Question

In: Accounting

Fleet​ Feet, Inc., produces dance shoes for stores all over the world. While the pairs of...

Fleet​ Feet, Inc., produces dance shoes for stores all over the world. While the pairs of shoes are boxed​ individually, they are crated and shipped in batches. The shipping department records both variable direct​ batch-level costs and fixed​ batch-level overhead costs. The following information pertains to shipping costs for 2017.

Static-Budget Amounts Actual Results Pairs of shoes shipped 220,000 209,000 Average number of pairs of shoes per crate 11 8 Packing hours per crate 0.9 hours 0.7 hour Variable direct cost per hour $ 24 $ 26 Fixed overhead cost $ 63,000 $ 68,000

Requirements:

1. What is the static budget number of crates for 2017? 2. What is the flexible budget number of crates for 2017? 3. What is the actual number of crates shipped in 2017? 4. Assuming fixed overhead is allocated using crate-packing hours, what is the predetermined fixed overhead allocation rate? 5. For variable direct batch-level costs, compute the price and efficiency variances. 6. For fixed overhead costs, compute the spending and the production-volume variances.

Solutions

Expert Solution

KINDLY UNDERSTAND THAT WE ARE REQUIRED TO ANSWER FOUR PARTS OF ONE QUESTION. AS SUCH REQUEST YOU TO ASK BALANCE PARTS THROUGH A SEPARATE QUESTION.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Linda loves buying shoes and going out to dance. Her utility function for pairs of shoes,...
Linda loves buying shoes and going out to dance. Her utility function for pairs of shoes, S, and the number of times she goes dancing per month, T, is U(S, T) = 2ST, so MUs=2T and MUT = 2S. It costs Linda $50 to buy a new pair of shoes or to spend an evening out dancing. Assume that she has $500 to spend on clothing and dancing. (Hint: See Q&A 4.3.) a. What is the equation for her budget line? Draw...
Leah loves buying shoes and going out to dance. Her utility function for pairs of shoes,...
Leah loves buying shoes and going out to dance. Her utility function for pairs of shoes, X, and the number of times she goes dancing per month, Y, is given by U(x,y)=20XY2+100U(x,y)=20XY2+100    Now suppose that a pair of shoes sells for $10 and it costs Leah $5 to spend an evening out dancing. And assume that she has $90 to spend on clothing and dancing. You are now asked to derive consumer equilibrium. a.     What is the equation for her...
Moondollars is a coffee franchise that has many coffee stores all over the world. MoonDollars coffee...
Moondollars is a coffee franchise that has many coffee stores all over the world. MoonDollars coffee is investigating a linear regression model to predict the annual income for a store based on the population of the city where the store is located. In the proposed regression model, annual store income is the response variable and population of the city is the explanatory variable. A random sample of 20 stores is selected and measurements are observed. Population ('000s) Annual income ('000s...
Moondollars is a coffee franchise that has many coffee stores all over the world. MoonDollars coffee...
Moondollars is a coffee franchise that has many coffee stores all over the world. MoonDollars coffee is investigating a linear regression model to predict the annual income for a store based on the population of the city where the store is located. In the proposed regression model, annual store income is the response variable and population of the city is the explanatory variable. A random sample of 20 stores is selected and measurements are observed. Population ('000s) Annual income ('000s...
Investigating Variances. Robotsy, Inc., produces robots sold at a variety of retail stores throughout the world....
Investigating Variances. Robotsy, Inc., produces robots sold at a variety of retail stores throughout the world. Standard cost information for each robot is presented as follows: Direct materials $60.00 Direct labor 40.00 Variable overhead 30.00 Total $130.00 Robotsy produced and sold 100,000 robots for the year and encountered the following production variances: Direct materials price variance (300,000) Favorable Direct materials quantity variance 290,000 Unfavorable Direct labor rate variance (170,000) Favorable Direct labor efficiency variance (140,000) Favorable Variable overhead spending variance...
A producer of athletic shoes produces all of its basketball shoes at a constant marginal cost...
A producer of athletic shoes produces all of its basketball shoes at a constant marginal cost of $50 per pair. It sells a brand-name version of the shoe with a basketball star endorsement to one market (A) and an identical “discount” brand version to another separate market (B). The demand for the shoes in each market is given by: QA = 100 – 0.2p QB = 40 – 0.4p What is the price per pair in the brand-name market (A)...
A Dance Studio sells all types of items for dancing. Some items are inexpensive ribbons, while...
A Dance Studio sells all types of items for dancing. Some items are inexpensive ribbons, while some are expensive, made-to-order dresses. Some items are sold to individuals while others are bought in large quantities by dance companies. The manager does not understand why many of those long-term customers are finding other suppliers. The company uses a conventional costing system and maintains only a single overhead allocation basis for all types of customers and all products are assumed to share same...
Bottoms Shoes, Inc. makes casual shoes and sandals and has experienced significant growth over the past...
Bottoms Shoes, Inc. makes casual shoes and sandals and has experienced significant growth over the past 16 months. The interesting design of its product lines has always been the key to their success. It is currently still using a system consisting of manual job costing sheets and inventory cards. Although this system worked fine in the past, the company’s recent growth has resulted in several problems with operations and inventory control. The biggest problem is with meeting the production and...
Rostand Inc. operates a delivery service for over 70 restaurants. The corporation has a fleet of...
Rostand Inc. operates a delivery service for over 70 restaurants. The corporation has a fleet of vehicles and has invested in a sophisticated, computerized communications system to coordinate its deliveries. Rostand has gathered the following actual data on last year’s delivery operations: Deliveries made 38,600 Direct labor 31,000 direct labor hours @ $14.00 Actual variable overhead $157,700 Rostand employs a standard costing system. During the year, a variable overhead rate of $5.10 per hour was used. The labor standard requires...
Cardio World Inc. (CWI) is a sporting goods retailer that specializes in bicycles, running shoes, and...
Cardio World Inc. (CWI) is a sporting goods retailer that specializes in bicycles, running shoes, and related clothing. The firm has become successful by careful attention to trends in cycling, running, and changes in the technology and fashion of sport clothing. In recent years, however, the profit margins have begun to fall, and CWI has decided to employ a contribution income statement to further analyze the company’s profitability. The company has two stores, one in Hartford, Connecticut, and the other...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT