Question

In: Accounting

Cirilla's Weathervane Company manufactures weathervanes. The current year operating budget is based on the production of...

Cirilla's Weathervane Company manufactures weathervanes. The current year operating budget is based on the production of 9,500 weathervanes with 1.20 machine-hour allowed per weathervane. Variable manufacturing overhead is anticipated to be $280,000.
Actual production was 12,000 weathervanes using 12,500 machine-hours. Actual variable costs were $23.50 per machine-hour.
Required:
Calculate the variable overhead rate and the efficiency variances.

Solutions

Expert Solution


Related Solutions

Comfort Company manufactures pillows. The 2020 operating budget is based on production of 1,000 pillows with...
Comfort Company manufactures pillows. The 2020 operating budget is based on production of 1,000 pillows with 0.50 machine-hour allowed per pillow. Budgeted variable overhead per hour was $10. Actual production for 2020 was 750 pillows using 400 machine-hours. Actual variable costs were $9 per machine-hour. Required: Calculate the variable overhead spending and efficiency variances.
Quindo Table Company manufactures tables for schools. The 2015 operating budget is based on sales of...
Quindo Table Company manufactures tables for schools. The 2015 operating budget is based on sales of 44,000 units at $50 per table. Budgeted variable costs are $30 per unit, while fixed costs total $660,000. Actual sales were 46,000 units at $60 each. Actual variable costs were $33 per unit and fixed costs totaled $627,000. Required: Prepare a variance analysis report with both flexible-budget and sales-volume variances.                                                                  Quindo Table Company                                                                          Variance Analysis      Actual Results Flexible Variances Flexible Budget...
Lee Furniture Company manufactures office chairs. The 2020 operating budget is based on sales of 50,000...
Lee Furniture Company manufactures office chairs. The 2020 operating budget is based on sales of 50,000 units at $65 per chair. Budgeted variable costs are $40 per unit, fixed costs are $800,000, and operating income is projected to be $450,000. Regarding actual results, 54,000 units were sold at $70 each, actual variable costs were $38 per unit and fixed costs were $750,000. Resulting in 2020 actual income of $978,000. Required: Prepare a variance analysis report with both flexible-budget and sales-volume...
Pulham Company is preparing its direct labor budget for 2016 from the following production budget based...
Pulham Company is preparing its direct labor budget for 2016 from the following production budget based on a calendar year:  Each unit requires 2 hours of direct labor. The union contract provides for a 10% increase in wage rate to $11 per hour on October 1.  Prepare a direct labor budget for 2016. 
In the current year, Riflebird Company had operating income of $220,000, operating expenses of $175,000, and...
In the current year, Riflebird Company had operating income of $220,000, operating expenses of $175,000, and a long-term capital loss of $10,000. How do Riflebird Company and Roger, the sole owner of Riflebird, report this information on their respective Federal income tax returns for the current year under the following assumptions? If an amount is zero, enter "0". a. Riflebird Company is a proprietorship (Roger did not make any withdrawals from the business). Roger reports $ net operating profit and...
Review the attached budget report that includes current actuals, current budget, the annualized results based on...
Review the attached budget report that includes current actuals, current budget, the annualized results based on this year’s YTD, and the prior year’s actuals to use for trending purposes. Build next year’s budget based on the following assumptions and explain why you set the budget category amounts where you set them, use the checklist for building a budget in chapter 15 for help: The volumes, units of service (UOS), will increase by 5%, both Inpatient days and Outpatient procedures The...
The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data...
The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows: a. Estimated sales for July by sales territory: Maine: Backyard Chef 310 units at $700 per unit Master Chef 150 units at $1,200 per unit Vermont: Backyard Chef 240 units at $750 per unit Master Chef 110 units at $1,300 per unit New Hampshire: Backyard...
The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data...
The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows: a. Estimated sales for July by sales territory: Maine: Backyard Chef 310 units at $700 per unit Master Chef 150 units at $1,200 per unit Vermont: Backyard Chef 240 units at $750 per unit Master Chef 110 units at $1,300 per unit New Hampshire: Backyard...
The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data...
The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows: a. Estimated sales for July by sales territory: Maine: Backyard Chef 310 units at $700 per unit Master Chef 150 units at $1,200 per unit Vermont: Backyard Chef 240 units at $750 per unit Master Chef 110 units at $1,300 per unit New Hampshire: Backyard...
Which of the following orders is most effective for constructing an operating budget? A.1) Production budget...
Which of the following orders is most effective for constructing an operating budget? A.1) Production budget - 2) Personnel budget - 3) Sales Budget B.1) Personnel budget - 2) Production budget - 3) Sales Budget C.1) Sales Budget - 2) Personnel budget - 3) Production budget D.1) Sales Budget - 2) Production budget - 3) Personnel budget
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT