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.

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...