Golden Inc. produces swimsuits. The following budgeted and actual amounts are for 2020: Cost Budget at 5,000 Units Actual 5,800 Units Direct materials $60,000 $71,000 Direct labor 75,000 86,500 Equipment depreciation 5,000 5,000 Indirect labor 7,500 8,600 Indirect materials 9,000 9,600 Rent and insurance 12,000 13,000 Instructions Prepare a consolidated actual vs. budget variance report for Golden Inc. for the year and answer the following question. What is the total budget variance? Indicate only the number

Golden Inc. produces swimsuits. The following budgeted and actual amounts are for 2020: Cost Budget at 5,000 Units Actual 5,800 Units Direct materials $60,000 $71,000 Direct labor 75,000 86,500 Equipment depreciation 5,000 5,000 Indirect labor 7,500 8,600 Indirect materials 9,000 9,600 Rent and insurance 12,000 13,000 Instructions Prepare a consolidated actual vs. budget variance report for Golden Inc. for the year and answer the following question. What is the total budget variance? Indicate only the number

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ivanhoe Clothing produces men’s athletic socks. The following budgeted and actual amounts are for 2022: Cost Budget at 6,500 Units Actual Amounts at 7,300 Units Direct materials $78,000 $89,360 Direct labor 97,500 108,870 Equipment depreciation 6,500 6,500 Indirect labor 9,750 10,820 Indirect materials 11,700 12,080 Rent and insurance 13,500 14,650 Prepare a flexible budget report for Ivanhoe Clothing for the year.
Sutton’s Electronic Repair Shop has budgeted the following time and material for 2020. SUTTON’S ELECTRONIC REPAIR SHOPBudgeted Costs for the Year 2020 Time Charges Material Loading Charges Shop employees’ wages and benefits $118,800 ― Parts manager’s salary and benefits ― $25,400 Office employee’s salary and benefits 20,520 13,990 Overhead (supplies, depreciation, advertising, utilities) 28,080 20,200 Total budgeted costs $167,400 $59,590 Sutton’s budgets 5,400 hours of repair time in 2020 and will bill a profit of $14 per labor hour along with a 21% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $101,000.On January 5, 2020, Sutton’s is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton’s estimates that this job will consume 9 hours of labor and $300 in parts. Calculate the time-and-material price quotation for fixing the…
Sutton’s Electronic Repair Shop has budgeted the following time and material for 2020. SUTTON’S ELECTRONIC REPAIR SHOPBudgeted Costs for the Year 2020 Time Charges Material Loading Charges Shop employees’ wages and benefits $118,800 ― Parts manager’s salary and benefits ― $25,400 Office employee’s salary and benefits 20,520 13,990 Overhead (supplies, depreciation, advertising, utilities) 28,080 20,200 Total budgeted costs $167,400 $59,590 Sutton’s budgets 5,400 hours of repair time in 2020 and will bill a profit of $14 per labor hour along with a 21% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $101,000.On January 5, 2020, Sutton’s is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton’s estimates that this job will consume 9 hours of labor and $300 in parts. (a) Compute the labor…
The budget for the plant in 2020 is as follows: Production plant Machine department Assembly department Manufacturing overhead costs 13 597 500 12 271 500 Direct manufacturing labor costs 1 455 000 6 075 000 Direct manufacturing labor-hours 54 000 22 500 Machine-hours 277 500 55 500 What is the budgeted manufacturing overhead rate in the machining and the assembly department? Assume the following amounts appeared at the end of 2020: Production plant Machine department Assembly department Manufacturing overhead costs incurred 15,000,000 11,973,000 Direct manufacturing labor costs 1,545,000 6,150,000 Machine-hours 300,000 51,000 4 Compute the under- or overallocated manufacturing overhead for each department and for the production plant as a whole. 5)Briefly explain why Canadian Company in Dubai uses two different manufacturing overhead cost pools in its job-costing…
Sutton’s Electronic Repair Shop has budgeted the following time and material for 2020. SUTTON’S ELECTRONIC REPAIR SHOPBudgeted Costs for the Year 2020 Time Charges Material Loading Charges Shop employees’ wages and benefits $118,800 ― Parts manager’s salary and benefits ― $25,400 Office employee’s salary and benefits 20,520 13,990 Overhead (supplies, depreciation, advertising, utilities) 28,080 20,200 Total budgeted costs $167,400 $59,590 Sutton’s budgets 5,400 hours of repair time in 2020 and will bill a profit of $14 per labor hour along with a 21% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $101,000.On January 5, 2020, Sutton’s is asked to submit a price estimate to fix a 72-inch flat-screen TV. Sutton’s estimates that this job will consume 9 hours of labor and $300 in parts. Compute the material loading charge percentage for Sutton’s Electronic…
2. AP Sutton's Electronic Repair Shop has budgeted the following time and material for 2020. d Sutton's Electronic Repair Shop Budgeted Costs for the Year 2020 Time Charges Material Loading Charges Aatici, Shop employees' wages and benefits $108,000 Parts manager's salary and benefits $25,400 - Office employee's salary and benefits 13,600 23,500 Overhead (supplies, depreciation, advertising, utilities) 26,000 16,000 Total budgeted costs Sutton's budgets 5,000 hours of repair time in 2020 and will bill a profit of $10 per labor hour along with a 25% profit markup on the invoice cost of parts. The estimated invoice cost for parts to be used is $100,00o. $157,500 $55,000 ect 15 On January 5, 2020, Sutton's is asked to submit a price estimate to fix a 72-inch flat- screen TV. Sutton's estimates that this job will consume 4 hours of labor and $200 in parts. Instructions a. Compute the labor rate for Sutton's Electronic Repair Shop for the year 2020. b. Compute the material loading charge…
Automatic Irrigation, Inc. is preparing its manufacturing overhead budget for the 2022 year. Relevant data consist of the following: Qtr. 4 Qtr. 1 Qtr. 2 Qtr. 3 Control Units to be produced (by quarters): 6,000 10,000 12,000 9,000 Direct labor time: 1 hour per unit Variable overhead costs per direct labor hour: Indirect Materials $0.90; Indirect Labor $1.40; and Maintenance $0.50. Fixed overhead costs per quarter: Supervisory salaries $27,600; depreciation $4,000; and maintenance $1,900. Required Prepare the manufacturing overhead budget for the 2022 year showing quarterly data.
Gibco Service has budgeted the following time-and-material for 2019: Budgeted Costs For 2019 Time Material Charges Charges Painters' wages and benefits $54,000 Service manager's salary and benefits $44,000 Office employee's salary and benefits 7,400 6,000 Cost of paint 50,000 Overhead (supplies, utilities, etc.) 14,000 22,000 Gibco budgets 2,000 hours of paint time in 2019 and will charge a profit of $8 per hour on the labour rate, in addition to a 12% mark-up on the cost of paint. On February 15, 2019, Gibco is asked to prepare a price estimate to paint a building. Gibco estimates that this job will take 25 labour hours and $900 in paint. 1.Calculate the material loading charge rate % for 2019 2. What is the planned profit for the year? Do not enter $ or commas.
Jimbo has three production departments and a support department. The budgeted production overhead cost for the year ended 31st December 2020 is as follows: $ Indirect wages Department Assembly Department Painting Department Packaging Support Department 23,000 30,000 26,000 18,800 To be allocated Other cost Consumable materials 20,000 Insurance: Plant 30,000 Depreciation: Plant 22,000 Power 15,000 Rent 21,000 Light and heat 14,000 The following is the data of an appropriate basis of apportionment: Department Department Department Painting 15,000 Support Department 12,500 Assembly Packaging Floor space (m2) Book value of plant($) 22,500 20,000 140,000 180,000 70,000 10,000 Electricity Kwhs 80 100 15 5 Machine hours 110,000 150,000 140,000 Number of store 180 120 100 requisitions (materials) Direct labour hrs 80,000 120,000 100,000 The support department's overhead should be apportioned based on direct labour hours. Required: a) Prepare the overhead analysis statement showing clearly the…
Scarborough Corporation manufactures and sells two products: D-One and D-Two. In July 2018, Scarborough budget department gathered the following data to prepare budgets for 2019: 2019 Projected Sales: Product D-One Units 60,000 40,000 Price $165 $250 D-Two 2019 Inventories in Units: Expected Target January 1, 2019 20,000 8,000 Product December 31, 2019 25,000 9,000 D-One D-Two The following direct materials are used in the two products: Amount Used per Unit Direct material Unit D-One D-Two kilogram kilogram A 4 5 2 3 each 1 Projected data for 2019 with respect to direct materials are as follows: Expected Inventories January 1, 2019 32,000 kg 29,000 kg 6,000 units Direct material Anticipated Purchase price $12 5 Target Inventories December 31, 2019 36,000 kg 32,000 kg 7,000 units A B C 3 Projected direct labour requirements and rates for 2019 are as follows: Product D-One D- Two Hours per unit Rate per hour $12 2 3 16 Based on the preceding projections and budget requirements for D-One…
In 2020, Top-Spin Racquet Company produced 64,000 tennis racquets and incurred total Direct Material costs of $2,240,000. Top-Spin expects materials costs to increase by 5% in 2021 and expects to produce 68,000 tennis racquets in 2021. What is Top-Spin's total budgeted Direct Materials cost for 2021? $2,380,000 $2,499,000 $2,352,000 $2,240,000
Stephanie Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants furnish the data shown below: Product JB50 Product JB 60 Sales budget Anticipated volume in units 400,000 200,000 Unit selling price $20 $25 Production budget Desired ending FGU’s 25,000 15,000 Beginning FGU’s 30,000 10,000’ Direct materials budget Direct materials per unit (pounds) 2 3 Desired ending direct materials (lbs) 30,000 15,000 Beginning direct materials pounds 40,000 10,000 Cost per pound $3 $4 Direct labor budget Direct labor time per unit 0.4 0.6 Direct labor rate per hour $12 $12 Budgeted income statement Total unit cost $12 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $660,000 for product JB 50 and $360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and $340,000 for product JB 60. Income…