Question
In: Accounting
Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 ? Materials used (kg) 400...
|
Original Budget |
Actual |
Flexible Budget |
|
|
Units Produced (in units) |
10,000 |
12,000 |
? |
|
Materials used (kg) |
400 |
700 |
? |
|
Material cost ($) |
8,000 |
See purchases |
? |
|
Direct Labour (hours) |
35,000 |
46,102 |
? |
|
Direct Labour ($) |
385,000 |
507,080 |
? |
|
Variable Overhead ($) |
350,000 |
419,161 |
? |
|
Fixed Overhead ($) |
160,000 |
161,000 |
? |
Other Information
Overhead is Allocated on Direct Labour Hours
During the year, 800 kg of materials were purchased for $5,000
Beginning Inventory: none
Ending Inventory: 100kg
Required:
Calculate the flexible budget amounts for all items.
Calculate the following variances
- Material Rate
- Material Efficiency
- Labour Price
- Labour Efficiency
- Variable Overhaed Rate
- Variable Overhead Efficiency
- Fixed Overhead Rate
- Fixed Overhead Production Volume
- Assume that the Material, Labour and Variable Overhead variances are inter-related. What is the most likely single cause of these variances. Briefly explain your answer.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 ? Materials used (kg) 400...
Original Budget
Actual
Flexible Budget
Units Produced (in units)
10,000
12,000
?
Materials used (kg)
400
700
?
Material cost ($)
8,000
See purchases
?
Direct Labour (hours)
35,000
46,102
?
Direct Labour ($)
385,000
507,080
?
Variable Overhead ($)
350,000
419,161
?
Fixed Overhead ($)
160,000
161,000
?
Other Information
Overhead is Allocated on Direct Labour Hours
During the year, 800 kg of materials were purchased for
$5,000
Beginning Inventory: none
Ending Inventory: 100kg
Required:
Calculate the flexible...
Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 Materials used (kg) 400 700...
Original Budget
Actual
Flexible Budget
Units Produced (in units)
10,000
12,000
Materials used (kg)
400
700
Material cost ($)
8,000
See purchases
Direct Labour (hours)
35,000
46,102
Direct Labour ($)
385,000
507,080
Variable Overhead ($)
350,000
419,161
Fixed Overhead ($)
160,000
161,000
Other Information
Overhead is Allocated on Direct Labour Hours
During the year, 800 kg of materials were purchased for
$5,000
Beginning Inventory: none
Ending Inventory: 100kg
Required:
Calculate the flexible budget amounts for all
items.
Calculate the...
Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 Materials used (kg) 400 700...
Original Budget
Actual
Flexible Budget
Units Produced (in units)
10,000
12,000
Materials used (kg)
400
700
Material cost ($)
8,000
See purchases
Direct Labour (hours)
35,000
46,102
Direct Labour ($)
385,000
507,080
Variable Overhead ($)
350,000
419,161
Fixed Overhead ($)
160,000
161,000
Other Information
Overhead is Allocated on Direct Labour Hours
During the year, 800 kg of materials were purchased for
$5,000
Beginning Inventory: none
Ending Inventory: 100kg
Required:
Calculate the flexible budget amounts for all
items.
Calculate the...
Variances Original Budget Actual Flexible Budget Units Produced (in units) 10,000 12,000 ? Materials used (kg)...
Variances
Original Budget
Actual
Flexible Budget
Units Produced (in units)
10,000
12,000
?
Materials used (kg)
400
700
?
Material cost ($)
8,000
See purchases
?
Direct Labour (hours)
35,000
46,102
?
Direct Labour ($)
385,000
507,080
?
Variable Overhead ($)
350,000
419,161
?
Fixed Overhead ($)
160,000
161,000
?
Other Information
Overhead is Allocated on Direct Labour Hours
During the year, 800 kg of materials were purchased for
$5,000
Beginning Inventory: none
Ending Inventory: 100kg
Required:
Calculate the...
Answer must be typed in word or in excel Original Budget Actual Units produced 1,000 units...
Answer must be typed in word or in excel
Original Budget
Actual
Units produced
1,000 units
970 units
Materials (kg)
400 kg
409 kg
Material Costs
$8,000
See other info
Direct Labour
(Hours)
36,000 hours
34,010 hours
Direct Labour Costs
$385,000
$365,750
Variable Overhead Costs
$255,000
$245,000
Fixed Overhead Costs
$160,000
$165,000
Other Information
Overhead is Allocated on Direct Labour Hours
During the year, 500 kg of materials were purchased for
$9,000
Beginning Inventory: none
Ending Inventory: 91kg
Required:
Calculate...
A. Complete a flexible budget for 20,000 units produced. Use the following information at a production...
A. Complete a flexible budget for 20,000 units produced. Use the
following information at a production level of 15,000 units to
complete the flexible budget:
Budgeted units
15,000
Revenue
$1,500,000
Expenses:
Wages and Salaries ($200,000 + $10Q)
$350,000
Utilities (variable)
$300,000
Depreciation (fixed)
$200,000
Total expenses
$850,000
Net operating income
$650,000
Q = units produced
Budgeted units
20,000
Revenue
Expenses:
Wages and Salaries ($200,000 + $10Q)
Utilities (variable)
Depreciation (fixed)
Total expenses
Net operating income
B. Calculate the activity variances...
Barry Company budgeted the cost of materials for August to be $60,000 for 10,000 units produced....
Barry Company budgeted the cost of materials for August to be
$60,000 for 10,000 units produced. Barry used the following
standard cost per unit to prepare the August budget:
2 ounces of materials at $3.00 per ounce
In August, Barry produced 8,000 units at a total cost of
$49,280. Each unit required 2.2 ounces of
materials. What is the materials usage variance
for August?
A.
$4,800 U
B.
$7,200 U
C.
$1,280 U
D.
$3,520 U
E.
$10,720 U
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...
The following information describes actual production activities of the Oliver Corp.: Raw materials used …………………… 12,000...
The following information describes actual production activities
of the Oliver Corp.: Raw materials used …………………… 12,000 lbs. at
$2.50 per lb. Factory payroll ………………………... 3,500 hours for a total
of $45,500 15,000 units were completed during the year Budgeted
standards for each unit produced: 1 lb. of raw material at $2.25
per lb. 15 minutes of direct labor at $12.50 per hour Compute the
direct materials price and quantity and the direct labor rate and
efficiency variances. Indicate whether each...
Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials...
Bender Corporation produced 100 units of Product AA. The total
standard and actual costs for materials and direct labor for the
100 units of Product AA are as follows:
Materials:
Standard
Actual
Standard: 220 pounds at $3.00 per pound
$660
Actual: 230 pounds at $2.80 per pound
$644
Direct labor:
Standard: 400 hours at $15.00 per hour
6,000
Actual: 378 hours at $16.50 per hour
6,237
2. Refer...
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