Rogers Rods & Reels Ltd.Rogers Rods & Reels Ltd. manufactures and sells various types of fishing equipment. At the end of 2011,Rogers had estimated for the production and sale of 15,000 bass fishing rods. Each rod has a standardcalling for 1.5 pounds of direct material at a standard rate of $8.00 per pound and 15 minutes of directlabor time at a standard rate of $.18 per minute. During 2012, Rogers actually produced and sold 16,000rods. These 16,000 rods had an actual direct materials cost of $179,200 (25,600 pounds at $7.00 perpound) and an actual direct labor cost of $44,800 (224,000 minutes at $.20 per minute). Each rod sellsfor $50.Refer to the Rogers Rods & Reels Ltd. information above. What is Rogers' net operating income based ona flexible budget?579,500564,800O 576,000590,000

Flexible Budget It is the budget which is based on the actual production. It is adjustable to the…

Answered: Refer to the Rogers Rods & Reels Ltd.…

Refer to the Rogers Rods & Reels Ltd. information above. What is Rogers' net operating income based on a flexible budget?

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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Rogers Rods & Reels Ltd. manufactures and sells various types of fishing equipment. At the end of 2011, Rogers had estimated for the production and sale of 15,000 bass fishing rods. Each rod has a standard calling for 1.5 pounds of direct material at a standard rate of $800 per pound and 15 minutes of direct labor time at a standard rate of $.18 per minute. During 2012, Rogers actually produced and sold 16,000 rods. These 16,000 rods had an actual direct materials cost of $179,200 (25,600 pounds at $7.00 per pound) and an actual direct labor cost of $44,800 (224,000 minutes at $.20 per minute). Each rod sells for $50. Refer to the Rogers Rods & Reels Ltd. information above. What is Rogers' flexible budget variance? О 11,200 F О011,200 U 3,500 F 3,500 U
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Shalom Company manufactures and sells Peace products. During the year, the company estimated for the production and sale of 15,000 units of Peace products. Each unit requires 1.50 kilos of direct material at a cost of P8 per pound. It takes 15 minutes to manufacture each unit of Peace product at a cost of PO.18 per minute. At the end of the current year, Shalom had produced and sold 16,000 Peace products for P50 per unit. The actual costs for direct materials and direct labor were P197,200, and P42,300, respectively. In your flexible budget performance report, identify the difference between budgeted and actual costs and indicate as favorable or unfavorable. Format should be: 8,000 F or 8,000 UF No need to indicate if the amount is positive or negative. total prime costs
Relling Corporation manufactures a drink bottle, model CL24. During 2017, Relling produced 210,000 bottles at a total cost of $808,500. Kraff Corporation has offered to supply as many bottles as Relling wants at a cost of $3.75 per bottle. Relling anticipates needing 225,000 bottles each year for the next few years. Q. What is the average cost of manufacturing a drink bottle in 2017? How does it compare to Kraff’s offer?
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A Company started its business in 2010 producing luxury handbags for young ladies. The normal production of handbags at an average of 3,300 units annually. The actual production sales for the year 2019, 2020 and 2021 are as follows Year 2019 2020 2021 Actual production (units) 2,400 3.300 4,200 Sales (units) 2,000 3,500 4,000 The selling price, cost and expenses for the handbags are: RM Selling price per handbag Direct raw materials costs per handbag Direct labour costs per handbag Variable manufacturing overhead per handbag Fixed manufacturing overhead per month Sales commission Selling and administrative expenses per month 10,000 5,000 2,000 1,000 330,000 10% on sales 198,000 Required a) Calculate the product cost per unit of handbag by using absorption costing and variable costing b) Prepare the income statement for year 2019, 2020 and 2021 by using absorption costing
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Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the year just completed: Caldwell buys 100, 100 units at an average unit cost of $11 and sells them at an average unit price of $21. The firm also has fixed operating costs of $250,100 for the year. Caldwell's customers are demanding a 11% discount for the coming year. The company expects to sell the same amount if the demand for price reduction can be met. Caldwell's suppliers, however, are willing to give only a 3% discount. Required: Caldwell has estimated that it can reduce the number of purchase orders to 690 and can decrease the cost of each shipment by $4 with minor changes in its operations. Any further cost savings must come from reengineering the warehousing processes. What is the maximum cost (i.e., target cost) for warehousing if the firm desires to earn the same amount of profit next…