Question:326 ABC Company makes wallets and the planned production in units for the first three months of the following year are: January 32,850 February 30,750 March 37,650 Additional information is as follows: Average wage per hour $23.40 0.36 Direct labor hour for each wallet Required:Compute the total direct labor budget for the first quarter of the following year. Samano Industries has adopted the following production budget for the four quarters of 2020: Units Quarter 1 Quarter 2 Quarter 3 6,100 7,800 9,200 Quarter 4 10,200 Each unit requires 4 kg of raw materials costing $6 per kilogram. On December 31, 2019, the ending raw materials inventory was 1,900 kg. Management wants to have a raw materials inventory at the beginning of each quarter equal to 30% of the current quarter's production requirements. The production budget for the first quarter of 2021 will be 12,200 units. Prepare a direct materials purchases budget by quarters for 2020. Davidson Corp. produces a single product: fireproof safety deposit boxes for home use. The budget going into the current year anticipated a selling price of $61 per unit. Because of competitive pressures, the company had to cut selling prices by 10% during the year. Budgeted variable costs per unit are $38, and budgeted total fixed costs are $159,000 for the year. The anticipated sales volume for the year was 13,000 units. Actual sales volume was 5% less than budget. What was the sales price variance for the year?
Question:326 ABC Company makes wallets and the planned production in units for the first three months of the following year are: January 32,850 February 30,750 March 37,650 Additional information is as follows: Average wage per hour $23.40 0.36 Direct labor hour for each wallet Required:Compute the total direct labor budget for the first quarter of the following year. Samano Industries has adopted the following production budget for the four quarters of 2020: Units Quarter 1 Quarter 2 Quarter 3 6,100 7,800 9,200 Quarter 4 10,200 Each unit requires 4 kg of raw materials costing $6 per kilogram. On December 31, 2019, the ending raw materials inventory was 1,900 kg. Management wants to have a raw materials inventory at the beginning of each quarter equal to 30% of the current quarter's production requirements. The production budget for the first quarter of 2021 will be 12,200 units. Prepare a direct materials purchases budget by quarters for 2020. Davidson Corp. produces a single product: fireproof safety deposit boxes for home use. The budget going into the current year anticipated a selling price of $61 per unit. Because of competitive pressures, the company had to cut selling prices by 10% during the year. Budgeted variable costs per unit are $38, and budgeted total fixed costs are $159,000 for the year. The anticipated sales volume for the year was 13,000 units. Actual sales volume was 5% less than budget. What was the sales price variance for the year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question:326
ABC Company makes wallets and the planned production in units for
the first three months of the following year are:
January
32,850
February
30,750
March
37,650
Additional information is as follows:
Average wage per hour
$23.40
0.36
Direct labor hour for each wallet
Required:Compute the total direct labor budget for the first quarter of
the following year.
Samano Industries has adopted the following production budget for the
four quarters of 2020:
Units
Quarter 1 Quarter 2 Quarter 3
6,100
7,800
9,200
Quarter 4
10,200
Each unit requires 4 kg of raw materials costing $6 per kilogram. On
December 31, 2019, the ending raw materials inventory was 1,900 kg.
Management wants to have a raw materials inventory at the beginning
of each quarter equal to 30% of the current quarter's production
requirements. The production budget for the first quarter of 2021 will be
12,200 units. Prepare a direct materials purchases budget by quarters
for 2020.
Davidson Corp. produces a single product: fireproof safety deposit
boxes for home use. The budget going into the current year anticipated
a selling price of $61 per unit. Because of competitive pressures, the
company had to cut selling prices by 10% during the year. Budgeted
variable costs per unit are $38, and budgeted total fixed costs are
$159,000 for the year. The anticipated sales volume for the year was
13,000 units. Actual sales volume was 5% less than budget. What was
the sales price variance for the year?
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