Question
In: Accounting
Acme Company’s production budget for August is 18,900 units and includes the following component unit costs:...
Acme Company’s production budget for August is 18,900 units and includes the following component unit costs: direct materials, $7.2; direct labor, $11.4; variable overhead, $5.4. Budgeted fixed overhead is $46,000. Actual production in August was 21,840 units. Actual unit component costs incurred during August include direct materials, $9.60; direct labor, $10.80; variable overhead, $6.20. Actual fixed overhead was $48,900. The standard fixed overhead application rate per unit consists of $2.2 per machine hour and each unit is allowed a standard of 1 hour of machine time. Required: Calculate the fixed overhead budget variance and the fixed overhead volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Solutions
Expert Solution
- Requirement
|
Fixed Overhead Production Budget Variance |
||||||
|
( |
Budgeted Fixed Overhead |
- |
Actual Fixed Overhead incurred |
) |
||
|
( |
$ 46,000.00 |
- |
$ 48,900.00 |
) |
||
|
-2900 |
||||||
|
Variance |
$ 2,900.00 |
Unfavourable-U |
||||
|
Fixed Overhead Production Volume Variance |
||||||
|
( |
Standard Fixed Overhead or Fixed Overhead absorbed = 21840 units x 1 hrs x $ 2.20 |
- |
Budgeted Fixed Overhead |
) |
||
|
( |
$ 48,048.00 |
- |
$ 46,000.00 |
) |
||
|
2048 |
||||||
|
Variance |
$ 2,048.00 |
Favourable-F |
||||
ekkarill92 answered 4 months agoRelated Solutions
Acme Company’s production budget for August is 18,900 units and includes the following component unit costs:...
Acme Company’s production budget for August is 18,900 units and
includes the following component unit costs: direct materials,
$7.20; direct labor, $11.40; variable overhead, $5.40. Budgeted
fixed overhead is $46,000. Actual production in August was 21,840
units. Actual unit component costs incurred during August include
direct materials, $9.60; direct labor, $10.80; variable overhead,
$6.20. Actual fixed overhead was $48,900.
Required:
Prepare a performance report, including each cost component.
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Acme Company’s production budget for August is 18,100 units and includes the following component unit costs:...
Acme Company’s production budget for August is 18,100 units and
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Acme Company’s production budget for August is 19,500 units and includes the following component unit costs:...
Acme Company’s production budget for August is 19,500 units and
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Required:
Prepare a flexible budget that would be used to compare against
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1. Acme Company’s production budget for August is 17,600 units and includes the following component unit...
1. Acme Company’s production budget for August is 17,600 units
and includes the following component unit costs: direct materials,
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units. Actual unit component costs incurred during August include
direct materials, $8.50; direct labor, $9.10; variable overhead,
$6.90. Actual fixed overhead was $34,600. The standard direct
material cost per unit consists of 11 pounds of raw material at
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Innovation Inc.'s production budget for January is 35,000 units and includes the following component unit costs:...
Innovation Inc.'s production budget for January is 35,000 units
and includes the following component unit costs: direct materials,
$16; direct labor, $20; variable overhead, $12. Budgeted fixed
overhead is $70,000 (35,000 units × 1/2hour × $4unit). Actual
production in January was 36,000 units. Actual unit component costs
incurred during January include direct materials, $16.50; direct
labor, $18.90; variable overhead, $13.64. Actual fixed overhead was
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RTI Company’s master budget calls for production and sale of 18,200 units for $83,720, variable costs...
RTI Company’s master budget calls for production and sale of
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costs of $20,000. During the most recent period, the company
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for $85,200. During this same period, the company earned $25,200 of
operating income.
Required:
1. Determine the following for RTI Company: (Do not
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b....
RTI Company’s master budget calls for production and sale of 18,100 units for $81,450, variable costs...
RTI Company’s master budget calls for production and sale of
18,100 units for $81,450, variable costs of $30,770, and fixed
costs of $18,000. During the most recent period, the company
incurred $34,100 of variable costs to produce and sell 18,000 units
for $84,000. During this same period, the company earned $23,000 of
operating income.
QUESTIONS:
1. Determine the following for RTI Company: (Do not
round intermediate calculations. Round your answers to the nearest
whole dollar.)
a. Flexible-budget operating income.
b....
RTI Company’s master budget calls for production and sale of 19,300 units for $98,430; variable costs...
RTI Company’s master budget calls for production and sale of
19,300 units for $98,430; variable costs of $44,390; and fixed
costs of $18,600. During the most recent period, the company
incurred $33,300 of variable costs to produce and sell 18,600 units
for $86,300. During this same period, the company earned $26,300 of
operating income. (Do not round intermediate calculations.
Round final answer to the nearest whole dollar.)
Required:
1.
Determine the following for RTI Company:
a.
Flexible-budget operating income.
b....
1)A company’s flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and...
1)A company’s flexible budget for 12,000 units of production
showed sales, $48,000; variable costs, $18,000; and fixed costs,
$16,000. The variable costs expected if the company produces and
sells 16,000 units is:
Multiple Choice
$48,000.
$64,000.
$40,000.
$24,000.
$18,000.
2)A company’s flexible budget for 12,000 units of production
showed sales, $48,000; variable costs, $18,000; and fixed costs,
$16,000. The contribution margin expected if the company produces
and sells 16,000 units is:
Multiple Choice
$48,000.
$64,000.
$40,000.
$24,000.
3) =
Hassock...
Martinez Company’s relevant range of production is 10,300 units to 15,300 units. When it produces and sells 12,800 units, its unit costs are as follows:
Martinez Company’s relevant range of production is 10,300 units to 15,300 units. When it produces and sells 12,800 units, its unit costs are as follows:
AmountPer Unit
Direct materials
$
5.60
Direct labor
$
3.10
Variable manufacturing overhead
$
1.40
Fixed manufacturing overhead
$
3.60
Fixed selling expense
$
2.60
Fixed administrative expense
$
2.20
Sales commissions
$
1.20
Variable administrative expense
$
0.45
13.
If the selling...
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