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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?

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 45BEB: Pilsner Inc. purchases raw materials on account for use in production. The direct materials...
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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?
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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