Subject: general Accounting Rainbow Manufacturing uses flexible budgets for planning. At a standardcapacity of 15,000 units, their budgeted manufacturing overheadconsists of $45,000 variable and $180,000 fixed costs. If actual overheadcosts were $226,500 for 16,000 units produced, what is the differencebetween actual and budgeted costs?a. $2,500 unfavorableb. $1,500 favorablec. $3,500 favorabled. $3,500 unfavorable

Step 1: Define Flexible BudgetA flexible budget is a type of budget that adjusts to changes in…

Answered: Rainbow Manufacturing uses flexible…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 15EA: Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per...

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Judges Gavel uses this information when preparing their flexible budget: direct materials of $3 per unit, direct labor of $2.50 per unit, and manufacturing overhead of $1.25 per unit. Fixed costs are $49,000. What would be the budgeted amounts for 33,000 and 35,000 units?
Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcoming year. Past trends have indicated the following dollars were spent at three different levels of output: In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as: a. semivariable, fixed, and variable, respectively. b. variable, fixed, and variable, respectively. c. semivariable, semivariable, and semivariable, respectively. d. variable, semivariable, and semivariable, respectively.
Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Vaughn Manufacturing uses flexible budgets. At normal capacity of 15000 units, budgeted manufacturing overhead is: $90000 for variable costs and $180000 for fixed costs. If Vaughn had actual overhead costs of $225000 for 20000 units produced, what is the difference between actual and budgeted costs? O $75000 unfavorable. O $75000 favorable. O$300000 favorable. O $225000 unfavorable.
Vaughn Manufacturing uses flexible budgets. At normal capacity of 22000 units, budgeted manufacturing overhead is: $45100 for variable costs and $270000 for fixed costs. If Vaughn Manufacturing had actual overhead costs of $318800 for 25000 units produced, what is the difference between actual and budgeted costs? (do not round intermediate calculation.) O $2450 favorable O$7350 unfavorable O$9800 favorable O $2450 unfavorable
At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30,000. At 10,000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $90,000. Fixed and variable costs may be expresses as.
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Doorstop Manufacturing uses flexible budgets to manage its operations. Budgeted manufacturing overhead is $48,000 for variable costs and $270,000 for fixed costs at normal capacity of 16,000 units. If Doorstop had actual overhead costs of $327,000 for 18,000 units produced, what is the difference between actual and budgeted costs? A. $3,000 unfavorable B. $9,000 unfavorable C. $3,000 favorable D. $12,000 favorable
Dealer Enterprises (DE) anticipated that 100,000 process hours would be worked during an upcoming accounting period when, in fact, 108,000 hours were actually worked. One of the company's cost functions is expressed as follows: Y = $18PH + $800,000 where PH is defined as process hours What budgeted dollar amount would appear in DE's static budget and flexible budget for the preceding cost function?
Beta Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per luxury wallet are $41, $5, and $11, respectively. Assume all three direct-cost items shown are variable costs. The president is pleased with the following performance report: Direct materials Direct manufacturing labor Direct marketing (distribution) labor OA. 10,000 Actual Costs $373,500 48,600 103,500 What was the quantity of luxury wallets planned in the sales budget? B. 9,110 O C. 9,720 D. 9,410 Static Budget $410,000 50,000 110,000 Variance $36,500 F 1,400 F 6,500 F

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