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. Round your answers to the nearest cent, if required. Nashler Company Flexible Budget Variable cost per unit Range of Production in Units 160,000 Range of Production in Units 170,000 Range of Production in Units 175,000 Production costs: Variable: Direct materials Direct labor Variable overhead: Supplies Maintenance Power Total variable costs Fixed overhead: Supervision Depreciation Other overhead

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. Round your answers to the nearest cent, if required. Nashler Company Flexible Budget Variable cost per unit Range of Production in Units 160,000 Range of Production in Units 170,000 Range of Production in Units 175,000 Production costs: Variable: Direct materials Direct labor Variable overhead: Supplies Maintenance Power Total variable costs Fixed overhead: Supervision Depreciation Other overhead

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Budgeted variable factory overhead costs: $354,000 Budgeted production in units: 60,000 units Budgeted time: 2 direct labor hours per unit Allocation base: direct labor hours Actual production in units: 58,600 units Actual variable factory overhead costs incurred: $338,500 Actual direct labor hours used: 119,000 hours CALCULATE VARIABLE FACTORY OVERHEAD ALLOCATED: Allocated: $__________ CALCULATE VARIABLE FACTORY OVERHEAD SPENDING (PRICE) VARIANCE :…
Performance Report Based on Budgeted and Actual Levelsof ProductionBowling Company budgeted the following amounts:Variable costs of production:Direct materials 3 pounds @ $0.60 per poundDirect labor 0.5 hr. @ $16.00 per hourVOH 0.5 hr. @ $2.20FOH:Materials handling $6,200Depreciation $2,600 At the end of the year, Bowling had the following actual costs for production of 3,800 units:Direct materials $ 6,800Direct labor 30,500VOH 4,200FOH:Materials handling 6,300Depreciation 2,600Required:1. Calculate the budgeted amounts for each cost category listed above for the 4,000budgeted units.2. Prepare a performance report using a budget based on expected production of 4,000units.3. Prepare a performance report using a budget based on the actual level of production of3,800 units.
The following information is available for the Danske Company: Denominator hours for May Actual hours worked during May Standard hours allowed for May Flexible budget fixed overhead cost Actual fixed overhead costs for May Danske Company had total underapplied overhead of $20,000. Additional information is as follows: Variable Overhead: Applied based on standard direct labor-hours allowed Budgeted based on standard direct labor-hours Fixed Overhead: Applied based on standard direct labor-hours allowed Budgeted based on standard dinect labon-hours $ 52,000 43,000 $ 40,000 32,000 What is the fixed overhead price (spending) variance for May? Multiple Choice $4,000 unfavorable 94.100 unfavorable
Required Information [The following information applies to the questions displayed below.] The fixed budget for 21,500 units of production shows sales of $559,000; variable costs of $64,500; and fixed costs of $142,000. If the company actually produces and sells 26,500 units, calculate the flexible budget Income. Sales Variable costs Contribution margin Fixed costs Income ------Flexible Budget-..... Variable Amount Total Fixed per Unit Cost $ 689,000 689,000 ------Flexible Budget at 21,500 units $ $ 0 0 26,500 units $ $ 0 0
Flexible Budget with Different Levels of ProductionBalboa Company budgeted the following amounts:Variable costs of production:Direct materials 3 pounds @ $1.30 per poundDirect labor 0.5 hr. @ $18.00 per hourVOH 0.5 hr. @ $3.40FOH:Materials handling $8,600Depreciation $4,350Required:Prepare a flexible budget for 4,000 units, 4,500 units, and 5,000 units
Flexible Budget for Various Levels of Activity Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per DirectLabor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Next year, Palladium expects production to require 90,000 direct labor hours. Required: 1. Prepare an overhead budget for the expected level of direct labor hours for the coming year. Palladium Inc. Overhead Budget For the Coming Year Variable costs: Rate per Hour Activity Level90,000 Hours Maintenance $fill in the blank 336531fff03bfc2_1 $fill in the blank 336531fff03bfc2_2 Power fill in the blank 336531fff03bfc2_3 fill in the blank 336531fff03bfc2_4 Indirect labor fill in the blank 336531fff03bfc2_5 fill in the…
Static and Flexible Budgets Graham Corporation used the following data to evaluate its current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit. Units sold Variable costs Fixed costs a. Prepare the actual income statement, flexible budget, and static budget. Do not use negative signs with any of your answers below. Actual Budgeted 1,180,000 1,200,000 2,200,000 2,400,000 1,875,000 1,837,000 Units sold Revenues Variable costs Contribution margin Fixed costs Operating income $ $0 $0 Actual Results Flexible Budget Static Budget $ 0 $ For questions b., c., and d., do not use negative signs with your answers. Select either U for Unfavorable or F for Favorable using the drop down box next to each of your variance answers. b. What is the static-budget variance of revenues? C. What is the flexible budget variance for variable costs? <¶► 0 0 $ 0 0 0 0 $ ◆ 0 0 $ 0 0 0 0 $ d. What is the flexible budget variance for fixed costs? 0 0 0 0 0 0
Bike-O-Rama produces two bike models: Voltage and EasyRider. Departmental overhead data follow. Department Fabricating Assembly Budgeted Cost $ 147,000 145,200 Allocation Base Machine hours (MH) Direct labor hours (DLH) Budgeted Usage 9,800 MH 3,300 DLH Required: 1. Compute departmental overhead rates using (a) machine hours to allocate budgeted Fabricating costs and (b) direct labor hours to allocate budgeted Assembly costs. 2. The company reports the following actual production usage data. Compute the overhead cost per unit for each model. Voltage 2.0 MH 2.0 DLH EasyRider 4.0 MH 0.5 DLH 3. The company reports additional information below. For each model, compute the product cost per unit. Machine hours per unit Direct labor hours per unit Selling Price $ 290 195 Per Unit Voltage EasyRider Direct Materials $ 108 98 4. For each model, compute gross profit per unit (selling price per unit minus product cost per unit). Direct Labor $ 47 20 Complete this question by entering your answers…
Multiple Production Department Factory Overhead Rate Method costs were budgeted as follows: The direct labor estimated for each production department was as follows: Pattern Department 2,000 direct labor hours Cut and Sew Department, 2, 500 Total direct labor hours records as follows: If required, round all per unit answers to the nearest cent, a. Determine the two production department factory overhead rates. b. Use the two production department factory overhead rates to determine the factory overhead per unit for each product.
Question 1 Not complete Direct material Direct labor Variable overhead Fixed overhead Total Using Flexible Budgets The following summary data are from a performance report for Sterling Company for May, during which 9,600 units were produced. The budget reflects the company's normal capacity of 10,000 units. Actual Cost Budget 9,600 10,000 units units $ $136,800 $140,000 $(3,200) Favorable Type Marked out of 6.25 Direct material $ Direct labor Variable overhead Fixed overhead Totals PFlag question $ Variances a. Prepare a new performance report using flexible budgeting. Round all amounts to the nearest dollar. Variance Actual Costs 277,200 280,000 (2,800) Favorable 98,400 96,000 2,400 Unfavorable 72,400 72,000 400 Unfavorable $584,800 $588,000 $(3,200) $ 0 $ Flexible Budget $ 0 $ $ b. Which of the two performance reports should Sterling Company management use to measure the company's operating efficiency in May? ◆ 0 Type ♦ + + ◆
The following data are given for Stringer Company: Budgeted production Actual production Materials: Standard price per ounce Standard ounces per completed unit Actual ounces purchased and used in production Actual price paid for materials Labor: Standard hourly labor rate Standard hours allowed per completed unit Actual labor hours worked Actual total labor costs 907 units 1,033 units $1.91 11 11,704 $23,993 $14.84 per hour 4.6 5,319.95 $81,129 Overhead: Actual and budgeted fixed overhead Standard variable overhead rate Actual variable overhead costs Overhead is applied on standard labor hours. Do not round interim calculations. Round your final answer to the nearest dollar. The direct materials price variance is $1,071,000 $28.00 per standard labor hour $148,959
Requirements 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Explain why the variances are favorable or unfavorable. 2. Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, foxed overhead cost variance, and foxed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fioxed overhead (FOH) variances, and then compute each variance amount. Actual overhead - (Actual hours x Standard price) (Actual hours - Standard hours allowed) x Standard price Actual overhead - Budgeted overhead Budgeted overhead - Allocated overhead = VOH cost variance %3D Data Table = VOH efficiency variance %3D |= FOH cost variance = FOH volume variance