In: Accounting
Figure 8-8
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below:
Rammazzotti Inc., had the following budgeted data:
Unit sales for 2014 26,000
Unit production for 2014 26,000
Budgeted fixed overhead for 2014:
Supervision $ 800
Depreciation 2,000
Rent 100
Budgeted variable costs per unit:
Direct materials $0.15
Direct labor 0.20
Supplies 0.02
Indirect labor 0.05
Power 0.02
The following actually occurred:
Actual unit sales for 2014 24,000
Actual unit production for 2014 28,000
Actual fixed overhead for 2014:
Supervision $ 850
Depreciation 2,000
Rent 100
Actual variable costs:
Direct materials $3,500
Direct labor 4,900
Supplies 530
Indirect labor 1,250
Power 470
15. Refer to Figure 8-8. The budgeted cost for direct labor for 2014 was
a. $1,200.
b. $1,300.
c. $4,800.
d. $5,200.
18. Refer to Figure 8-8. The total flexible budgeted costs for 2014 are
a. $10,560.
b. $13,460.
c. $13,510.
d. $15,220.
20. Refer to Figure 8-8. The flexible budget variance for indirect labor for 2014 is
a. $1,250 F.
b. $50 F.
c. $150 F.
d. $1,200 U.
21. Refer to Figure 8-8. The flexible budget variance for total cost for 2014 is
a. $90 F.
b. $140 F.
c. $1,620 F.
d. $50 F.
22. Refer to Figure 8-8. The total actual costs for 2014 were
a. $13,550.
b. $10,650.
c. $13,600.
d. $13,510.
budget | actual | ||
Unit sales for 2014 | 26,000.00 | 24,000.00 | |
Unit production for 2014 | 26,000.00 | 28,000.00 | |
fixed overhead for 2014: | |||
Supervision | 800.00 | 850.00 | |
Depreciation | 2,000.00 | 2,000.00 | |
Rent | 100.00 | 100.00 | |
Total Fixed Cost | 2,900.00 | 2,950.00 | |
variable costs per unit: | |||
Direct materials | 0.15 | 4,200.00 | 3,500.00 |
Direct labor | 0.20 | 5,600.00 | 4,900.00 |
Supplies | 0.02 | 560.00 | 530.00 |
Indirect labor | 0.05 | 1,400.00 | 1,250.00 |
Power | 0.02 | 560.00 | 470.00 |
Total Variable Cost | 12,320.00 | 10,650.00 | |
Total Cost | 15,220.00 | 13,600.00 |
15. d $5200 (26000*0.20)
18.d $15220 (budgeted cost per unit * actual unit produced)
20. b $150F (1400-1250)
21.c $1620F (15220-13600)
22.c $13600