Question
In: Accounting
Acme Company’s production budget for August is 19,500 units and includes the following component unit costs:...
Acme Company’s production budget for August is 19,500 units and includes the following component unit costs: direct materials, $8.00; direct labor, $12.00; variable overhead, $6.00. Budgeted fixed overhead is $52,000. Actual production in August was 21,450 units.
Required:
Prepare a flexible budget that would be used to compare against actual production costs for August. (Round "Cost per unit" to 2 decimal places.)
Solutions
Expert Solution
Solution:
| Acme Company | |
| Flexible Budget | |
| For August | |
| Production in Units | 21450 |
| Direct materials (241400/34000*35600) | $1,71,600 |
| Direct Labor (207400/34000*35600) | $2,57,400 |
| Variable Overhead (51000/34000*35600) | $1,28,700 |
| Total variable costs | $5,57,700 |
| Fixed overhead | $52,000 |
| Total manufacturing Costs | $6,09,700 |
ekkarill92 answered 2 years agoRelated Solutions
Acme Company’s production budget for August is 18,100 units and includes the following component unit costs:...
Acme Company’s production budget for August is 18,100 units and
includes the following component unit costs: direct materials,
$8.00; direct labor, $10.50; variable overhead, $6.50. Budgeted
fixed overhead is $38,000. Actual production in August was 19,872
units. Actual unit component costs incurred during August include
direct materials, $9.00; direct labor, $10.00; variable overhead,
$7.50. Actual fixed overhead was $40,100.
Required:
Prepare a performance report, including each cost component.
(Indicate the effect of each variance by selecting "F" for
favorable, "U"...
Acme Company’s production budget for August is 18,900 units and includes the following component unit costs:...
Acme Company’s production budget for August is 18,900 units and
includes the following component unit costs: direct materials,
$7.20; direct labor, $11.40; variable overhead, $5.40. Budgeted
fixed overhead is $46,000. Actual production in August was 21,840
units. Actual unit component costs incurred during August include
direct materials, $9.60; direct labor, $10.80; variable overhead,
$6.20. Actual fixed overhead was $48,900.
Required:
Prepare a performance report, including each cost component.
(Indicate the effect of each variance by selecting "F" for
favorable, "U"...
Acme Company’s production budget for August is 18,900 units and includes the following component unit costs:...
Acme Company’s production budget for August is 18,900 units and
includes the following component unit costs: direct materials,
$7.2; direct labor, $11.4; variable overhead, $5.4. Budgeted fixed
overhead is $46,000. Actual production in August was 21,840 units.
Actual unit component costs incurred during August include direct
materials, $9.60; direct labor, $10.80; variable overhead, $6.20.
Actual fixed overhead was $48,900. The standard fixed overhead
application rate per unit consists of $2.2 per machine hour and
each unit is allowed a standard...
1. Acme Company’s production budget for August is 17,600 units and includes the following component unit...
1. Acme Company’s production budget for August is 17,600 units
and includes the following component unit costs: direct materials,
$7.70; direct labor, $10.10; variable overhead, $6.20. Budgeted
fixed overhead is $33,000. Actual production in August was 18,810
units. Actual unit component costs incurred during August include
direct materials, $8.50; direct labor, $9.10; variable overhead,
$6.90. Actual fixed overhead was $34,600. The standard direct
material cost per unit consists of 11 pounds of raw material at
$0.7 per pound. During August,...
Innovation Inc.'s production budget for January is 35,000 units and includes the following component unit costs:...
Innovation Inc.'s production budget for January is 35,000 units
and includes the following component unit costs: direct materials,
$16; direct labor, $20; variable overhead, $12. Budgeted fixed
overhead is $70,000 (35,000 units × 1/2hour × $4unit). Actual
production in January was 36,000 units. Actual unit component costs
incurred during January include direct materials, $16.50; direct
labor, $18.90; variable overhead, $13.64. Actual fixed overhead was
$67,000. The standard fixed overhead application rate per unit
consists of $4 per machine hour and...
RTI Company’s master budget calls for production and sale of 18,200 units for $83,720, variable costs...
RTI Company’s master budget calls for production and sale of
18,200 units for $83,720, variable costs of $32,760, and fixed
costs of $20,000. During the most recent period, the company
incurred $32,200 of variable costs to produce and sell 20,000 units
for $85,200. During this same period, the company earned $25,200 of
operating income.
Required:
1. Determine the following for RTI Company: (Do not
round intermediate calculations. Round your answers to the nearest
whole dollar.)
a. Flexible-budget operating income.
b....
RTI Company’s master budget calls for production and sale of 18,100 units for $81,450, variable costs...
RTI Company’s master budget calls for production and sale of
18,100 units for $81,450, variable costs of $30,770, and fixed
costs of $18,000. During the most recent period, the company
incurred $34,100 of variable costs to produce and sell 18,000 units
for $84,000. During this same period, the company earned $23,000 of
operating income.
QUESTIONS:
1. Determine the following for RTI Company: (Do not
round intermediate calculations. Round your answers to the nearest
whole dollar.)
a. Flexible-budget operating income.
b....
RTI Company’s master budget calls for production and sale of 19,300 units for $98,430; variable costs...
RTI Company’s master budget calls for production and sale of
19,300 units for $98,430; variable costs of $44,390; and fixed
costs of $18,600. During the most recent period, the company
incurred $33,300 of variable costs to produce and sell 18,600 units
for $86,300. During this same period, the company earned $26,300 of
operating income. (Do not round intermediate calculations.
Round final answer to the nearest whole dollar.)
Required:
1.
Determine the following for RTI Company:
a.
Flexible-budget operating income.
b....
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...
Martinez Company’s relevant range of production is 10,300 units to 15,300 units. When it produces and sells 12,800 units, its unit costs are as follows:
Martinez Company’s relevant range of production is 10,300 units to 15,300 units. When it produces and sells 12,800 units, its unit costs are as follows:
AmountPer Unit
Direct materials
$
5.60
Direct labor
$
3.10
Variable manufacturing overhead
$
1.40
Fixed manufacturing overhead
$
3.60
Fixed selling expense
$
2.60
Fixed administrative expense
$
2.20
Sales commissions
$
1.20
Variable administrative expense
$
0.45
13.
If the selling...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- How Can Hominin Evolution be characterized as " mosaic evolution" Use examples of species from the...
- Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of...
- Mobile and wireless devices are being increasingly used in the Business Administration and Management Industry. write...
- What are the options that might be considered in relation to introducing flexible work practices? What...
- Question 2 : Aggregate Scores: Write a program that opens 2 files, quiz.txt, and hw.txt. The...
- Define the term symbiosis specifically as it applies in a biological context. Compare and contrast parasitism,...
- A research team conducted a study showing that approximately 20% of all businessmen who wear ties...
ADVERTISEMENT