Homework Help is Here – Start Your Trial Now!
Business
Accounting
Answer only 4th

Answer only 4th

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 17P: Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per...
See similar textbooks
icon
Related questions
Question
Answer only 4th
Accounting Simple Jeans is preparing its budget for the next 12 months and uses zero-based budgeting. The budgeted sales price is $44.90 per unit and the budgeted volume of production and sales for the next 12 month period is 100,000 units. The material and labour requirements to produce one pair of jeans are as follows: Direct Materials. Direct Labour Machine hours are used to allocate both variable overheads and fixed overheads. Each pair of jeans uses 0.35 machine hours. The budgeted variable overhead costs are $1,170,000 while the budgeted fixed overhead costs are $356,200 for the year. 2.5 m $6.50 per metre 0.6 DLH $16.75 per labour hour You are later provided with the following detailed actual results and actual costs for the year. Actual $4,249,000 Sales Revenue Direct Materials Direct Labour Variable Overhead Total Variable Costs Contribution Fixed Overhead Costs Net Profit $1,548,450 $953,100 $1,069,375 $3,570,925 $678,075 $358,600 $319,475 90,000 units 225,900 m 56,990 DLH 32,690 MH 1) Calculate the sales volume variance for sales revenue for Simple Jeans. 2) Calculate the sales volume variance for total variable costs for Simple Jeans. 3) Calculate the flexible budget variance for sales revenue for Simple Jeans. 4) Calculate the flexible budget variance for direct materials for Simple Jeans. Give your answer in 2 decimal places and in absolute dollar value (negative not required).
Transcribed Image Text:Accounting Simple Jeans is preparing its budget for the next 12 months and uses zero-based budgeting. The budgeted sales price is $44.90 per unit and the budgeted volume of production and sales for the next 12 month period is 100,000 units. The material and labour requirements to produce one pair of jeans are as follows: Direct Materials. Direct Labour Machine hours are used to allocate both variable overheads and fixed overheads. Each pair of jeans uses 0.35 machine hours. The budgeted variable overhead costs are $1,170,000 while the budgeted fixed overhead costs are $356,200 for the year. 2.5 m $6.50 per metre 0.6 DLH $16.75 per labour hour You are later provided with the following detailed actual results and actual costs for the year. Actual $4,249,000 Sales Revenue Direct Materials Direct Labour Variable Overhead Total Variable Costs Contribution Fixed Overhead Costs Net Profit $1,548,450 $953,100 $1,069,375 $3,570,925 $678,075 $358,600 $319,475 90,000 units 225,900 m 56,990 DLH 32,690 MH 1) Calculate the sales volume variance for sales revenue for Simple Jeans. 2) Calculate the sales volume variance for total variable costs for Simple Jeans. 3) Calculate the flexible budget variance for sales revenue for Simple Jeans. 4) Calculate the flexible budget variance for direct materials for Simple Jeans. Give your answer in 2 decimal places and in absolute dollar value (negative not required).
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Techniques of Time Value Of Money
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS