Pittman Framing's cost formula for its supplies cost is $1,040 per month plus $14 per frame. For the month of November, the company planned for activity of 614 frames, but the actual level of activity was 604frames. The actual supplies cost for the month was $9,200. The spending variance for supplies cost in November would be closest to:Multiple ChoiceО$296 FоО$296 U$436 F$436 U

Solution- To solve this problem, we need to calculate the spending variance for the supplies cost.…

Answered: Pittman Framing's cost formula for its…

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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Roger Company’ sells one product, and has provided the following variable and fixed estimates for budgetingpurposes.Variable element per unit Fixed element per monthRevenue $25Operating costs $4.75 $3,150For the month of August, it planned on selling 200 units, but actual units sold were 180 units. Actual revenuefor the month was $4,410 and actual operating costs were $3,865. c. Find the activity variance for revenue and operating costs for August. What would these variancesindicate? d. Find the revenue and spending variance for revenue and operating costs for August. What would thesevariances indicate?
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Petrus Framing's cost formula for its supplies cost is $2,300 per month plus $6 per frame. For the month of March, the company planned for activity of 861 frames, but the actual level of activity was 856 frames. The actual supplies cost for the month was $7,790. The activity variance for supplies cost in March would be closest to: rev: 06_29_2020_QC_CS-208650 Multiple Choice о O O O $324 U $30 F $324 F $30 U
The following labor standards have been established for a particular product: Standard labor - hours per unit of output 7.7 hours Standard labor rate $ 15.35 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 9,800 hours Actual total labor cost $ 148, 960 Actual output 1, 100 units What is the labor rate variance for the month? Multiple Choice $165 F $1,470 F $1,470 U $165 U
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Chhom Corporation makes a product whose direct labor standards are 0.4 hours per unit and $19.00 per hour. In November the company produced 1,800 units using 760 direct labor-hours. The actual direct labor cost was $13,300. The labor efficiency variance for November is: Multiple Choice $760 F $700 F $760 U $700 U
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JAR-174 tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,850 per month plus $2,884 per route plus $18 per passenger. The company expected in August to perform 89 routes and serve 255 passengers, but the actual activity was 95 routes and 270 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to: Multiple Choice O O $17,574 Favorable $30,590 Favorable $30,590 Unfavorable $13,016 Favorable $13 016 Unfavorable
Prepare a production budget for January and February Prepare a purchases budget in units for January. Prepare a manufacturing cost budget for January. Prepare a cash budget for January Prepare a contribution income statement for January.
Spree Party Lights overhead expenses are: Indirect material, pounds per unit Indirect material, cost per pound Indirect labor hours Indirect labor rate per hour Variable maintenance per unit Variable utilities per unit Supervisor salaries Maintenance salaries Insurance Depreciation Units to Produce Variable Costs Indirect Material Indirect Labor Maintenance Prepare a manufacturing overhead budget if the number of units to produce for January, February, and March are 2,400, 3,100, and 2,800, respectively. Spree Party Lights Manufacturing Overhead Budget For the Quarter Ending January - March January February 2,400 3,100 Utilities Total Variable Manufacturing Costs Fixed Costs 0.30 Supervisory Salaries Maintenance Salaries Insurance Depreciation Total Fixed Manufacturing Coats Total Manufacturing Overhead $2 $16.50 $0.75 $0.20 $11,000 $9,000 $3,000 $1,600 1,440 30,500 1.1900 11,000 5,000 3,000 1,500 24,600 67,020 1,860 51,150 620 53,955 11,000 9,000 3,000 1,000 24,400 10,355 March 2,1800…
The following information relates to a given department of Mervi Company for the first quarter of the year: Actual total overhead (fixed plus variable) P178,500 Budget formula: Total FOH Cost = P110,000 + P0.50/hr Total overhead application rate P1.50 per hour Spending variance (from three-way analysis) P8,000 unfavorable Volume variance (from two-way analysis) P5,000 favorable Each unit takes 5 hours to manufacture and the selling price is P4.50 per unit. Based on the overhead budget formula, how many units must be sold to generate P30,000 more than total budgeted overhead costs? Group of answer choices 55,000 27,500 35,000 70,000

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