Jerry Jay is the CEO of Jerry's Jackets (JJ). In June, Jerry expects to produce and sell 3100 jackets, and he expects his June utilities cost to be $8,000 plus $0.70 per jacket. After the month ended, it was reported that 3000 jackets were sold in June and $10,190 was spent on utilities. What is the spending variance for utilities in June? Round to the nearest whole number. If the variance is Favorable, enter a positive value. If unfavorable, enter a negative value.

Jerry Jay is the CEO of Jerry's Jackets (JJ). In June, Jerry expects to produce and sell 3100 jackets, and he expects his June utilities cost to be $8,000 plus $0.70 per jacket. After the month ended, it was reported that 3000 jackets were sold in June and $10,190 was spent on utilities. What is the spending variance for utilities in June? Round to the nearest whole number. If the variance is Favorable, enter a positive value. If unfavorable, enter a negative value.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 25E: Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000...

See similar textbooks

Similar questions

Jerry Jay is the CEO of Jerry's Jackets (JJ). In June, Jerry expects to produce and sell 3100 jackets, and he expects his June utilities cost to be $8,000 plus $0.60 per jacket. After the month ended, it was reported that 2990 jackets were sold in June and $10,190 was spent on utilities. What is the activity variance for utilities in June? Round to the nearest whole number. If the variance is Favorable, enter a positive value. If unfavorable, enter a negative value.
Holland Company is a garden products wholesale firm. In December, Holland Company expects to sell 84,000 bags of vegetable fertilizer at an average price of $8.75 per bag. Actual results are 85,000 bags sold at an average price of $8.50 per bag. REQUIRED: 1. Calculate the sales price variance for December. 2. Calculate the sales volume variance for December. 3. Calculate the overall sales variance for December. Explain why it is favorable or unfavorable. What if December sales were actually 83,500 bags? How would that affect the sales price variance? The sales volume variance? The overall sales variance?
Easy Clean operates a chain of dry cleaners. It is experimenting with the use of a continuous-improvement (i.e., kaizen) budget for operating expenses. Currently, a typical location has operating expenses of $30,000 per month. Plans are in place to achieve labor and utility savings. The associated operational changes are estimated to reduce monthly operating expenses by a factor of 0.99 beginning in January. What are the estimated operating expenses for January, June, and December? Please do not round intermediate calculations
Bandar Industries manufàctures sporting equipment. During the quarter ending June 30, the company manufactured 30,000 helmets, using 15,800 kilograms of plastic. The actual plastic cost $112,000. According to standard costs, each helmet should require 0.5 kilgrams of plastic at a cost of $7 per kilogram. 1. What is the materials price variance (dollars)? 2. Is the materials price variance favorable or unfavorable? 3. What is the materials quantity variance (dollars)? 4. Is the materials quantity variance favorable or unfavorable? 5. What is the total materials variance (dollars)? 6. Is the total materials variance favorable or unfavorable? Enter your answers in the same order as above.
Jerry Jay is the CEO of Jerry's Jackets (JJ). In June, Jerry expects to produce and sell 3100 jackets, and he expects his June utilities cost to be $8,000 plus $0.70 per jacket. After the month ended, it was reported that 3000 jackets were sold in June and $10,190 was spent on utilities. What is the spending variance for utilities in June?
Campbell Industries has gathered the following information about the actual sales revenues and expenses for its pharmaceuticals segment for the most recent year. E (Click the icon to view the actual data.) Prepare a segment margin performance report for the pharmaceutical segment. Calculate a variance and a variance percentage for each line in the report. Round to the nearest hundredth for the variance percentages (for example, if your answer is 16.2384%, round it to 16.24%). Budgeted data for the same time period for the pharmaceutical segment are as follows (all data are in millions): E (Click the icon to view the budgeted data.) Begin by preparing the performance report through the contribution margin line. Next, complete the report through the segment margin line, and then, finally, complete the report through the operating income line. (Enter the variances as positive numbers. Round the variance percentages to the nearest hundredth percent, X.XX%.) Performance Report Data table…
9. Determine the price-volume variance ($). Note: The Answer field only accepts numbers. Thus, do not include $ or commas when you type your answer. Type your answer as a whole number. Assume that your hotel has a restaurant. The restaurant projected 3,000 lunches to be sold for September at an average price of $5.50. The actual sales were 3,200 meals and food revenue of $18,400. Use the information above and the table below to solve the questions. Meals (# of units) Price/unit Total Revenue Budget 3,000 $5.5 ? Actual 3,200 ? $18,400
A 100-room hotel budgeted an occupancy of 75% and an average room rate of $100 per room for year 2020. Actual occupancy was 50% and average room rate was $90. Assume 365 days in a year. Find the variance in total room revenue, variance in rooms sold and variance in average room rate, and then use the variance analysis matrix to find the constituents in total rooms revenue variance by breaking it up into price variance and quantity variance.
Washington WaterWorks manufactures snorkel gear. During the past month, Washington purchased 4,000 pounds of plastic to use in its dive masks, at a cost of $6,800. The standard price for the plastic is $1.60 per pound. The company actually used 3,800 pounds of the plastic to produce 15,000 dive masks. Required Calculate Washington's direct materials price variance for the month. What's the equation/steps to do this problem?
7. Determine the volume variance ($). Note: The Answer field only accepts numbers. Thus, do not include $ or commas when you type your answer. Type your answer as a whole number. Assume that your hotel has a restaurant. The restaurant projected 3,000 lunches to be sold for September at an average price of $5.50. The actual sales were 3,200 meals and food revenue of $18,400. Use the information above and the table below to solve the questions. Meals (# of units) Price/unit Total Revenue Budget 3,000 $5.5 ? Actual 3,200 ? $18,400
The production cost for a waterproof phone case is $7 per unit and fixed costs are $23,000 per month. How much is the favorable or unfavorable variance if 5,500 units were produced for an actual total of $61,000? PLEASE NOTE: Question 1: All dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). Question 2: Your answer is either "Favorable" or "Unfavorable" - no quotation marks. Total variance = Favorable or unfavorable?
The production cost for a waterproof phone case is $9 per unit and fixed costs are $28,000 per month. How much is the favorable or unfavorable variance if 5,800 units were produced for a total of $79,500? Enter the amount as positive number. O variance $ Favorable Unfavorable