Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries noinventories. The master budget calls for the company to manufacture and sell 122,000 liters at a budgeted price of $240 per liter thisyear. The standard direct cost sheet for one liter of the preservative follows.(2 pounds @ $15)(0.5 hours @ $46)Direct materials$30Direct labor23Variable overhead is applied based on direct labor hours. The variable overhead rate is $130 per direct-labor hour. The fixed overheadrate (at the master budget level of activity) is $65 per unit. All non-manufacturing costs are fixed and are budgeted at $2.3 million forthe coming year.esAt the end of the year, the costs analyst reported that the sales activity variance for the year was $732,000 unfavorable.RequiredPrepare a flexible budget for Paynesville for the year. (Enter your answers in thousands of dollars.) Prepare a Tiexibie buaget for PaynesVIIie for the year. (Enter your answers in thousanas or aollars.)PAYNESVILLE CORPORATIONFlexible Budget(thousands of dollars)Sales revenue$ 29,280,000Variable costs:MaterialsDirect laborVariable overheadcesNon-manufacturingTotal variable costs$4Contribution margin$ 29,280,000Fixed costs:Manufacturing overheadNon-manufacturingTotal fixed costsOperating profits$ 29 280 000

Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The inventories. The master budget calls for the company to manufacture and sell 122,000 liters at a budgeted price of $240 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials (2 pounds @ $15) (0.5 hours @ $46) $30 Direct labor 23 Variable overhead is applied based on direct labor hours. The variable overhead rate is $130 per direct-labor hour. The fixed overheac rate (at the master budget level of activity) is $65 per unit. All non-manufacturing costs are fixed and are budgeted at $2.3 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $732,000 unfavorable. Required Prepare a flexible budget for Paynesville for the year. (Enter your answers in thousands of dollars.)

Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The inventories. The master budget calls for the company to manufacture and sell 122,000 liters at a budgeted price of $240 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials (2 pounds @ $15) (0.5 hours @ $46) $30 Direct labor 23 Variable overhead is applied based on direct labor hours. The variable overhead rate is $130 per direct-labor hour. The fixed overheac rate (at the master budget level of activity) is $65 per unit. All non-manufacturing costs are fixed and are budgeted at $2.3 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $732,000 unfavorable. Required Prepare a flexible budget for Paynesville for the year. (Enter your answers in thousands of dollars.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ABC Pillow produces and sells animal pillow for $80.00 per unit. In the first month of operation, 3,000 units were produced and 2,250 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs Variable marketing costs Fixed manufacturing costs Administrative expenses, all fixed $12,000 per month Ending inventories: Direct materials $38 per unit $ 2 per unit $60,000 per month -0- WIP -0- Finished goods 750 units 11) What is gross margin when using absorption costing? A) $95,000 B) $109,500 C) $154,500 D) $49,500
Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 126,000 liters at a budgeted price of $270 per liter this year. The standard direct cost sheet for one liter of the preservative follows. Direct materials (2 pounds @ $17) $ 34 Direct labor (0.5 hours @ $50) 25 Variable overhead is applied based on direct labor hours. The variable overhead rate is $150 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $75 per unit. All non-manufacturing costs are fixed and are budgeted at $2.5 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $816,000 unfavorable. The following is the actual income statement (in thousands of dollars) for the year. Sales revenue $ 32,718 Less variable…
Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the year at $1,290,000, divided into two departments: Fabrication, $772,500, and Assembly, $517,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboats require three direct labor hours in Fabrication and two direct labor hours in Assembly. The bass boats require one direct labor hour in Fabrication and four direct labor hours in Assembly. Each product is budgeted for 7,500 units of production for the year. If required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year in each department. Fabrication direct labor hours Assembly direct labor hours b. Determine the departmental factory overhead rates for both departments. Fabrication per dlh Assembly per dlh c. Determine the factory overhead allocated per unit for each product using the department factory…
Haresh
Ahlia Company developed standard costs for direct material and direct labor. In 2021, Ahlia estimated the following standard costs for one of their major products, the 10-gallon plastic container. Budgeted quantity 0.10 pounds Budgeted price Direct materials $31 per pound Direct labor $16 per hour During June, Ahlia produced and sold 5,000 containers using 490 pounds of direct materials at an average cost per pound of $30 and 250 direct manufacturing labor- hours at an average wage of $15.25 per hour. Instructions: 0.05 hours 1. Compute the direct materials price variance. 2. Compute the direct manufacturing labor efficiency variance.
Sweet Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.0 ounces $ 3.00 per ounce $ 18.00 Direct labor 0.3 hours $ 11.00 per hour $ 3.30 Variable overhead 0.3 hours $ 9.00 per hour $ 2.70 The company reported the following results concerning this product in April. Originally budgeted output 3,600 units Actual output 3,200 units Raw materials used in production 21,000 ounces Purchases of raw materials 22,100 ounces Actual direct labor-hours 500 hours Actual cost of raw materials purchases $ 42,300 Actual direct labor cost $ 13,600 Actual variable overhead cost $ 3,800 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for April is:
Gloves and mittens are two related goods made by Kettle Factory. The overall manufacturing overhead budget is $1,050,000, with 600,000 direct labor hours expected. Glove manufacture is expected to take 375,000 direct labor hours, while mitten production will take 225,000 direct labor hours. Round your answers to two decimal places, if necessary. a. Determine the single plantwide factory overhead rate based on direct labor hours.$fill in the blank 1 per direct labor hour b. How much is the factory overhead cost per pair of gloves if each pair requires 2 hours to produce?$fill in the blank 2 c. How much is the factory overhead cost per pair of mittens if each pair takes 1.5 hours to produce?$fill in the blank 3 d. How much total factory overhead will be allocated to glove production if 187,500 pairs are budgeted and 190,000 pairs are actually produced during the period? Use your answer from (b) above.$fill in the blank 4 e. How much total factory overhead will be allocated to mitten…
. The total factory overhead for Landen Company is budgeted for the year at $675,000. Landen manufactures two drapery products: sheer curtains and insulated curtains. These products each require 6 direct labor hours (dlh) to manufacture. Each product is budgeted for 7,500 units of production for the year. What would the factory overhead allocated per unit for insulated curtains using the single plantwide factory overhead rate be? a.$15.00 b.$270.00 c.$45.00 d.$90.00
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for esch deportment. 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 Indirect labor Utilitics Supplies Equipment depreciation Factory rent Ргopсrty tакеs Factory adninistration $15.88g $8, 280 + $1.68g $6,400 + $e.seg $1,180 + $e.48g $23,0ee + $3.78g $8,400 $2,100 $11,700 + $1.9eg The Production Department planned to work 8,000 lebor-hours in March; however, it octually worked 8,400 lobor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $134,738 $ 19,860 $ 14,578 $ 4,988 $ 54, 88e $ 8,700 $ 2,100 $ 26,470 Direct labor Indirect labor lities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: 1. Prepare the Production…
The total factory overhead for Landen Company is budgeted for the year at $675,000. Landen manufactures two drapery products: sheer curtains and insulated curtains. These products each require 6 direct labor hours (dlh) to manufacture. Each product is budgeted for 7,500 units of production for the year. What would the factory overhead allocated per unit for insulated curtains using the single plantwide factory overhead rate be? a.$15.00 b.$270.00 c.$45.00 d.$90.00
A Company produces items to order and had the following budgeted overheads for the year on normal activity levels. Department Assembly Machining Painting Packing Labour: Budgeted Overheads Selling and administrative overheads are 10% of Factory Cost. The company received an order for 500 widgets, made as Batch 2024 and incurred the following costs. Assembly Dept: Machining Dept. Painting Dept. Packing Dept. Required: 36.000 86 000 40 000 30.000 Overhead Absorption Base 1500 per labour hours 2.500 per machine hours 1 800 per labour hours 1000 per labour hours 256 hours (2) $4.25 per hour 904 hours $2.50 per hour 180 hours) $3.25 per hour 350 hours @ $5.25 per hour Calculate the OAR's for each department. Calculate the total cost of the Batch showing clearly: i. Prime Cost ii. Factory Cost iii. Total Cost of the Batch
Compute the Total number of pounds of excess direct materials used for August