Werger Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, W82R and L48S, about which it has provided the following data:

The company's estimated total manufacturing overhead for the year is $3,347,900 and the company's estimated total direct labor-hours for the year is 75,120.

The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

Required:

a. Determine the unit product cost of each of the company's two products under the traditional costing system.

b. Determine the unit product cost of each of the company's two products under activity-based costing system.

(For all requirements, round your intermediate calculations and final answers to 2 decimal places.)

W824 L48S

a. Unit Produced Cost ______ ________

b. Unit Produced Cost _______ __________

Users may order one or more pizzas, where each pizza may be either: small, medium or large. Small pizzas cost $5, medium pizzas cost $8 and large pizzas cost $12. All pizzas come on a tomato base (for our pizza shop, this will be the only option), and will have the topping cheese by default, at no extra cost. Users may choose up to a maximum of four additional toppings (bringing the total to five) from the following list, where each topping adds an additional $1 to the price of the pizza:  Bacon,  Olives,  Ham,  Mushrooms, ITECH5403 – Comparative Programming Languages School of Science, Engineering and Information Technology CRICOS Provider No. 00103D Page 2 of 4  Pineapple,  Salami,  Anchovies. A pizza order consists of an order for one or more pizzas, where each pizza has a size, and may optionally include a list of up to four additional toppings. Each pizza order must be marked as either to be collected or to be delivered. If the pizza is to be collected then the order requires a name and a phone number to be valid. If the pizza is to be delivered then a name, phone number and address are required to be valid. In addition, if the order total is less than $30 then an $8 delivery fee is added to the total. The application must be error tolerant and capable of accepting keyboard input to store a number of pizza orders in memory (they do not have to be persisted to file), as well as displaying an order summary which include details of all orders, including:  The details of each pizza in the order,  The total cost of the order, and  The name, phone number and (if required) address of the person who made the order. Program code in LISP ?

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

Fixed Cost per Month Cost per Course Cost per
Student
Instructor wages $ 2,980
Classroom supplies    $ 300
Utilities $ 1,210 $ 85
Campus rent $ 5,000
Insurance $ 2,300    
Administrative expenses $ 3,900 $ 41 $ 4

For example, administrative expenses should be $3,900 per month plus $41 per course plus $4 per student. The company’s sales should average $850 per student.

The actual operating results for September appear below:

Actual
Revenue $ 50,650
Instructor wages $ 11,200
Classroom supplies $ 18,750
Utilities $ 1,960
Campus rent $ 5,000
Insurance $ 2,440
Administrative expenses $ 3,742

Required:

1. The Gourmand Cooking School expects to run four courses with a total of 63 students in September. Complete the company’s planning budget for this level of activity.

2. The school actually ran four courses with a total of 59 students in September. Complete the company’s flexible budget for this level of activity.

3. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

he Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 61 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,700 per month plus $42 per course plus $5 per student. The company’s sales should average $860 per student.

The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 58 students. The actual operating results for September appear below:

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next Visit question map

Question 5 of 5 Total5 of 5

rev: 08_05_2014_QC_51911, 08_28_2014_QC_51911

Direct Materials Variances

Bellingham Company produces a product that requires 9 standard pounds per unit. The standard price is $8 per pound. If 3,600 units required 31,400 pounds, which were purchased at $8.32 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Factory Overhead Controllable Variance

Bellingham Company produced 6,800 units of product that required 2 standard hours per unit. The standard variable overhead cost per unit is $3.50 per hour. The actual variable factory overhead was $48,410. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
$  

PART 2

Direct Labor Variances

Bellingham Company produces a product that requires 2 standard hours per unit at a standard hourly rate of $10.00 per hour. If 5,500 units required 11,200 hours at an hourly rate of $9.70 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) total direct labor cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

You are manager of a manufacturing business. Business is going very well and one production line is at full capacity. You want to double the size of the production line. Engineering has estimated the cost and time required. It can be accomplished without effecting the existing production. The timing of the cash flows for the facility is as follows.

The current cost of capital is 9% APR. What is the total cost of the project?

You pay interest on the project every year (i.e., you do not pay off the capital, only the interest.) Calculate the total project cost including interest. Use annual numbers to calculate the internal rate of return.

Sales start after the project is completed. You estimate that sales for the first year will be at 30% of capacity and increase to 60% in year 2. Sales after year 2 are estimated at 85% of capacity. The current production line generates $1,100,000 in net profit. The profit at 30% is 0. The profit above 30% will be proportional to the percent capacity utilized. The company demands a minimum 20% internal rate of return for capital projects. Does the 10-year rate of return meet the company requirements? Assume that the company pays interest on the capital for the entire ten years. (Show correct total project cost including Interest, 10 year cash flow, and IRR for project)

Please identify formulas and explain why. Thank you!

The administrative offices and manufacturing plant of Billings Tool & Die share the same building. The following information (in $000s) appears in the accounting records for last year.

Required:

1. Prepare a cost of goods sold statement.

2. Prepare an income statement.

Prepare a cost of goods sold statement. (Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).)

Prepare an income statement. (Enter your answers in thousands of dollars (i.e., 234,000 should be entered as 234).)

1) Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.

Which of the following production plans is better: Plan A—chase demand by hiring and layoffs; or

Plan B—produce at a constant rate of 1200 and obtain the remainder from overtime?

Finish the calculation and show all work!

Plan A:

                                               Eagle Fabrication Solution

Plan B:

                                             Eagle Fabrication Solution

Answer: