Rhett Corporation provides the following information for 2020: 20 Budgeted manufacturing overhead costs $1,200,000 Budgeted direct manufacturing labor-hours 20,000 hours Actual manufacturing overhead costs $1,250,000 Actual direct manufacturing labor-hours 25,000 hours 1.200100 201000 The following information for a job at 40 Philadelphia Company: Actual direct materials costs $ 6,000 Actual direct manufacturing labor 200 hours Actual direct manufacturing labor rate $ 56 per hour 7) Calculate the total manufacturing costs of a job at 40 Philadelphia Company using actual costir 8) Calculate the total manufacturing costs of a job at 40 Philadelphia
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Rhett Corporation provides the following information for 2020:
20
Budgeted
Actual manufacturing overhead costs $1,250,000
Actual direct manufacturing labor-hours 25,000 hours
1.200100 201000
The following information for a job at 40 Philadelphia Company:
Actual direct materials costs $ 6,000 Actual direct manufacturing labor 200 hours
Actual direct manufacturing labor rate $ 56 per hour
7) Calculate the total manufacturing costs of a job at 40 Philadelphia Company using actual costir 8) Calculate the total manufacturing costs of a job at 40 Philadelphia Company using normal costa
![Rhett Corporation provides the following information for 2020:
Budgeted manufacturing overhead costs $1,200,000
Budgeted direct manufacturing labor-hours 20,000 hours
Actual manufacturing overhead costs $1,250,000
Actual direct manufacturing labor-hours 25,000 hours
20
1.200100
The following information for a job at 40 Philadelphia Company:
250,00
Actual direct materials costs $ 6,000
Actual direct manufacturing labor 200 hours
Actual direct manufacturing labor rate $ 56 per hour
7) Calculate the total manufacturing costs of a job at 40 Philadelphia Company using actual costir
8) Calculate the total manufacturing costs of a job at 40 Philadelphia Company using normal cost
9) Which of the following statements about normal costing is true?
A) Direct costs and indirect costs are traced using an actual rate.
B) Direct costs and indirect costs are traced using budgeted rates.
C) Direct costs are traced using a budgeted rate, and indirect costs are allocated using an act
D) Direct costs are traced using an actual rate, and indirect costs are allocated using a budge
10) Actual costs are:
A) the costs incurred
B) budgeted costs
C) estimated costs
D) forec
Answer the following questions (11-14) using the information below:
X corporation produces and sells a decorative pillow. In 2020, it produced 2,000 units an
1,750 at an average selling price of $75 per unit. The following additional informationr
corporation for 2020:
Beginning inventory
Variable manufacturing costs
Variable marketing costs
Fixed manufacturing costs
Administrative expenses, all fixed
$20.00 per unit
$ 3.00 per unit
$ 7.00 per unit
$15.00 per unit
11) What is cost of goods sold per unit using variable costing?
B) $23
A) $20
C) $30
D) $45
12) What is cost of goods sold using absorption costing?
B) $40,000
C) $47,250
A) $35,000
D) $54,000
13) What is contribution margin using variable costing?
B) $91,000
C) $104,000
A) $96,250
D) $110,000
14) What is operating income using variable costing?
A) $52,500
B) $78,750
C) $65,750
D) $47,000
15) Budgeted costs are:
A) the costs incurred this year
C) predicted or forecasted costs
B) the costs incurred las
D) competitor's costs
- sector companies purchase materials and components and conve
16),
goods.
A) Merchandising
C) Manufacturing
B) Service
D) Professional](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F388108fa-6dfe-4878-99e1-aad4056ae194%2F2fcb3865-ea38-4b78-9ca4-4fe557037443%2F6wij0kn_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)