Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 7, Problem 17EB
The production cost for UV protective sunglasses is $5.50 per unit and fixed costs are $19,400 per month. How much is the favorable or unfavorable variance if 14,000 units were produced for a total of $97,000?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
ACE CORP HAS THE FOLLOWING DL STANDARDS:
DLHRS/UNIT 1.25
DL COST/HR $32
ACE USED 21,780 DLHRS TO PRODUCE 18,000 UNITS. ACTUAL DL COSTS = $713,295.
WHAT IS THE AMOUNT OF THE DL PRICE VARIANCE? ___________
IS THE VARIANCE FAVORABLE OR UNFAVORABLE? ___________
REFER TO QUESTION 1.
WHAT IS THE AMOUNT OF THE DL EFFICIENCY VARIANCE? _________
IS THE VARIANCE FAVORABLE OR UNFAVORABLE__________
The production cost for a waterproof phone case is $9 per unit and fixed costs are $27,000 per month. How much is the favorable or unfavorable variance if 5,000 units were produced for a total of $71,600? Enter the amount as positive number.
(favorable or unfavorable) variance _____?
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?
Chapter 7 Solutions
Principles of Accounting Volume 2
Ch. 7 - Which of the following is not a part of budgeting?...Ch. 7 - Which of the following is an operating budget? A....Ch. 7 - Which of the following is a finance budget? A....Ch. 7 - Which approach is most likely to result in...Ch. 7 - Which approach requires management to justify all...Ch. 7 - Which of the following is true in a bottom-up...Ch. 7 - The most common budget is prepared for a...Ch. 7 - Which of the operating budgets is prepared first?...Ch. 7 - The direct materials budget is prepared using...Ch. 7 - Which of the following is not an operating budget?...
Ch. 7 - Which of the following statements is not correct?...Ch. 7 - The units required in production each period are...Ch. 7 - The cash budget is part of which category of...Ch. 7 - Which is not a section of the cash budget? cash...Ch. 7 - Which budget is the starting point in preparing...Ch. 7 - Which of the following includes only financial...Ch. 7 - Which budget evaluates the results of operations...Ch. 7 - What is the main difference between static and...Ch. 7 - What is a budget and what are the different types...Ch. 7 - What is the difference between budgeting and...Ch. 7 - What are the advantages and disadvantages of the...Ch. 7 - Why might a rolling budget require more management...Ch. 7 - What information is necessary for the operating...Ch. 7 - What operating budget exists for manufacturing but...Ch. 7 - What is the process for developing a budgeted...Ch. 7 - Which of the financial budgets is the most...Ch. 7 - A company has prepared the operating budget and...Ch. 7 - Fill in the blanks: A flexible budget summarizes...Ch. 7 - What information is included in the capital asset...Ch. 7 - Why does budget planning typically begin with the...Ch. 7 - What steps should be considered it a budget is to...Ch. 7 - Blue Book printing is budgeting sales of 25,000...Ch. 7 - How many units are in beginning inventory it...Ch. 7 - Navigator sells GPS trackers for $50 each. It...Ch. 7 - One Device makes universal remote controls and...Ch. 7 - Sunrise Poles manufactures hiking poles and is...Ch. 7 - Given the following information from Rowdy...Ch. 7 - Each unit requires direct labor of 2.2 hours. The...Ch. 7 - How many units are estimated to be sold it...Ch. 7 - Cash collections for Wax On Candles found that 60%...Ch. 7 - Nonnas Re-Appliance Store collects 55% of its...Ch. 7 - Dream Big Pillow Co. pays 65% of its purchases in...Ch. 7 - Desiccate purchases direct materials each month....Ch. 7 - What is the amount of budgeted cash payments if...Ch. 7 - Halifax Shoes has 30% of its sales in cash and the...Ch. 7 - Cold X, Inc. uses this information when preparing...Ch. 7 - Using the provided budgeted information for...Ch. 7 - The production cost for a waterproof phone case is...Ch. 7 - Lovely Wedding printing is budgeting sales of...Ch. 7 - How many units are in beginning inventory if...Ch. 7 - Barnstormer sells airplane accessories for $20...Ch. 7 - Rehydrator makes a nutrition additive and expects...Ch. 7 - Cloud Shoes manufactures recovery sandals and is...Ch. 7 - Given the following information from Power...Ch. 7 - Each unit requires direct labor of 4.1 hours. The...Ch. 7 - How many units are estimated to be sold if Kino,...Ch. 7 - Cash collections for Renew Lights found that 65%...Ch. 7 - My Aunts Closet Store collects 60% of its accounts...Ch. 7 - Gear Up Co. pays 65% of its purchases in the month...Ch. 7 - Drainee purchases direct materials each month. Its...Ch. 7 - What is the amount of budgeted cash payments if...Ch. 7 - Earthies Shoes has 55% of its sales in cash and...Ch. 7 - Judges Gavel uses this information when preparing...Ch. 7 - Using the following budgeted information for...Ch. 7 - The production cost for UV protective sunglasses...Ch. 7 - Lens Junction sells lenses for $45 each and is...Ch. 7 - The data shown were obtained from the financial...Ch. 7 - Echo Amplifiers prepared the following sales...Ch. 7 - Prepare a budgeted income statement using the...Ch. 7 - Spree Party Lights overhead expenses are: Prepare...Ch. 7 - Relevant data from the Poster Companys operating...Ch. 7 - Fill in the missing information from the following...Ch. 7 - Direct labor hours are estimated as 2,000 in...Ch. 7 - Fitbands estimated sales are: What are the...Ch. 7 - Sports Socks has a policy of always paying within...Ch. 7 - Prepare a flexible budgeted income for 120,000...Ch. 7 - Before the year began, the following static budget...Ch. 7 - Caribbean Hammocks currently sells 75.000 units at...Ch. 7 - Total Pops data show the following information:...Ch. 7 - Identify the document that contains the...Ch. 7 - Titanium Blades refines titanium for use in all...Ch. 7 - Lens & Shades sells sunglasses for $37 each and is...Ch. 7 - The following data were obtained from the...Ch. 7 - TIB makes custom guitars and prepared the...Ch. 7 - Prepare a budgeted income statement using the...Ch. 7 - Prepare a budgeted income statement using the...Ch. 7 - Relevant data from the operating budget of The...Ch. 7 - Fill in the missing information from the following...Ch. 7 - Mesa Aquatics, Inc. estimated direct labor hours...Ch. 7 - Amusement tickets estimated sales are: What are...Ch. 7 - All Temps has a policy of always paying within the...Ch. 7 - Prepare a flexible budgeted income statement for...Ch. 7 - Before the year began, the following static budget...Ch. 7 - Artic Camping Gears currently sells 35,000 units...Ch. 7 - Prob. 14PBCh. 7 - Identify the document that contains the...Ch. 7 - Replenish sells shampoo that removes chlorine from...Ch. 7 - Why is a clear understanding of managements goals...Ch. 7 - It is proper budgeting procedure to begin with...Ch. 7 - How would a human resources department use...Ch. 7 - How would maintenance departments use information...Ch. 7 - How might service industries predict revenue?Ch. 7 - The management of Hess, Inc., is developing a...Ch. 7 - When would a static budget be effective in...Ch. 7 - If management is being evaluated on their ability...Ch. 7 - If management is being evaluated on their ability...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Quick ratio and current ratio (Learning Objective 7) 1520 min. Consider the following data: COMPANY A B C D Cas...
Financial Accounting, Student Value Edition (4th Edition)
(Record inventory transactions in the periodic system) Wexton Technologies began the year with inventory of 560...
Financial Accounting (12th Edition) (What's New in Accounting)
Fraud Case 12-1
Bill and Edna had been married two years and had just reached the point where they had enough s...
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
The accounting assumption that governs given situation.
Financial Accounting (11th Edition)
Discussion Analysis A13-41 Discussion Questions 1. How do managers use the statement of cash flows? 2. Describ...
Managerial Accounting (4th Edition)
E4–16 Preparing the financial statements
The adjusted trial balance for Green Advertising Services is present...
Horngren's Accounting (12th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 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 a total of $61,000?arrow_forwardBandar 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.arrow_forward8. 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?arrow_forward
- o Yealink Company produces a product that requires 5.0 standard pounds per unit. The standard price is $7.50 per pound. If 30,000 units used 72,000 pounds, which were purchased at $8.00 per pound, what is the direct materials (A) price variance, (B) quantity variance, and (C) cost variance?arrow_forwardThe production cost for a waterproof phone case is $5 per unit and fixed costs are $27,110 per month. How much is the favorable or unfavorable variance if 5,216 units were produced for a total of $65,014? Enter a favorable variance as a positive number. Enter an unfavorable variable as a negative number with a - sign. Do not use parentheses. Round to the whole dollar, no decimal places.arrow_forwardSunshine Company has the following direct labor standard for its Sunny Sunglasses. 1.2 standard hours per sunglass at $10.00 per hour Last month, employees actually worked 2,500 hours at a total labor cost of $26,250 to make 2,000 sunglasses. What is the labor rate variance? What is the labor efficiency variance? Identify the possible reasons for the variances? Who will be held responsible for the variances found?arrow_forward
- What is the amount of the Factory OH Volume Variance, given the following info: Actual production = 5,000 units Actual Costs = $202,500.00 for variable FOH + $60,000.00 for fixed FOH Budgeted Costs = $250,000 (standard hours for 5,000 units produced of 25,000 hours * standard FOH rate of $10.00) The standard OH rate = $10.00 per DL hour ($8.00 for variable FOH and $2.00 for fixed FOH) based on 100% capacity of 30,000 DL hours Group of answer choices $12,500.00 favorable $12,500.00 unfavorable $10,000.00 favorable $10,000.00 unfavorablearrow_forwardBellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.75 per pound. 16,000 units used 35,800 pounds, which were purchased at $3.90 per pound. What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ b. Direct materials quantity variance $ c. Direct materials cost variance $arrow_forwardBellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price is $3.75 per pound. If 15,000 units used 36,000 pounds, which were purchased at $4.00 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance?arrow_forward
- A company uses 20,000 pounds of materials for which it paid P6.00 a pound. The materials price variance was P30,000 unfavorable. What is the standard price per pound?arrow_forwardBellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $21.00 per hour. 15,100 units used 65,100 hours at an hourly rate of $19.35 per hour. What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance $ b. Direct labor time variance $ c. Direct labor cost variance $arrow_forwardBellingham Company produces a product that requires five standard pounds per unit. The standard price is $3 per pound. If 5,900 units used 30,700 pounds, which were purchased at $2.91 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance $ b. Direct materials quantity variance $ c. Direct materials cost variance $arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
What is Risk Management? | Risk Management process; Author: Educationleaves;https://www.youtube.com/watch?v=IP-E75FGFkU;License: Standard youtube license