Homework Help is Here – Start Your Trial Now!
Business
Accounting
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?

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...
See similar textbooks
icon
Related questions
Question
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?
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS