Question list Question 1 Question 2 The Sullivan Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor: (Click the icon to view the standards.) The number of finished units budgeted for January 2020 was 9,940; 9,900 units were actually produced. (Click the icon to view actual data.) Direct materials (purchases) Direct materials (usage) Direct manufacturing labor Next determine the formula and calculate the costs for the flexible budget. Actual input Direct materials Direct manufacturing labor 99,400 97,500 4,900 $ x $ $ x $ D 4.90 4.90 30.00 x X Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 99,400 lb., at a total cost of $506,940. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Read the requirements. = $ 487,060 = $ 477,750 = $ 147,000 Budgeted price = Flexible budget cost =

Question list Question 1 Question 2 The Sullivan Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor: (Click the icon to view the standards.) The number of finished units budgeted for January 2020 was 9,940; 9,900 units were actually produced. (Click the icon to view actual data.) Direct materials (purchases) Direct materials (usage) Direct manufacturing labor Next determine the formula and calculate the costs for the flexible budget. Actual input Direct materials Direct manufacturing labor 99,400 97,500 4,900 $ x $ $ x $ D 4.90 4.90 30.00 x X Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 99,400 lb., at a total cost of $506,940. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Read the requirements. = $ 487,060 = $ 477,750 = $ 147,000 Budgeted price = Flexible budget cost =

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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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

- The Sullivan Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor:
standard:
Direct materials: 10 lb. at $4.90 per lb.
Direct manufacturing labor:0.5 hour at $30 per hour
$49.00
15.00
The number of finished units budgeted for January 2020 was 9,940; 9,900 units were actually produced.
Actual data: Actual results in January 2020 were as follows:
Direct materials: 97,500 lb. used
Direct manufacturing labor: 4,900 hours
$155,575

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