVariance2,375,000223,0001,102,000796,000$ 4,496,000$ 3,154,0001,710,000590,000455,000$ 2,755,000$ 399,000Master Budget$SSS0000

The term "sales price variation" describes the discrepancy between a company's anticipated price for…

Answered: ournier Fixtures produces a variety of…

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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Required information [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 4 pounds at $9.00 per pound Direct labor: 3 hours at $15 per hour Variable overhead: 3 hours at $6 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses $36.00 45.00 18.00 $ 99.00 Fixed Cost per Month $ 210,000 $ 120,000 Variable Cost per Unit Sold $ 13.00 $ 4.00 The planning budget for March was based on producing and selling 26,000 units. However, during March the company actually produced and sold 31,000 units and incurred the following costs: a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b.…
Sunland Co. gathered the following information on power costs and factory machine usage for the last six months: Month January February March April May June (a) Power Cost $28,390 (b) 36,069 32,895 26,235 (c) 23,890 20,700 Your answer is correct. Variable power costs $ Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers. eTextbook and Media Your answer is correct. Factory Machine Hours What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.) Fixed power costs $ eTextbook and Media 15,800 21,400 Total power cost $ 18,700 High 15,100 13,500 What is the estimated fixed power cost each month? 10,500 1.41 5,895 per factory machine hour Low 5,895 If it is estimated that 13,800 factory machine hours will be run in July, what is the expected total power cost for July?
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Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 127,000 units of each product. Its unit costs for each product at this level of activity are given below: Direct materials Direct labour Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Cost per unit Contribution margin per pound Alpha $40 Alpha 37 24 Beta 32 29 32 $194 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Beta $ 24 30 22 12. What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.)…
Required information [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 4 pounds at $9.00 per pound Direct labor: 3 hours at $15 per hour Variable overhead: 3 hours at $6 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses $ 36.00 45.00 18.00 $ 99.00 Fixed Cost per Month $ 210,000 $ 120,000 Variable Cost per Unit Sold $ 13.00 $ 4.00 The planning budget for March was based on producing and selling 26,000 units. However, during March the company actually produced and sold 31,000 units and incurred the following costs: Variable overhead rate variance a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this…
Bowl Me Over, Inc (BMO) makes ceramic bowls They have a capacity of 50,000 bowls per period. Below is the selling and cost information for BMO. Sales and cost information Sales Direct Materials Direct labor Variable overhead Fixed overhead Total product cost Variable selling expense (commission of 4% of sales dollars Fixed selling expense BMO sales and cost information Per Unit 30 3.50 10 5 7 25.50 1.20 .50 Dollars 1,200,000 140,000 400,000 200,000 280,000 1,020,000 48,000 20,000 BMO has a defective part rate of 12%. They can sell the defective bowls for $3.00 each. Alternatively, they can rework the bowls and sell them for full price. The cost to rework the bowls is $2 for direct materials, $5 for direct labor and 1.50 for variable overhead. Analyze the incremental income of both options and recommend a course of action for BMO.
Meman

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