Required: Compute the company's activity variances for May. (Hint: Refer to Exhibit 9-6.)
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- Question 7 Howard Bannister Company budgets the following per-unit costs for the upcoming year: Direct Material Direct Labor Variable Selling Expenses Sales commission $32.54 $21.24 $15.70 $20.10 Howard budgets producing 1,017 units and having 27,370 of total variable overhead, 49,540 of total fixed overhead, and 30,387 of total fixed S&A costs for the year. Howard allocates overhead based on units produced. What is the per-unit cost of inventory under variable costing (i.e., assuming budgets are correct, how much will be the total amount debited to WIP if Howard produces one additional unit)? Round your answer to two decimal places (e.g., 192.37).Exercise 9-7 (Static) Flexible Budgets and Activity Variances [LO9-1, LO9-2] Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses per Month Repair-Hour $ 16.30 $8.60 $ 0.40 $ 1.70 $ 23,200 $ 1,600 $ 6,400 $ 3,480 $ 4,500 Rent Administrative expenses $ 0.80 For example, wages and salaries should be $23,200 plus $16.30 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $44.50 per repair-hour. ces Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Jake's Roof Repair ....*.·.... RE ..... ........Direct labor time variance Maywood City Police uses variance analysis to monitor police staffing. The following table identifies three common police activities, the standard time to perform each activity, and their actual frequency to establish the expected cost to serve these activities. Police Activity Standard Hours per Activity Actual Activities for Year Total Employee Hours Theft 0.60 7,000 4,200 Arrest 1.50 18,000 27,000 Patrol activities 0.30 9,000 2,700 33,900 The police are paid 25 per hour. The actual amount of hours per activity for the year were as follows: Police Activity Actual Hours per Activity Theft 0.75 Arrest 2.00 Patrol activities 0.40 A. Determine the total budgeted cost to perform the three police activities. B. Determine the total actual cost to perform the three police activities. C. Determine the direct labor time variance. D. What does the time variance suggest?
- (Appendix) Calculating factory overhead: four variances Atlanta Adhesives Inc. budgets 15,000 direct labor hours for the year. The total overhead budget is expected to amount to 42,000. The standard cost for a unit of the companys product estimates the variable overhead as follows: The actual data for the period follow: Using the four-variance method, calculate the overhead variances. (Hint: First compute the budgeted fixed overhead rate.)Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:9 Evaluating Variances from Standard Costs Obj. 6 MAD 9-4 Analyze Maywood City Police Department's labor time variance frequency to establish the expected cost to serve these activities. Actual Activities Total Employee for Year Standard Hours Hours Police Activity per Activity 7,000 4,200 Theft 0.60 18,000 27,000 Arrest 1.50 9,000 2,700 Patrol activities 0.30 33,900 The police are paid $25 per hour. The actual amount of hours per activity for the year were as follows: Police Activity Actual Hours per Activity Theft 0.75 Arrest 2.00 Patrol activities 0.40 a. Determine the total budgeted cost to perform the three police activities. b. Determine the total actual cost to perform the three police activities. C. Determine the direct labor time variance. d. What does the time variance suggest?
- Question Content Area Given the following information, determine the activity rate (rounded to the nearest cent) for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 10,000 $57,200 Inspections 23,400 $149,700 Assembly (dlh) 73,800 $394,500 a. $5.61 b. $5.35 c. $6.40 d. $5.72QUESTION 5 The following budgeted profit statement has been prepared using absorption costing principles.A company manufactures and sells a single product which has the following cost and sellingprice structure: P/unit P/unit Selling price P120 Direct material 22 Direct labour 36 Variable overhead 14 Fixed overhead 12 P84 Profit per unit P36 The fixed overhead absorption rate is based on the normal capacity of 2,000 units per month.Assume that the same amount is spent each month on fixed overheads.Budgeted sales for next month are 2,200 units.You are required to calculate:a. The breakeven point, in sales units per month. b. The margin of safety for the next month. c. The budgeted profit for the next month. d. The sales required to achieve a profit of P96,000.Exercise 5: Computation for Overhead Variance and Journal Entries Golden Manufacturers, Inc. applies factory overhead at P8 per direct labor hour. Actual factory overhead and actual labor hours for 19F were P470,500 and 58,000 hours, respectively. Normal capacity is 60,000 hours.
- Task 2 Stone Absorption costing (over- and under absorbtion) Marginal costing Stine is drafting a budget on the absis of the following data: Direct material Direct labour Variable production expenses Fixed production overheads are budgeted at Normal output The selling price is fixed at Information about production and sales Production. Sales January units 7 500 000 5 10 $ per unit 5 $ per unit 8 $ per unit. i) absorption costing ii) marginal costing c) Compare Net profit and make a conclusion 27 000 9.000 30 $ per unit. February units 8500 8 500 $ per month and units per month; March units 9.000 9 500 (a)Prepare a cost card using absorption and marginal costing (b)Set out Income Statements for the months of January and February, using 90 % capacity.Instructions I help Ch. 16 HW Fund. of Varlance Analysis Question 4 (of 4) Save & Exit Submit value: 10.00 points Exercise 16-34 Variable Cost Variances (LO 16-5) The standard direct labor cost per unit for a company was $27 (= $18 per hour x 1.5 hours per unit). During the period, actual direct labor costs amounted to $178,700, 9,800 labor-hours were worked, and 5,800 units were produced. Required: Compute the direct labor price and efficiency variances for the period. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Price variance Efficiency variance 6.51 AM 10/13/2020 O Type here to search 4.Question 1 Not complete Direct material Direct labor Variable overhead Fixed overhead Total Using Flexible Budgets The following summary data are from a performance report for Sterling Company for May, during which 9,600 units were produced. The budget reflects the company's normal capacity of 10,000 units. Actual Cost Budget 9,600 10,000 units units $ $136,800 $140,000 $(3,200) Favorable Type Marked out of 6.25 Direct material $ Direct labor Variable overhead Fixed overhead Totals PFlag question $ Variances a. Prepare a new performance report using flexible budgeting. Round all amounts to the nearest dollar. Variance Actual Costs 277,200 280,000 (2,800) Favorable 98,400 96,000 2,400 Unfavorable 72,400 72,000 400 Unfavorable $584,800 $588,000 $(3,200) $ 0 $ Flexible Budget $ 0 $ $ b. Which of the two performance reports should Sterling Company management use to measure the company's operating efficiency in May? ◆ 0 Type ♦ + + ◆
