Augusta Sports manufactures baseball caps. The company uses standards to control costs. The labor standards for one baseball cap are as follows: Standard Rate per Hour 15 minutes $15 per hour Standard Hours The budgeted variable overhead rate is $5 per direct labor hour. During the current month, the company incurred $19,925 in variable manufacturing overhead costs. During the current month, 5,114 direct labor hours were needed to manufacture 18,942 baseball caps. Direct labor costs totaled $102,000 for the month. Compute the variable overhead spending variance. Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number.
Q: Seif Company sells many products. chairs is one of its popular items. Below is an analysis of the…
A: Lets understand the basics. Inventory refers to the amount of goods or merchandise which the company…
Q: Explian Tax Compliance Decisions in thoses erea Audit rates Fines Marginal tax rate Income Reasons…
A: Tax compliance decisions refer to the choices made by individuals or businesses to comply with tax…
Q: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the year-end…
A: Journal Entries: On April 1, 2024: Equipment $45,360 To Cash $45,360 To record the…
Q: Your new company paid the invoice for their account with Alli's Broom Supply Company. What would…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Net income or loss is transferred from the income statement to the: < Trial Balance General Journal…
A: Financial statement are very important statement for any entity to review the status that how much…
Q: se ($2 por unit) 8,000 2,500 2.600 10
A: Answer : Retailer in contribution format : Per unit Sales revenue $65,000 $50…
Q: PROBLEM 2: You are auditing the financial statements of Light Inc. for the year 2021. The details of…
A: Retained earnings is the accumulated profit of the business that is used for the growth of the…
Q: Financial Analysis The following financial results are shown for East, Inc. and West, Inc. Ratios…
A: This question presents financial ratios for two companies, East, Inc. and West, Inc., and asks the…
Q: QuikCard processes credit card receipts for local banks. QuikCard processed 1,300,000 receipts in…
A: Cost of production is the total cost incurred by the producer in producing the goods and services…
Q: Swifty Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The…
A: Lets understand the basics. Break even point is a point at which no profit no loss condition arise.…
Q: Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a…
A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: Perpetual inventory using weighted average Beginning inventory, purchases, and sales for WCS12 are…
A: Under weighted average model, cost of the goods that are available for sale divided by the number of…
Q: Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected…
A: Lets understand the basics. When callable bonds called by the entity then there is a possibility of…
Q: ipany going ugh a Cash Receivables (25% collectible) Inventory (worth $34,850) apter Land (worth…
A:
Q: A small business owner is having issues with cash flow and is unclear of how to fix the situation.…
A: A company's cash flow position refers to the amount of cash that is available to the company at any…
Q: Part 016 is used by Mcvean Corporation to make one of its products. A total of 19,500 units of this…
A: Lets understand the basics. When decision is required to make between whether to produce internally…
Q: provide a critical discussion of how the zero based budgeting approach can a strategic budget reform…
A: Zero-based budgeting (ZBB) is a planning strategy that does not merely base the plan on data from…
Q: On June 1, 2024, Wildhorse, Inc. issued $9,760,000, 6 % bonds for $9,566,020, which includes accrued…
A: Bond is a financial instrument which can be used in raising the funds for large organization. It is…
Q: Saddlery Company sells leather saddles and equipment for horse enthusiasts Saddlery uses the…
A: Under FIFO method the oldest products in inventory have been sold first. Under weighted average…
Q: Blossom Construction Company has entered into a non-cancellable contract beginning January 1, 2023,…
A: Using the percentage method, the profit or loss is recognized on the basis of the percentage of the…
Q: The Age Discrimination in Employment Act applies to all companies with or more employees.
A: The Age Discrimination in Employment Act (ADEA) is a federal law that prohibits employers from…
Q: A young man is the beneficiary of a trust fund established for him 21 years ago at his birth. If the…
A: Calculation of amount will be received if interest compounded annually , Quarterly and monthly are…
Q: The following information pertains to UV company. The direct labor standards for a product are 5…
A: Total direct labor variance :— It is the difference between standard direct labor cost for actual…
Q: The shareholders' equity accounts of Crane Ltd. on April 1, 2020, the beginning of the fiscal year,…
A: The weighted average number of shares is determined by taking the number of outstanding shares and…
Q: The following are Margin Company's production costs for December: $ 106,000 96,000 2,000 Direct…
A: The costs should be traced to specific products in the production process are direct costs i.e…
Q: Nandalal’s sister, Inder, has recently mentioned that they need to have better business records and…
A: Maintaining accurate corporate records is crucial for a number of reasons. It supports the…
Q: Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for WCS12 are…
A: Units in ending inventory is Opening stock = 340 Less : Sales = 160…
Q: Non-GAAP measures have become extremely common. TRUE or FALS
A: Non-GAAP (Generally Accepted Accounting Principles) measures are financial performance metrics that…
Q: Which of the following company types would not be a manufacturing concern? O Walmart Stores O Ford O…
A: A manufacturing company is a type of company that produces goods or products using raw materials and…
Q: Grand River Company produces a high-quality insulation material that passes through two production…
A: Equivalent units of Production : It represents the production of a process in terms of completed…
Q: IBN from Taiwan plans to set up a new computer manufacturing plant in Europe. The costs would be the…
A: The fixed cost does not change with volume but variable cost do changes with volume of production…
Q: Explain all why will increase, decrease or stay the same
A: Lets understand the basics. As per balance sheet or accounting equation, total assets are always…
Q: 32-Mike and Sally Card file a joint return for the 2022 tax year. Their adjusted gross income is…
A: There are deduction allowed for mortgage and education in the income tax return only there are no…
Q: Complete the following partial worksheet for Pat Inc. and Slinger Company for the year acquisition…
A: Introduction : Consolidated financial statements refers to collating the individual financial…
Q: Mobley Corp. has 9,468,000 shares of common stock and 504,000 shares of preferred stock outstanding…
A: Earnings per share (EPS) is a measure of a company's profitability that shows how much of its net…
Q: Problem 26-1A a b Question 1 Average annual rate of return for both projects Net Present Value for…
A: Introduction:- The various alternative methods of capital budgeting are enumerated below: Payback…
Q: Sheba Ltd.’s statement of financial position shows ordinary share capital of £150,000 and share…
A: An ordinary share, also known as a common share, is a type of equity ownership in a company.…
Q: Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period…
A: LIFO stands for “Last-In, First-Out”. It is a method used for cost flow assumption purposes in the…
Q: H2. John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter,…
A: To calculate the Fergusons' federal income taxes payable or refund for 2021, we need to start by…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: REVENUE & SPENDING VARIANCE IS USED TO FIND THE DIFFERENCE BETWEEN THE BUDGETED AND ACTUAL…
Q: Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,000 on January 15, 2013. On December…
A: A recognized loss is a loss that has been acknowledged and recorded in an entity's financial…
Q: Required information [The following information applies to the questions displayed below.) Ramort…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: What is the money supply? Is it important?
A: The money supply refers to the total amount of money in circulation within an economy. This includes…
Q: Jack and Jill exchange like-kind real estate assets as listed below: Jack's old asset: FMV…
A: Given that Jill's old asset: FMV $70,000; and his Basis $55,000 Hence Jill had an deffered gain of…
Q: Listed below in random order are line items to be included in the statement of cash flows. Purchase…
A: CASH FLOW STATEMENT Cash flow statement is additional information to user of financial statement.…
Q: Mr. Fuentes has $15,000 to invest. He is undecided about putting the money into tax-exempt municipal…
A: To determine which investment Mr. Fuentes should make, we need to compare the after-tax returns of…
Q: Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $102 per…
A: a. To calculate the difference in absorption costing operating income between the two production…
Q: During an accounting period, a business sells goods on credit for a total selling price of £3,000.…
A: To calculate the cash inflow from sales, we need to determine the amount of cash received from…
Q: Question list Question 1 Question 2 The Sullivan Corporation manufactures lamps. It has set up the…
A:
Q: The cost baseline is calculated as: the sum of all work package cost estimates + management reserves…
A: The cost baseline is a key element of the project management plan, which is developed during the…
Please do not give solution in image format thanku
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Douglas Davis, controller for Marston, Inc., prepared the following budget for manufacturing costs at two different levels of activity for 20X1: During 20X1, Marston worked a total of 80,000 direct labor hours, used 250,000 machine hours, made 32,000 moves, and performed 120 batch inspections. The following actual costs were incurred: Marston applies overhead using rates based on direct labor hours, machine hours, number of moves, and number of batches. The second level of activity (the right column in the preceding table) is the practical level of activity (the available activity for resources acquired in advance of usage) and is used to compute predetermined overhead pool rates. Required: 1. Prepare a performance report for Marstons manufacturing costs in the current year. 2. Assume that one of the products produced by Marston is budgeted to use 10,000 direct labor hours, 15,000 machine hours, and 500 moves and will be produced in five batches. A total of 10,000 units will be produced during the year. Calculate the budgeted unit manufacturing cost. 3. One of Marstons managers said the following: Budgeting at the activity level makes a lot of sense. It really helps us manage costs better. But the previous budget really needs to provide more detailed information. For example, I know that the moving materials activity involves the use of forklifts and operators, and this information is lost when only the total cost of the activity for various levels of output is reported. We have four forklifts, each capable of providing 10,000 moves per year. We lease these forklifts for five years, at 10,000 per year. Furthermore, for our two shifts, we need up to eight operators if we run all four forklifts. Each operator is paid a salary of 30,000 per year. Also, I know that fuel costs about 0.25 per move. Assuming that these are the only three items, expand the detail of the flexible budget for moving materials to reveal the cost of these three resource items for 20,000 moves and 40,000 moves, respectively. Based on these comments, explain how this additional information can help Marston better manage its costs. (Especially consider how activity-based budgeting may provide useful information for non-value-added activities.)Cozy, Inc., manufactures small and large blankets. It estimates $950,000 in overhead during the manufacturing of 360,000 small blankets and 120,000 large blankets. What is the predetermined overhead rate if a small blanket takes 2 hours of direct labor and a large blanket takes 3 hours of direct labor?JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of 600,000 and fixed factory overhead of 400,000. JoyT uses a standard costing system, and factory overhead is allocated to units produced using standard direct labor hours. The level of activity budgeted for this year was 10,000 direct labor hours, and JoyT used 10,300 actual direct labor hours. Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was 596,000, and actual fixed factory overhead was 410,000 for the year. Based on this information, the variable factory overhead controllable variance for JoyT for this year was: a. 24,000 unfavorable. b. 2,000 unfavorable. c. 4,000 favorable. d. 22,000 favorable.
- Moleno Company produces a single product and uses a standard cost system. The normal production volume is 120,000 units; each unit requires 5 direct labor hours at standard. Overhead is applied on the basis of direct labor hours. The budgeted overhead for the coming year is as follows: At normal volume. During the year, Moleno produced 118,600 units, worked 592,300 direct labor hours, and incurred actual fixed overhead costs of 2,150,400 and actual variable overhead costs of 1,422,800. Required: 1. Calculate the standard fixed overhead rate and the standard variable overhead rate. 2. Compute the applied fixed overhead and the applied variable overhead. What is the total fixed overhead variance? Total variable overhead variance? 3. CONCEPTUAL CONNECTION Break down the total fixed overhead variance into a spending variance and a volume variance. Discuss the significance of each. 4. CONCEPTUAL CONNECTION Compute the variable overhead spending and efficiency variances. Discuss the significance of each.Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
- Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: During the year, the company had the following activity: Actual fixed overhead was 12,000 less than budgeted fixed overhead. Budgeted variable overhead was 5,000 less than the actual variable overhead. The company used an expected actual activity level of 12,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. Required: 1. Compute the unit cost using (a) absorption costing and (b) variable costing. 2. Prepare an absorption-costing income statement. 3. Prepare a variable-costing income statement. 4. Reconcile the difference between the two income statements.Fitzgerald Company manufactures sewing machines, and they produced 2,500 this past month. The standard variable manufacturing overhead (M0H) rate used by the company is $6.75 per machine hour. Each sewing machine requires 13.5 machine hours. Actual machine hours used last month were 33,500, and the actual variable MOH rate last month was $7.00. Calculate the variable overhead rate variance and the variable overhead efficiency variance.Queen Industries uses a standard costing system in the manufacturing of its single product. It requires 2 hours of labor to produce 1 unit of final product. In February, Queen Industries produced 12,000 units. The standard cost for labor allowed for the output was $90,000, and there was an unfavorable direct labor time variance of $5,520. A. What was the standard cost per hour? B. How many actual hours were worked? C. If the workers were paid $3.90 per hour, what was the direct labor rate variance?
- Bach Instruments Inc. makes three musical instruments: flutes, clarinets, and oboes. The budgeted factory overhead cost is 2,948,125. Overhead is allocated to the three products on the basis of direct labor hours. The products have the following budgeted production volume and direct labor hours per unit: a. Determine the single plant wide overhead rate. b. Use the overhead rate in (a) to determine the amount of total and per-unit overhead allocated to each of the three products, rounded to the nearest dollar.USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted, 12,000 units were produced. The Purchasing department bought 50,000 lb of materials at a cost of $237,500. Actual pounds of materials used were 46,000. Direct labor cost was $287,500 for 25,000 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The factory overhead is applied on the basis of direct labor hours. A condensed version of the company’s flexible budget follows: The product requires 3 lb of materials at a standard cost of $5 per pound and 2 hours of direct labor at a standard cost of $10 per hour. For the current year, the company planned to operate at the level of 6,250 direct labor hours and to produce 3,125 units of product. Actual production and costs for the year follow: Required: For the current year, compute the factory overhead rate that will be used for production. Show the variable and fixed components that make up the total predetermined rate to be used. Prepare a standard cost card for the product. Show the individual elements of the overhead rate as well as the total rate. Compute (a) standard hours allowed for production and (b) under- or overapplied factory overhead for the year. Determine the reason for any under- or overapplied factory overhead for the year by computing all variances, using each of the following methods: Two-variance method Three-variance method (appendix) Four-variance method (appendix)