Required:Calculate the company's activity variances for August. (Indicate the effect of each varionce by selecting "F" for favorable, "U" forunfavoreble, and "None" for no effect (i.e., zero voariance). Input all amounts os positive values.)Lavage RapideActivity VariancesFor the Month Ended August 31RevenueExpensesCleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating income Exercise 9-11 (Algo) Activity Variances [LO9-2]Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides estimates concerning the company's costs:Fixed Cost Cost perpec Month Car Washed$ 8.50$0.07Cleaning suppliesElectricityMaintenanceWages and salariesDeprecistionRentAdministrotive expenses$ 1,100$ 0.25S 0. 30$ 4,200$ 8,100$ 2,100$1,60$0.03For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to washi B.400 cars inAugust and to collect an average of $6 30 per car washed. The company actually washed 8,500 cars in August

A budget is a statement that is prepared by the company, government, and the individual based on the…

Required: Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorebie, and "None" for no effect (i.e., zero veriance). Input all amounts as positive values.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income

Required: Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorebie, and "None" for no effect (i.e., zero veriance). Input all amounts as positive values.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.7P

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Problem 10-15 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Flexible Budget Actual Sales (4,000 pools) $ 239,000 $ 239,000 Variable expenses: Variable cost of goods sold* 57,680 70,390 Variable selling expenses 16,000 16,000 Total variable expenses 73,680 86,390 Contribution margin 165,320 152,610 Fixed expenses: Manufacturing overhead 72,000 72,000 Selling and administrative 82,000 82,000 Total fixed expenses 154,000 154,000 Net operating income (loss) $ 11,320 $ (1,390) *Contains direct materials, direct labor, and variable manufacturing overhead. Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to “get things under control.” Upon reviewing the plant’s income statement, Ms. Dunn…
xercise 9-2 (Static) Prepare a Report Showing Revenue and Spending Variances [LO9-2] Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company’s flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 8,000 Revenue ($4.00q) $ 32,000 Expenses: Packing supplies ($0.50q) 4,000 Oyster bed maintenance ($3,200) 3,200 Wages and salaries ($2,900 + $0.30q) 5,300 Shipping ($0.80q) 6,400 Utilities ($830) 830 Other ($450 + $0.05q) 850 Total expense 20,580 Net operating income $ 11,420 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 8,000 Revenue $ 35,200 Expenses: Packing supplies 4,200 Oyster bed maintenance 3,100 Wages and salaries 5,640 Shipping 6,950 Utilities 810 Other 980 Total expense 21,680…
Problem 16-71 (Algo) Find Actual and Budget Amounts from Variances (LO 16-5, 6) J&W Corporation manufactures a new electronic game console. The current standard cost sheet for a game console follows. Direct materials, ? kilograms at $6 per kilogram $ ? per game Direct labor, 0.75 hours at ? per hour ? per game Overhead, 0.75 hours at ? per hour ? per game Total costs $ 39 per game Assume that the following data appeared in J&W’s records at the end of the past month. Actual production 59,000 units Actual sales 56,000 units Materials (131,000 kilograms) ? Materials price variance 58,000 U Materials efficiency variance 42,600 U Direct labor price variance 44,550 U Direct labor (40,500 hours) 741,150 Underapplied overhead (total) 19,900 U There are no materials inventories. Required: a-1. Complete the standard cost sheet for a game console given below.a-2. Prepare a variance analysis for…
E10.13 (LO 4, 5), AP Malea Industries produces a cleaning product that works for the peskiest stains. It’s pricey, but less expensive than hiring a professional cleaning service. The managers at Malea are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed-MOH costs for the year were $2,160,000. The company’s standards for one gallon of cleaning solution are as follows, along with actual information for the month. Standard Quantity per Unit Standard Price DM 0.5 gallons of solution $20.00 per gallon DL 0.3 DL hours $18.00 per DL hour Variable-MOH 2.0 machine hours $2.40 per machine hour Fixed-MOH 2.0 machine hours $4.00 per machine hour Actual results for January: 22,000 gallons were actually produced. Cost of DM purchased was $255,800 for 12,500 gallons of solution. DM used in production was 10,800 gallons. Cost of DL was $122,400 for 7,000 DL hours worked. Variable-MOH cost was $110,300 for 46,800 machine hours used.…
E8-17 Calculating factory overhead: two variances Munoz Manufacturing Co. normally produces 11,000units of product X each month. Each unit requires 2.5hours of direct labor, and factory overhead is applied on a direct labor hour basis. Fixed costs and variable costs in factory overhead at the normal capacity are $2.25and $1.25per direct labor hour, respectively. Cost and production data for May follow: Production for the month. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.500units Direct labor hours used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..19,000hours Factory overhead incurred for: Variable costs . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .. $29,000 Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $51,000 a. Calculate the flexible-budget variance. b. Calculate the production-volume variance. c. Was the total factory overhead under-or overapplied? By what amount?
Problem 10-9 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Incorporated, manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,075 hours each month to produce 2,150 sets of covers. The standard costs associated with this level of production are: Total Per Set of Covers Direct materials $ 54,825 $ 25.50 Direct labor $ 10,750 5.00 Variable manufacturing overhead (based on direct labor-hours) $ 5,375 2.50 $ 33.00 During August, the factory worked only 800 direct labor-hours and produced 2,500 sets of covers. The following actual costs were recorded during the month: Total Per Set of Covers Direct materials (12,500 yards) $ 58,750 $ 23.50 Direct labor $ 13,000 5.20 Variable…
6. If Northern Vale was able to produce all of its annual capacity incurring a direct labor hours of 2% lesser than the total standard direct labor hours allowed but an actual rate of 5% higher than the standard rate, the unfavorable labor spending variance isa. P 142,800b. P 137,200c. P 8,925d. P 8,575 7. Assuming that Mooniyan Division plans to produce 38,000 units of Sacred Hammers for the following year. How much should be the total budgeted factory overhead for the following year?a. 1,120,000b. 1,040,000c. 1,012,000d. 988,000
P10-1A Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours. Standard Unit Costs Total Actual Costs Direct materials: Standard (4 lb. @ $2.20/lb.) $8.80 Actual (38,000 lb. @ $2.00/lb.) $76,000 Direct labor: Standard (2 hr. @ $11.00/hr.) 22.00 Actual (18,500 hr. @ $11.30/hr.) 209,050 Variable overhead: Standard (2 hr. @ $3.00/hr.) 6.00 Actual 54,900 Total $36.80 $339,950 Required…
3. The following information is available from the KANSAN CORP.: Actual factory O/H P15,000 Fixed O/H expenses, actual P7,200 Fixed O/H expenses, budgeted P7,000 Actual hours 3,500 Standard hours 3,800 Variable O/H rate per DLH P2.50 Assuming that Tyro uses a three-way analysis of O/H variances, what is the spending variance?
Problem 9-26 (Algo) Comprehensive Variance Analysis [LO9-4, LO9-5, LO9-6] Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials ? $ 8.00 per yard $ ? Direct labor ? ? ? Variable manufacturing overhead ? $ 2 per direct labor-hour ? Total standard cost per unit $ ? Overhead is applied to production on the basis of direct labor-hours. During March, 600 backpacks were manufactured and sold. Selected information relating to the month’s production is given below: Materials Used Direct Labor Variable Manufacturing Overhead Total standard cost allowed* $ 15,360 $ 9,000 $ 1,800 Actual costs incurred $ 13,965 ? $ 2,985 Materials price variance ? Materials quantity variance $ 600 U Labor rate variance ? Labor efficiency variance ? Variable overhead rate variance ? Variable overhead efficiency variance ? *For the…
Exercise 16-48 (Algo) (Appendix used in requirement [c]) Comprehensive Cost Variance Analysis (LO 16-5, 6, 7) Maple Leaf Production manufactures truck tires. The following information is available for the last operating period. Maple Leaf produced and sold 93,000 tires for $36 each. Budgeted production was 97,000 tires. Standard variable costs per tire follow. Direct materials: 4 pounds at $2.00 $ 8.00 Direct labor: 0.35 hours at $15.00 5.25 Variable production overhead: 0.10 machine-hours at $15 per hour 1.50 Total variable costs $ 14.75 Fixed production overhead costs: Monthly budget $1,458,000 Fixed overhead is applied at the rate of $16.00 per tire. Actual production costs: Direct materials purchased and used: 397,000 pounds at $1.70 $ 674,900 Direct labor: 28,500 hours at $15.30 436,050 Variable overhead: 11,000 machine-hours at $15.70 per hour 172,700 Fixed overhead 1,459,000…
5. Thorne Company has the following information available for the past year. They use machine hours to allocate overhead. Actual total overhead $75,000 Actual fixed overhead $32,500 Actual machine hours 10,000 Standard hours for the units produced 9,500 Standard variable overhead rate $4.50 NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. What is the variable overhead efficiency variance? Is it favorable or unfavorable?