Question
In: Accounting
Deluca Manufacturing prepared the following cost control report for the prior month: Planning Budget Actual Results...
Deluca Manufacturing prepared the following cost control report for the prior month: Planning Budget Actual Results Variances Direct labor hours 30,000 33,000 Direct materials $45,000 $55,000 $10,000 U Direct labor wages $480,000 $520,000 $40,000 U Maintenance $125,000 $136,000 $11,000 U Utilities $82,000 $86,000 $4,000 U Rent $65,000 $65,000 $0 Depreciation $27,000 $27,000 $0 Total: $824,000 $889,000 $65,000 U Direct materials and direct labor wages are variable costs; rent and depreciation are fixed costs; and maintenance and utilities are mixed costs. The fixed component of the budgeted maintenance cost is $35,000; the fixed component of the budgeted utilities cost is $13,000. 7. What is the spending variance for Utilities?
Please show me the work the calculations how you will solve this problem step by step
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Expert Solution
Ans: Budgeted variable cost for 30000 hours = $ 82000-13000 = $ 69000
Budgeted variable cost for 33000 hours = $ 69000x(33000/30000)
= $ 75900
Total Budgeted Cost = $ 75900+13000= $ 88900
Spending Variance = Budgeted Cost-Actual Cost
= $ 88900- 86000
= $ 2900(F)
ekkarill92 answered 1 year agoRelated Solutions
Below is the variance report Prior year Item Budget Actual Variance Variance % Actual Days in...
Below is the variance report
Prior year
Item
Budget
Actual
Variance
Variance %
Actual
Days in time period
31
31
31
Staffed Beds
20
20
20
Patient days
527
498
(29.0)
-5.5%
415
Total RN FTEs
45.1
50.1
(5.0)
-11.1%
36.7
Revenue:
Gross patient revenue
$460,450
$441.932
($18,518)
-4.0%
$417,883
Personnel Expense:
Total salaries and wages
$171,920
$192,845
($20,925)
-12.2%
$141,552
Benefits
$51,576
$52,797
($1,221)
-2.4%
$42,466
Total personnel expenses
$223,496
$245,642
($22,146)
-9.9%
$184,018
Overtime wages %
2.0%
6.1%...
Given the following information: Prior Year (Budget) Prior Year (Actual) Current Year (Budget) Current Year (Actual)...
Given the following information:
Prior Year (Budget)
Prior Year (Actual)
Current Year (Budget)
Current Year (Actual)
Beginning Inventory (Units)
0
0
?
?
Sales (Units)
600,000
580,000
575,000
570,000
Manufactured (Units)
600,000
590,000
640,000
610,000
Selling Price ($/unit)
9.99
9.90
9.95
10.00
Variable Manufacturing Cost ($/unit)
4.92
4.90
5.00
4.95
Total Fixed Manufacturing Costs ($)
1,584,000
1,561,000
1,625,000
1,599,531
Variable Selling Cost ($/unit)
1.00
1.01
0.99
1.00
Total Fixed SG&A Costs ($)
350,000
353,000
352,850
348,000
Other information:
The manufacturer...
Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30 Cost Actual Budget...
Garland Company
Budget Performance Report—Supervisor, Chip Fabrication
For the Month Ended November 30
Cost
Actual
Budget
Over Budget
Under Budget
Factory wages
$95,500
$82,000
$13,500
Materials
115,300
120,000
$(4,700)
Power and light
49,950
45,000
4,950
Maintenance
37,200
28,000
9,200
$297,950
$275,000
$27,650
$(4,700)
a. Complete the budget performance reports by
determining the correct amounts for the lettered spaces (a-l) as
marked above.
a. $
g. $
b. $
h. $
c. $
i. $
d. $
j. $
e. $...
Given the following information: Prior Year (Budget and Actual) Current Year (Budget and Actual) Beginning Inventory...
Given the following information:
Prior Year (Budget and Actual)
Current Year (Budget and Actual)
Beginning Inventory (Units)
0
?
Sales (Units)
600,000
575,000
Manufactured (Units)
600,000
640,000
Selling Price ($/unit)
9.90
10.00
Variable Manufacturing Cost ($/unit)
4.80
5.00
Total Fixed Manufacturing Costs ($)
1,560,000
1,600,000
Variable Selling Cost ($/unit)
1.00
1.00
Total Fixed SG&A Costs ($)
351,000
358,000
Other information:
The manufacturer uses FIFO.
All Variable costs are direct costs
Required:
Prepare an income statement for the Current Year based...
Given the following information: Prior Year (Budget and Actual) Current Year (Budget and Actual) Beginning Inventory...
Given the following information:
Prior Year (Budget and Actual)
Current Year (Budget and Actual)
Beginning Inventory (Units)
0
?
Sales (Units)
600,000
575,000
Manufactured (Units)
600,000
640,000
Selling Price ($/unit)
9.90
10.00
Variable Manufacturing Cost ($/unit)
4.80
5.00
Total Fixed Manufacturing Costs ($)
1,560,000
1,600,000
Variable Selling Cost ($/unit)
1.00
1.00
Total Fixed SG&A Costs ($)
351,000
358,000
Other information:
The manufacturer uses FIFO.
All Variable costs are direct costs
Required:
Prepare an income statement for the Current Year based...
Kite Company has the following report for August: Flexible Sales Actual budget Flexible activity Master Results...
Kite Company has the following report for August:
Flexible
Sales
Actual
budget
Flexible
activity
Master
Results
variances
budget
variances
budget
Units
?
12000
4000 U
?
Sales revenue
?
12000 F
168000
?
?
Variable mfg. costs
96000
?
?
?
120000
Variable mktg. costs
?
4800 U
21600
?
?
Contribution margin
57600
?
?
18800 U
75200
Fill in the missing amounts. For items in the variances columns,
indicate F or U.
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 18,000 hours of
productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$165,600
Power and light
5,760
Indirect materials
46,800
Total variable overhead
cost
$218,160
Fixed overhead cost:
Supervisory salaries
$76,360
Depreciation of plant and equipment
48,000
Insurance and property taxes
30,540
Total fixed overhead
cost
154,900
Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 9,000 hours of
productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$76,500
Power and light
2,790
Indirect materials
21,600
Total variable overhead
cost
$100,890
Fixed overhead cost:
Supervisory salaries
$35,310
Depreciation of plant and equipment
22,200
Insurance and property taxes
14,120
Total fixed overhead
cost
71,630
Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 14,000 hours of
productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$133,000
Power and light
6,440
Indirect materials
30,800
Total variable overhead
cost
$170,240
Fixed overhead cost:
Supervisory salaries
$59,580
Depreciation of plant and equipment
37,450
Insurance and property taxes
23,830
Total fixed overhead
cost
120,860
Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory
overhead cost budget for the Press Department for October of the
current year, during which it expected to require 13,000 hours of
productive capacity in the department:
Variable overhead cost:
Indirect factory labor
$122,200
Power and light
4,160
Indirect materials
35,100
Total variable overhead
cost
$161,460
Fixed overhead cost:
Supervisory salaries
$56,510
Depreciation of plant and equipment
35,520
Insurance and property taxes
22,600
Total fixed overhead
cost
114,630
Total factory...
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