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Factory Overhead Cost Variance Report

Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 8,200 hours.

Variable costs:
   Indirect factory wages $23,780
   Power and light 15,006
   Indirect materials 11,726
    Total variable cost $50,512
Fixed costs:
   Supervisory salaries $13,580
   Depreciation of plant and equipment 34,830
   Insurance and property taxes 10,630
    Total fixed cost 59,040
Total factory overhead cost $109,552

During October, the department operated at 8,700 standard hours, and the factory overhead costs incurred were indirect factory wages, $25,480; power and light, $15,630; indirect materials, $12,700; supervisory salaries, $13,580; depreciation of plant and equipment, $34,830; and insurance and property taxes, $10,630.

Required:

Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 8,700 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank.

Feeling Better Medical Inc.
Factory Overhead Cost Variance Report—Assembly Department
For the Month Ended October 31
Normal capacity for the month 8,200 hrs.
Actual production for the month 8,700 hrs.
Budget Actual Favorable Variances Unfavorable Variances
Variable costs:
Indirect factory wages $ $ $
Power and light $
Indirect materials
Total variable cost $ $
Fixed costs:
Supervisory salaries $ $
Depreciation of plant and equipment
Insurance and property taxes
Total fixed cost $ $
Total factory overhead cost $ $
Total controllable variances $ $
Net controllable variance-unfavorable $
Volume variance-favorable
Excess hours used over normal at the standard rate for fixed factory overhead
Total factory overhead cost variance-favorable $

In: Accounting

Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared...

Factory Overhead Cost Variance Report

Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 6,700 hours.

Variable costs:
   Indirect factory wages $20,100
   Power and light 14,271
   Indirect materials 12,261
    Total variable cost $46,632
Fixed costs:
   Supervisory salaries $13,560
   Depreciation of plant and equipment 34,790
   Insurance and property taxes 10,610
    Total fixed cost 58,960
Total factory overhead cost $105,592

During October, the department operated at 7,100 standard hours, and the factory overhead costs incurred were indirect factory wages, $21,510; power and light, $14,850; indirect materials, $13,300; supervisory salaries, $13,560; depreciation of plant and equipment, $34,790; and insurance and property taxes, $10,610.

Required:

Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 7,100 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank.

Feeling Better Medical Inc.
Factory Overhead Cost Variance Report—Assembly Department
For the Month Ended October 31
Normal capacity for the month 6,700 hrs.
Actual production for the month 7,100 hrs.
Budget Actual Favorable Variances Unfavorable Variances
Variable costs:
Indirect factory wages $ $ $
Power and light $
Indirect materials
Total variable cost $ $
Fixed costs:
Supervisory salaries $ $
Depreciation of plant and equipment
Insurance and property taxes
Total fixed cost $ $
Total factory overhead cost $ $
Total controllable variances $ $
Net controllable variance-unfavorable $
Volume variance-favorable
Excess hours used over normal at the standard rate for fixed factory overhead
Total factory overhead cost variance-favorable $

In: Accounting

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Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $9,250. The booth will be open 25 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $177 per package. She will continue to sell the existing product, EZRecords, which costs $101 per package. Ms. Garcia believes that the salesperson will spend approximately 15 hours selling EZRecords and 10 hours marketing ProOffice.

Required

  1. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 84 units of EZRecords and 54 units of ProOffice.

  2. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 200 units of EZRecords and 109 units of ProOffice.

(For all requirements, round "Cost per unit" to 2 decimal places.)

EZRecords ProOffice
a. Total cost of sales
Cost per unit
b. Total cost of sales
Cost per unit

In: Accounting

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Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below:

Materials Labor Overhead
Work in process, May 1 $ 11,600 $ 17,361 $ 80,664
Cost added during May $ 70,450 $ 11,574 $ 53,776
Equivalent units of production 1,000 900 800

Required:

Compute the cost per equivalent unit for materials, labor, overhead, and in total. (Round your answers to 2 decimal places.)

Materials Labor Overhead Total
Cost per equivalent unit

Maria Am Corporation uses the weighted-average method in its process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Baking Department, the cost of beginning work in process inventory was $4,810, the cost of ending work in process inventory was $1,130, and the cost added to production was $25,150.

Required:  

Prepare a cost reconciliation report for the Baking Department for June.

Baking Department
Cost Reconciliation
Costs to be accounted for:
Total cost to be accounted for $0
Costs accounted for as follows:
Total cost accounted for $0

In: Accounting

Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade...

Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $11,400. The booth will be open 30 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $175 per package. She will continue to sell the existing product, EZRecords, which costs $96 per package. Ms. Garcia believes that the salesperson will spend approximately 20 hours selling EZRecords and 10 hours marketing ProOffice.

Required

  1. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 82 units of EZRecords and 45 units of ProOffice.

  2. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 194 units of EZRecords and 109 units of ProOffice.

(For all requirements, round "Cost per unit" to 2 decimal places.)

EZRecords ProOffice
a. Total cost of sales
Cost per unit
b. Total cost of sales
Cost per unit

In: Accounting

The city of Laurelville recently opened a private parking lot in its downtown area for the...

The city of Laurelville recently opened a private parking lot in its downtown area for the benefit of city residents. A guard has been hired to patrol the lot and to issue numbered parking stickers to residents submitting an application form and showing evidence of residency. Once a resident has a sticker, they may park in the lot for 12 hours for $1. The guard inspects for stickers on all parked cars, as well as the meter time gauges to see that all fees have been paid. The complete application forms are maintained in the guard's office.

By using a master key, the guard takes coins from the meters weekly and places them in a locked collection box. The guard delivers the box to the city storage department, where a clerk opens it, manually counts the coins, puts the cash in a safe, and records the total on a weekly cash report. This report is sent to the city's accounting department. The day following the cash count, the city treasure's office picks up the cash and manually recounts it, prepares a deposit slip, and makes the deposit at the bank. The deposit slip, authenticated by a bank teller, is sent to the accounting department, where it is filed with the corresponding cash report.

Required: Decribe weaknesses in this system and recommend improvements to strengthen the control procedures.

In: Accounting

.Suppose that the market demand curve facing the incumbent firm is p = 460 -0.5y.The firms...

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In: Economics

Suppose that the market demand curve facing the incumbent firm is p = 460 - 0.5y....

Suppose that the market demand curve facing the incumbent firm is p = 460 - 0.5y. The firms total cost curve is c(y) = 100y. The incumbent firm is threatened by a potential entrant, which faces a fixed entry cost K in addition to the variable cost. The entrant's total cost is therefore c(y) = K + 100y .Find the limit output YL

In: Economics

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for...

The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation.

Production: 6,180 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs.

Manufacturing costs: Materials $28,917; labor $20,500; overhead $33,062.

Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

QUIK FURNITURE COMPANY
Sanding Department
Production Cost Report
For the Month Ended March 31, 2020

Costs


Materials

Conversion
Costs


Total

Unit costs

   Total Costs

$enter a dollar amount $enter a dollar amount $enter a total of the two previous amounts

   Equivalent units

enter a number of units enter a number of units

   Unit costs

$enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places $enter a total of the two previous amounts rounded to 2 decimal places

Costs to be accounted for

   Work in process, March 1

$enter a total amount

   Started into production

enter a total amount

      Total costs

$enter a total of the two previous amounts

Cost Reconciliation Schedule

Costs accounted for

   Transferred out

$enter a total amount

   Work in process, March 31

      Materials

$enter a dollar amount

      Conversion costs

enter a dollar amount enter a subtotal of the two previous amounts

   Total costs

$enter a total amount for this Cost Reconciliation Schedule

In: Accounting