Question
In: Accounting
A.) Last year, Bandana Corporation budgeted for production and sales of 11,000 bandanas. The company produced...
A.) Last year, Bandana Corporation budgeted for production and sales of 11,000 bandanas. The company produced and sold 10,500 bandanas. Each bandana has a standard requiring 2 feet of material at a budgeted cost of $1.50 per foot and 30 minutes of sewing time at a cost of $0.30 per minute. The bandanas sell for $14.75. Actual costs for for the production of 10,500 bandanas were $33,880 for materials (22,000 feet at $1.54 per foot) and $92,800 for labor (320,000 minutes at $0.29 per minute). What was Bandana's sales volume variance?
a.) $1,695
b.) $1,345
c.) $1,375
d.) $1,595
B.Refer to the information above. Bandana's actual revenue from bandana sales was $154,875. What was bandana's sales price variance?
a.) $1,950 F
b.) $1,950 U
c.) $0
d.) It cannot be determined from the information provided
C.) Refer to the information in question A.). What was Bandana's direct material price variance?
a.) $1,500 F
b.) $1,500 U
c.) $880F
d.) $880 U
D.) Refer to the information in question A.). What was Bandana's direct material usage variance?
a.) $1,500 F
b.) $1,500 U
c.) $880 F
d.) $880 U
E.) Refer to the information in question A.). What was Bandana's direct labor rate variance?
a.) $1,500 F
b.) $1,500 U
c.) $3,200 F
d.) $3,200 U
F. Refer to the information in question A.). What was BAndana's direct labor efficiency varince?
a.) $1,500 F
b.) $1,500 U
c.) $3,200 F
d.) $3,200 U
Solutions
Expert Solution
| Budgeted Production | 11000 | |||||||||
| Actual Production | 10500 | |||||||||
| Standard Material Cost per unit | = | Material per unit * per unit material price | ||||||||
| Standard Material Cost per unit | = | 2*1.5 | ||||||||
| Standard Material Cost per unit | = | $ 3.00 | ||||||||
| Direct Labor Cost | = | Time per unit* price per minute | ||||||||
| Direct Labor Cost | = | 30*.3 | ||||||||
| Direct Labor Cost | = | $ 9.00 | ||||||||
| Total direct cost | = | Material Cost + Direct Labor | ||||||||
| Total direct cost | = | 3+9 | ||||||||
| Total direct cost | = | $ 12.00 | ||||||||
| Sales Price | = | $ 14.75 | ||||||||
| Standard Profit/Unit | = | Sales price-Total direct cost | ||||||||
| Standard Profit/Unit | = | 14.75-12 | ||||||||
| Standard Profit/Unit | = | $ 2.75 | ||||||||
| A | Sales Volume Variance | = | (Actual Units Sold - Budgeted Units Sold)*Standard Profit per unit | |||||||
| Sales Volume Variance | = | (10500-11000)*2.75 | ||||||||
| Sales Volume Variance | = | $ (1,375) | ||||||||
| Option C - $ 1375 | ||||||||||
| B | Sales Price Revenue | = | Actual Quantity sold *( Actual Selling Price - Budgeted Selling Price ) | |||||||
| Actual Revenue | = | $154,875 | ||||||||
| Actual Units | = | 10,500 | ||||||||
| Actual Sales Price | = | $14.75 | ||||||||
| Since Actual and budgeted sales price is same so there will be Zero Sales Price variance. | ||||||||||
| Option C - $0 | ||||||||||
| C | Direct Material Price Variance | = | (Actual Material Price/Unit - Budgeted Material Price/Unit)*Actual material | |||||||
| Direct Material Price Variance | = | (1.54-1.5)*22000 | ||||||||
| Direct Material Price Variance | = | $ 880 | U | |||||||
| Option D - $ 880U | ||||||||||
| D | Direct Material Usage Variance | = | (Actual Quantity - standard quantity for actual production ) * standard price | |||||||
| Direct Material Usage Variance | = | (22000-21000)*1.5 | ||||||||
| Direct Material Usage Variance | $ 1,500 | U | ||||||||
| Option B - $ 1500 U | ||||||||||
| E | Direct Labor Rate Variance | = | (Actual Labor Rate-Budgeted Labor Rate)*Actual time | |||||||
| Direct Labor Rate Variance | = | (.29-.3)*320000 |
 ekkarill92 answered 1 year agoRelated SolutionsThe following data is related to sales and production for Blue sky company for last year....The following data is related to sales and production for Blue
sky company for last year.
Selling price per unit $140
Variable manufacturing costs per unit $62
Variable selling and administrative expenses per unit $6
Fixed manufacturing overhead (in total) $32,000
Fixed selling and administrative expenses (in total) $6000
Units produced during the year 2000
Units sold during year 900
a) Using variable costing, what is the operating income for last
year?
b) Management is considering the following courses of...
Occipital Wraps Company makes both cash and credit sales. Budgeted sales for the last quarter of...
Occipital Wraps Company makes both cash and credit sales.
Budgeted sales for the last quarter of the fiscal year are as
follows:
August
September
October
Cash Sales
$40,000
$60,000
$100,000
Credit Sales
300,000
340,000
440,000
Total
$340,000
$400,000
$540,000
Experience reveals that 6% of credit
sales will be uncollectible. Of the sales that are collectable 50%
are collected in the month of the sale; 35% are collected in the
month following the sale, and the remainder are collected in the...
7. A. Below is budgeted production and sales information for Flushing Company for the month...7. A.
Below is budgeted
production and sales information for Flushing Company for the month
of December:
Product XXX
Product ZZZ
Estimated beginning inventory
29,200 units
18,100 units
Desired ending inventory
35,600 units
14,100 units
Region I, anticipated sales
341,000 units
262,000 units
Region II, anticipated sales
188,000 units
143,000 units
The unit selling price
for product XXX is $4 and for product ZZZ is $15.
Budgeted sales for the month are
a. $9,555,000
b. $14,010,000
c. $3,736,000
d....
9. Below is budgeted production and sales information for Flushing Company for the month of December....9.
Below is budgeted production and sales information for Flushing
Company for the month of December.
Product XXX
Product ZZZ
Estimated beginning inventory
29,100 units
16,300 units
Desired ending inventory
36,100 units
15,500 units
Region I, anticipated sales
303,000 units
264,000 units
Region II, anticipated sales
190,000 units
146,000 units
The unit selling price for product XXX is $4 and for product ZZZ
is $16.
Budgeted sales for the month are
a.$3,612,000
b.$14,448,000
c.$8,532,000
d.$9,528,000
11.
Stephanie Corporation sells a...
Below is budgeted production and sales information for Flushing Company for the month of December. Product...Below is budgeted production and sales information for Flushing
Company for the month of December.
Product XXX
Product ZZZ
Estimated beginning inventory
31,700 units
16,300 units
Desired ending inventory
37,000 units
14,500 units
Region I, anticipated sales
312,000 units
267,000 units
Region II, anticipated sales
189,000 units
149,000 units
The unit selling price for product XXX is $4 and for product ZZZ
is $13.
Budgeted sales for the month is
a.$3,668,000
b.$11,921,000
c.$8,177,000
d.$7,412,000
Q1: Below is budgeted production and sales information for Flushing Company for the month of December:...Q1:
Below is budgeted production and sales information for Flushing
Company for the month of December:
Product XXX
Product ZZZ
Estimated beginning inventory
31,600 units
17,100 units
Desired ending inventory
35,100 units
14,200 units
Region I, anticipated sales
345,000 units
279,000 units
Region II, anticipated sales
181,000 units
147,000 units
The unit selling price for product XXX is $6 and for product ZZZ
is $13. Budgeted sales for the month are
$9,394,000
$8,694,000
$12,376,000
$5,712,000
Q2:
Below is budgeted production...
Below is budgeted production and sales information for Flushing Company for the month of December: Product...Below is budgeted production and sales information for Flushing
Company for the month of December:
Product XXX
Product ZZZ
Estimated beginning inventory
30,600 units
20,000 units
Desired ending inventory
35,700 units
14,800 units
Region I, anticipated sales
317,000 units
274,000 units
Region II, anticipated sales
188,000 units
144,000 units
The unit selling price for product XXX is $7 and for product ZZZ
is $15.
Budgeted sales for the month are
a.$6,461,000
b.$9,805,000
c.$10,501,000
d.$13,845,000
The LaGrange Corporation had the following budgeted sales for the first half of the current year:...The LaGrange Corporation had the following budgeted sales for
the first half of the current year:
Cash Sales
Credit Sales
January
$
40,000
$
140,000
February
$
45,000
$
160,000
March
$
39,000
$
120,000
April
$
34,000
$
119,000
May
$
44,000
$
190,000
June
$
70,000
$
130,000
The company is in the process of preparing a cash budget and
must determine the expected cash collections by month. To this end,
the following information has been assembled:
Collections...
The TS Corporation has budgeted sales for the year as follows: Quarter 1 2 3 4 Sales...
The TS Corporation has budgeted sales for the year as follows:
Quarter 1 2 3 4 Sales 10,000 12,000 14,000 16,000The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,200 pounds. The raw materials inventory at the end of each quarter should equal 10% of the next quarter's...
Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the...Dove Corporation began its operations on September 1 of the
current year. Budgeted sales for the first three months of business
are $250,000, $320,000, and $410,000, respectively, for September,
October, and November. The company expects to sell 25% of its
merchandise for cash. Of sales on account, 70% are expected to be
collected in the month of the sale and 30% in the month following
the sale.
The cash collections expected in October are
a.
$320,000
b.
$304,250
c....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
ADVERTISEMENT
|