Question: |.Algers Company produces dry fertilizer. Compute the fixed overhead spending variance. At the beginning of the year, Algers had the following standard cost sheet: Direct materials (5 lbs. @ $2.60) $ 13.00 Direct labor (0.75 hr. @ $18.00) 13.50 Fixed overhead (0.75 hr. @ $4.00) 3.00 Variable overhead (0.75 hr. @ $3.00) 2.25 Standard cost per unit $ 31.75 Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: Units produced 53,000 Direct materials purchased 275,000 pounds at $2.50 per pound Direct materials used 270,200 pounds Direct labor Fixed overhead Variable overhead 40,100 hours at $17.95 per hour $1,61,600 $ 1,21,900 ||.Marcy Jones, Coronado & Hill Fabricators' purchasing manager, has just received the company's production budget for the first quarter. January February March Quarter Budgeted Production 18,086 32,955 29,223 80,264 Budgeted sales for April are 24,940 and its beginning inventory is 4,240. May month budgeted sales is 19,780. Company policy requires an ending finished goods inventory each month that will meet 17% of the following month's sales volume. Each brick requires 4 pounds of clay, and Marcy expects to pay $0.34 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 9% of the following month's production needs. Marcy expects to have 16,254 pounds of clay at a cost of $6,502 in inventory at the beginning of the year.Prepare Coronado & Hill's direct materials purchases budget for the first quarter.
Question: |.Algers Company produces dry fertilizer. Compute the fixed overhead spending variance. At the beginning of the year, Algers had the following standard cost sheet: Direct materials (5 lbs. @ $2.60) $ 13.00 Direct labor (0.75 hr. @ $18.00) 13.50 Fixed overhead (0.75 hr. @ $4.00) 3.00 Variable overhead (0.75 hr. @ $3.00) 2.25 Standard cost per unit $ 31.75 Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: Units produced 53,000 Direct materials purchased 275,000 pounds at $2.50 per pound Direct materials used 270,200 pounds Direct labor Fixed overhead Variable overhead 40,100 hours at $17.95 per hour $1,61,600 $ 1,21,900 ||.Marcy Jones, Coronado & Hill Fabricators' purchasing manager, has just received the company's production budget for the first quarter. January February March Quarter Budgeted Production 18,086 32,955 29,223 80,264 Budgeted sales for April are 24,940 and its beginning inventory is 4,240. May month budgeted sales is 19,780. Company policy requires an ending finished goods inventory each month that will meet 17% of the following month's sales volume. Each brick requires 4 pounds of clay, and Marcy expects to pay $0.34 per pound of clay in the coming year. Company policy requires an ending direct materials inventory each month that will meet 9% of the following month's production needs. Marcy expects to have 16,254 pounds of clay at a cost of $6,502 in inventory at the beginning of the year.Prepare Coronado & Hill's direct materials purchases budget for the first quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
help with this questions
Transcribed Image Text:Question:
|.Algers Company produces dry fertilizer. Compute the fixed overhead
spending variance.
At the beginning of the year, Algers had the following standard cost
sheet:
Direct materials (5 lbs. @ $2.60)
$ 13.00
Direct labor (0.75 hr. @ $18.00)
13.50
Fixed overhead (0.75 hr. @ $4.00)
3.00
Variable overhead (0.75 hr. @ $3.00)
2.25
Standard cost per unit
$ 31.75
Algers computes its overhead rates using practical volume, which is
54,000 units. The actual results for the year are as follows:
Units produced
53,000
Direct materials purchased
275,000 pounds at $2.50 per pound
Direct materials used
270,200 pounds
Direct labor
Fixed overhead
Variable overhead
40,100 hours at $17.95 per hour
$1,61,600
$ 1,21,900
||.Marcy Jones, Coronado & Hill Fabricators' purchasing manager, has
just received the company's production budget for the first quarter.
January
February
March
Quarter
Budgeted Production
18,086
32,955 29,223
80,264
Budgeted sales for April are 24,940 and its beginning inventory is 4,240.
May month budgeted sales is 19,780. Company policy requires an
ending finished goods inventory each month that will meet 17% of the
following month's sales volume.
Each brick requires 4 pounds of clay, and Marcy expects to pay $0.34
per pound of clay in the coming year. Company policy requires an
ending direct materials inventory each month that will meet 9% of the
following month's production needs. Marcy expects to have 16,254
pounds of clay at a cost of $6,502 in inventory at the beginning of the
year.Prepare Coronado & Hill's direct materials purchases budget for
the first quarter.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education