Water Sports Company budgets overhead cost of $840,000 for the year. The company manufactures two types of boats: Pontoons and Speedboats. Budgeted direct labor hours per unit are 16 for the Pontoon model and 24 for the Speedboat model. The company budgets production of 200 units of the Pontoon model and 200 units of the Speedboat model for the year. What is the total number of budgeted direct labor hours for the year? Multiple Choice O 400 direct labor hours. 1,600 direct labor hours. 3,200 direct labor hours. 8,000 direct labor hours. 4,000 direct labor hours.

Water Sports Company budgets overhead cost of $840,000 for the year. The company manufactures two types of boats: Pontoons and Speedboats. Budgeted direct labor hours per unit are 16 for the Pontoon model and 24 for the Speedboat model. The company budgets production of 200 units of the Pontoon model and 200 units of the Speedboat model for the year. What is the total number of budgeted direct labor hours for the year? Multiple Choice O 400 direct labor hours. 1,600 direct labor hours. 3,200 direct labor hours. 8,000 direct labor hours. 4,000 direct labor hours.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 2BE: Multiple production department factory overhead rates The total factory overhead for Bardot Marine...

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Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. c. Interpret the budget performance report.
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Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. At the end of the year, actual sales revenue for Product R and Product S was 3,075,000 and 3,254,000, respectively. The actual price charged for Product R was 25 and for Product S was 20. Only 10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled 540,000 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product?
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