Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Cost Formulas $16.20g $4,600 +$1.90g $5,400 +$0.00g Supplies $1,600 + $0.20g Equipment depreciation $18,700 +$2.90g Factory rent $8,400 $2,600 $13,300 +$0.60g Property taxes Factory administration The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below:

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Its Production Department's planning budget and flexible budget are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Cost Formulas $16.20g $4,600 +$1.90g $5,400 +$0.00g Supplies $1,600 + $0.20g Equipment depreciation $18,700 +$2.90g Factory rent $8,400 $2,600 $13,300 +$0.60g Property taxes Factory administration The Production Department planned to work 4,100 labor-hours in March; however, it actually worked 3,900 labor-hours during the month. Its actual costs incurred in March are listed below:

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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Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.40q Indirect labor $4,000 + $1.40q Utilities $5,300 + $0.30q Supplies $1,600 + $0.10q Equipment depreciation $18,500 + $3.00q Factory rent $8,200 Property taxes $2,500 Factory administration $13,600 + $0.60q The Production Department planned to work 4,400 labor-hours in March; however, it actually worked 4,200 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 70,480 Indirect labor $ 9,340 Utilities $ 7,010 Supplies $ 2,250 Equipment depreciation $ 31,100 Factory rent $ 8,600 Property taxes $ 2,500 Factory…
Geovanni Inc. uses standard costs to prepare its flexible budget. Standard and actual costs data for manufacturing overhead for producing 5,000 units of product are as follows: Standard and actual costs data for manufacturing overhead Costs Rate Allocation base per unit Variable overhead $8 per direct labor hour 2 hours Fixed overhead (based on 12,000 hours at 100% capacity) $3 per direct labor hour 2 hours Actual total overhead costs are as follows: Actual Total Overhead Costs Costs Amounts Total variable overhead costs $58,000 Total fixed overhead costs $20,000 Compute the fixed overhead cost variance. Group of answer choices -$7,000 favorable $10,000 unfavorable -$10,000 favorable $18,000 unfavorable
Top Dog Company has a budget with sales of 7,500 units and $3,400,000. Variable costs are budgeted at $1,850,000, and fixed overhead is budgeted at $970,000. What is the budgeted manufacturing cost per unit?
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Cost Formulas $16.30q $4,300 +$1.50g $5,300 +$0.40g $1.400+ $0.30q $18,200+ $2.70g $8,400 $13,800+ $0.60g $2,600 The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Direct labor Actual Cost Incurred in March $ 66,780 Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: $ 9,780 $ 7,370 $ 2,870 $ 29,000 $ 8.800 $ 2,600 $ 15,550 1. Prepare the Production…
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $331,200 Number of purchase orders Scheduling 206,700 Number of production orders Materials handling 450,000 Number of moves Product development 799,500 Number of engineering changes Production 1,521,400 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,030 290 1,340 13 2,100 1,600 Tape drives 2,500 175 600 8,400 3,900 Wire drives 11,200 730 3,600 22 10,400 2,800 The activity rate for the materials handling cost pool is O a. $81.23 per move Ob. $18.68 per move Oc. $72.79 per move Od. $172.97 per move
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $323,200 Number of purchase orders Scheduling 202,000 Number of production orders Materials handling 437,000 Number of moves Product development 700,700 Number of engineering changes Production 1,408,000 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,170 440 1,480 14 2,400 2,100 Tape drives 1,600 225 570 4 9,100 3,700 Wire drives 12,700 890 4,400 30 10,700 2,400 The activity rate for the procurement activity cost pool is a.$63.42 per purchase order b.$17.50 per purchase…
Toot Sweet Company budgeted the following costs for anticipated production for August: Advertising expenses $241,360 Manufacturing supplies 13,230 Power and light 39,450 Sales commissions 260,760 Factory insurance 22,970 Production supervisor wages 116,040 Production control wages 30,170 Executive officer salaries 246,000 Materials management wages 33,190 Factory depreciation 18,800 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Toot Sweet Company Factory Overhead Cost Budget For the Month Ending August 31 Variable factory overhead costs: Total variable factory overhead costs Fixed factory overhead costs: Total fixed factory overhead costs Total factory overhead costs
s Laval produces lighting fixtures. Budgeted information for its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Overhead cost Direct labor hours Machine hours Fabricating $ 1,260,000 Desk lamp 131,600 DLH 90,000 MH 28,000 DLH 72,500 MH Laval reports the following for one of its products, a desk lamp. Fabricating Department Number of Direct Labor Hours Units per Unit 6,000 4 DLH per unit Assembly $ 336,000 Machine Hours per Unit 3 MH per unit Required 1 Required 2 Required 3 Required: 1. Determine the plantwide overhead rate using 159,600 direct labor hours as the allocation base. 2. Determine the overhead cost per unit for the desk lamp using the plantwide overhead rate. 3. Compute departmental overhead rates based on machine hours in the Fabricating department and direct labor hours in the Assembly department. 4. Determine the overhead cost per unit for the desk lamp using the departmental overhead rates. Complete this question…
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $377,200 Number of purchase orders Scheduling $219,700 Number of production orders Materials handling $498,400 Number of moves Product development $780,800 Number of engineering changes Production $1,545,800 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,120 330 1,370 15 2,000 2,100 Tape drives 1,600 205 620 5 9,600 4,100 Wire drives 12,000 940 4,500 28 11,600 2,500 Determine the activity rate for production per machine…
Stupji Ltd uses activity based costing. The budgeted distribution costs for the next year are: Transport costs $2,631 Order processing $1,573 -------- Total distribution costs $4,204 It is estimated that in the next year, 325,000 orders will be processed, and that the delivery vehicles will travel 1,495,000 km. A customer has indicated that 138 orders, each of which will require a journey of 122 km for each order will be placed next year. To the nearest $, what is the distribution cost for this customer? a. $47,342 b. $38,891 c. $30,299 d. $1,785
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $356,700 Number of purchase orders Scheduling 245,900 Number of production orders Materials handling 481,200 Number of moves Product development 719,400 Number of engineering changes Production 1,487,000 Machine hours Number ofPurchaseOrders Number of ProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 3,940 270 1,350 12 1,600 1,800 Tape drives 1,900 185 590 6 9,600 4,400 Wire drives 11,300 880 3,600 28 11,300 2,000 The activity rate for the materials handling cost pool is a. $184.19 per move b. $20.81 per move c. $66.09 per…