Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $850 per month plus $83 per job plus $16 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in September to be 24 jobs and 143 meals, but the actual activity was 20 jobs and 140 meals. The actual cost for catering supplies in September was $4,550. The catering supplies in the planning budget for September would be closest to: Multiple Choice O O O $5,400 $5,130 $4,550 $4,750

Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $850 per month plus $83 per job plus $16 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in September to be 24 jobs and 143 meals, but the actual activity was 20 jobs and 140 meals. The actual cost for catering supplies in September was $4,550. The catering supplies in the planning budget for September would be closest to: Multiple Choice O O O $5,400 $5,130 $4,550 $4,750

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please help me. Thankyou.
Becker Bikes manufactures tricycles. The company expects to sell 380 units in May and 510 units in June. Beginning and ending finished goods for May are expected to be 110 and 75 units, respectively. June's ending finished goods are expected to be 85 units. The company's variable overhead is $4.00 per unit produced and its fixed overhead is $4,500 per month. Compute Becker's manufacturing overhead budget for May and June. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Budgeted manufacturing overhead May June
Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $460 per month plus $106 per job plus $26 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in December to be 16 jobs and 126 meals, but the actual activity was 10 jobs and 109 meals. The actual cost for catering supplies in December was $4,850. The spending variance for catering supplies in December would be closest to: Multiple Choice O O O $582 U $582 F $496 U $496 F
J&J Co. provides house cleaning services. The company uses the number of jobs to measure activity. At the beginning of March, the company budgeted for 60 jobs, but the actual number of jobs turned out to be 70. Wages and salaries expense is a mixed cost. Supplies expense is a variable cost. Transportation expense is a fixed cost. Here is a report comparing the actual vs. budgeted revenues and costs for the month of March: What is the amount of Supplies Expense in the Flexible Budget?
Ceder Company has compiled the following data for the upcoming year: Sales are expected to be 16,000 units at $52 each. Each unit requires 4 pounds of direct materials at $2.40 per pound. Each unit requires 2.1 hours of direct labor at $13 per hour. Manufacturing overhead is $4.90 per unit. Beginning direct materials inventory is $5,400. Ending direct materials inventory is $6,950. Selling and administrative costs totaled $138,720. Determine Ceder's budgeted cost of goods sold. Complete Ceder's budgeted income statement.
Gloves and mittens are two related goods made by Kettle Factory. The overall manufacturing overhead budget is $1,050,000, with 600,000 direct labor hours expected. Glove manufacture is expected to take 375,000 direct labor hours, while mitten production will take 225,000 direct labor hours. Round your answers to two decimal places, if necessary. a. Determine the single plantwide factory overhead rate based on direct labor hours.$fill in the blank 1 per direct labor hour b. How much is the factory overhead cost per pair of gloves if each pair requires 2 hours to produce?$fill in the blank 2 c. How much is the factory overhead cost per pair of mittens if each pair takes 1.5 hours to produce?$fill in the blank 3 d. How much total factory overhead will be allocated to glove production if 187,500 pairs are budgeted and 190,000 pairs are actually produced during the period? Use your answer from (b) above.$fill in the blank 4 e. How much total factory overhead will be allocated to mitten…
The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year. The following information was taken from the annual budget: Direct labor hours 84,000 Machine hours 120,000 Manufacturing costs: Direct labor $525,000 Direct materials 180,000 Indirect labor 75,000 Electric power 48,000 Payroll taxes 12,600 Machine maintenance and repair 9,200 Factory supplies 16,000 Factory heat and light 14,000 Depreciation, taxes, and insurance: Factory buildings 135,000 Machinery 320,200 $1,335,000 Actual results for the year follow: Direct labor hours 85,000 Machine hours 110,000 Manufacturing costs: Direct labor $ 540,000 Direct material 200,000 Factory overhead 625,000…
Blossom Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the brake repairs Hourly wage rate Payroll taxes Setup and downtime Cleanup and rest periods Fringe benefits (a) 1 hour $11 10% of wage rate 5% of actual labor time 25% of actual labor time 20% of wage rate Determine the standard direct labor hours per brake repairs. (Round answer to 2 decimal places, eg. 1.25.) Standard direct labor hours per brake repair hours F
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Course Cost per Student Instructor wages $ 2,930 Classroom supplies $ 270 Utilities $ 1,230 $ 65 Campus rent $ 5,200 Insurance…
The total factory overhead for Big Light Company is budgeted for the year at $1,163,800. Big Light manufactures two different products: night lights and desk lamps. Night lights are budgeted for 17,900 units. Each night light requires 2 hours of direct labor. Desk lamps are budgeted for 21,800 units. Each desk lamp requires 3 hours of direct labor. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base. Round your answer to two decimal places. $ per direct labor hour c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate determined in (b). Round your answers to two decimal places. Night lights $ Desk lamps $ per unit per unit
Mario’s Foods produces frozen meals, which it sells for $8 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company’s first two months in business: (picture chart 1) Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February. Prepare separate monthly income statements for January and for February, using the following: a. Absorption costing b. Variable costing Is operating income higher under absorption costing or variable costing in January? In February? Explain the pattern of differences in operating income based on absorption costing versus variable costing.
Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $550 per month plus $77 per job plus $13 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in September to be 18 jobs and 148 meals, but the actual activity was 14 jobs and 145 meals. The actual cost for catering supplies in September was $3,340. The catering supplies in the planning budget for September would be closest to: Multiple Choice O $3,890 $3,860 $3,340 $3,513