SYour next-door neighbor recently began a new job as assistant controller for Conundrum Corporation. As her firstassignment, she prepared a performance report for January. She was scheduled to present the report to managementthe next morning, so she brought it home to review. As the two of you chatted in the backyard, she decided to showyou the report she had prepared. Unfortunately, your dog thought the report was an object to be fetched. The pupmade a flying leap and got a firm grip on the report. After chasing the dog around the block, you managed to wrest thereport from its teeth. Needless to say, it was torn to bits. Only certain data are legible on the report. This informationfollows:CONUNDRUM CORPORATIONPerformance Report for the Month of JanuaryDirectMaterial?(?kilogramsat $10 perkilogram)Standard allowed cost givenactual outputFlexible overhead budgetActual costDirect-material pricevarianceDirect-material quantityvarianceDirect-labor rate varianceDirect-labor efficiencyvarianceVariable-overhead spendingVariable-overheadvarianceefficiency varianceFixed-overhead budgetvarianceFixed-overhead volumevariance$203,000(14,000kilogramsat $14.5kilogramper)?$ 6,300 U1. Planned production (in units).2. Actual production (in units).3. Actual fixed overhead.DirectLabor?4. Total standard allowed direct-labor hours.5. Actual direct-labor rate.6.(2 hoursat $15per hour)Standard variable-overhead rate (per direct-labor hour.)Actual variable-overhead rate (per direct-labor hour.)?(10,800hoursat ? perhour)7.8. Standard direct-material quantity per unit.9. Direct-material price variance.10 Applied fixed overhead.11.Fixed-overhead volume variance.$10,800 U6,000 F2,000 FVariable FixedOverhead Overhead? $48,000??In addition to the fragmentary data still legible on the performance report, your neighbor happened to remember thefollowing facts.$2,630 UPlanned production of Conundrum's sole product was 400 units more than the actual production.All of the direct material purchased in January was used in production.There were no beginning or ending inventories.Variable and fixed overhead are applied on the basis of direct-labor hours. The fixed overhead rate is $4.00 per hour.$3,850 URequired:Feeling guilty, you have agreed to help your neighbor reconstruct the following facts, which will be necessary for herpresentation. (Do not round your intermediate calculations. Round "Actual variable-overhead rate" to 2 decimalplace, and "Standard direct-material quantity per unit" to nearest whole number. Indicate the effect of eachvariance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).)?

Costing is a method of ascertaining the total cost of goods and services. Costing is usually used to…

Your next-door neighbor recently began a new job as assistant controller for Conundrum Corporation. As her first assignment, she prepared a performance report for January. She was scheduled to present the report to management the next morning, so she brought it home to review. As the two of you chatted in the backyard, she decided to show you the report she had prepared. Unfortunately, your dog thought the report was an object to be fetched. The pup made a flying leap and got a firm grip on the report. After chasing the dog around the block, you managed to wrest the report from its teeth. Needless to say, it was torn to bits. Only certain data are legible on the report. This information follows: CONUNDRUM CORPORATION Performance Report for the Month of January Direct Direct Material Labor ? Standard allowed cost given actual output Flexible overhead budget Actual cost Direct-material price variance Direct-material quantity variance Direct-labor rate variance Direct-labor efficiency variance Variable-overhead spending Variable-overhead variance efficiency variance. Fixed-overhead budget variance Fixed-overhead volume variance ? (? kilograms at $10 per kilogram) $203,000 (14,000 kilograms at $14.5 kilogram per) ? $ 6,300 U (2 hours at $15 per hour) 1. Planned production (in units). 2. Actual production (in units). 3. Actual fixed overhead. 4. Total standard allowed direct-labor hours. 5. Actual direct-labor rate. 6. ? (10,800 hours at ? per hour) Standard variable-overhead rate (per direct- labor hour.) Actual variable-overhead rate (per direct- labor hour.) $10,800 U 6,000 F 7. 8. Standard direct-material quantity per unit. 9. Direct-material price variance. 10 Applied fixed overhead. 11.Fixed-overhead volume variance. 2,000 F Variable Fixed Overhead Overhead ? ? $2,630 U $3,850 U In addition to the fragmentary data still legible on the performance report, your neighbor happened to remember the following facts. ? Planned production of Conundrum's sole product was 400 units more than the actual production. • All of the direct material purchased in January was used in production. . There were no beginning or ending inventories. Variable and fixed overhead are applied on the basis of direct-labor hours. The fixed overhead rate is $4.00 per hour. $48,000 ? Required: Feeling guilty, you have agreed to help your neighbor reconstruct the following facts, which will be necessary for her presentation. (Do not round your intermediate calculations. Round "Actual variable-overhead rate" to 2 decimal place, and "Standard direct-material quantity per unit" to nearest whole number. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).)

Your next-door neighbor recently began a new job as assistant controller for Conundrum Corporation. As her first assignment, she prepared a performance report for January. She was scheduled to present the report to management the next morning, so she brought it home to review. As the two of you chatted in the backyard, she decided to show you the report she had prepared. Unfortunately, your dog thought the report was an object to be fetched. The pup made a flying leap and got a firm grip on the report. After chasing the dog around the block, you managed to wrest the report from its teeth. Needless to say, it was torn to bits. Only certain data are legible on the report. This information follows: CONUNDRUM CORPORATION Performance Report for the Month of January Direct Direct Material Labor ? Standard allowed cost given actual output Flexible overhead budget Actual cost Direct-material price variance Direct-material quantity variance Direct-labor rate variance Direct-labor efficiency variance Variable-overhead spending Variable-overhead variance efficiency variance. Fixed-overhead budget variance Fixed-overhead volume variance ? (? kilograms at $10 per kilogram) $203,000 (14,000 kilograms at $14.5 kilogram per) ? $ 6,300 U (2 hours at $15 per hour) 1. Planned production (in units). 2. Actual production (in units). 3. Actual fixed overhead. 4. Total standard allowed direct-labor hours. 5. Actual direct-labor rate. 6. ? (10,800 hours at ? per hour) Standard variable-overhead rate (per direct- labor hour.) Actual variable-overhead rate (per direct- labor hour.) $10,800 U 6,000 F 7. 8. Standard direct-material quantity per unit. 9. Direct-material price variance. 10 Applied fixed overhead. 11.Fixed-overhead volume variance. 2,000 F Variable Fixed Overhead Overhead ? ? $2,630 U $3,850 U In addition to the fragmentary data still legible on the performance report, your neighbor happened to remember the following facts. ? Planned production of Conundrum's sole product was 400 units more than the actual production. • All of the direct material purchased in January was used in production. . There were no beginning or ending inventories. Variable and fixed overhead are applied on the basis of direct-labor hours. The fixed overhead rate is $4.00 per hour. $48,000 ? Required: Feeling guilty, you have agreed to help your neighbor reconstruct the following facts, which will be necessary for her presentation. (Do not round your intermediate calculations. Round "Actual variable-overhead rate" to 2 decimal place, and "Standard direct-material quantity per unit" to nearest whole number. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance).)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 70IIP

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