Acme Company's production budget for August is 23,000 units and includes the following component unit costs: direct materials,$9.00; direct labor, $11.00; variable overhead, $5.80. Budgeted fixed overhead is $49,000. Actual production in August was 24,075units. Actual unit component costs incurred during August include direct materials, $10.00; direct labor, $10.00; variable overhead,$6.80. Actual fixed overhead was $52,200.Required:Prepare a performance report, including each cost component.Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance).Cost ComponentDirect materialsDirect laborVariable overheadFixed overheadTotal budgeted costOriginal Budget(23,000 units)Flexed BudgetActual CostBudget Variance(24,075 units)(24,075 units)

Step 1: Preparation of original budget : Original BudgetWorkingCost Component(23,000 units) Direct…

Answered: Acme Company's production budget for…

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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Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base is 3 DLH per unit. For March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget. The company actually operated at 90% capacity (11,250 units) in March and incurred actual total overhead costs of $103,425. Overhead Budget Production in units. Budgeted variable overhead Budgeted fixed overhead 1. Compute the standard overhead rate. Hint. Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000 units x 3.00 DLH per unit. 2. Compute the total overhead variance. 3. Compute the overhead controllable variance. 4. Compute the overhead volume variance. Required 1 Required 2 Complete this question by entering your answers in the tabs below. 80% Operating Levels 10,000 $ 42,000 $ 57,000 Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 30,000 DLH, computed as 10,000…
Tillman Manufacturing Co.'s static budget at 32,000 units of production includes $112,000 for direct labor and $37,000 for direct materials. Total fixed costs are $68,000. What are the total costs under a static budget?
Starts Inc. using production levels of 62,100, 65,200, and 68,300 units produced. The following additional information is necessary to complete the budget. Prepare a flexible production budget for the year ending December 31 for :Variable costs: Direct labor ($15.00 per unit) Direct materials ($7.00 per unit) Variable manufacturing costs ($5.00 per unit) Fixed costs: Supervisor’s salaries $28,000 Rent 8,000 Depreciation on equipment 52,000
Pinnacle Corp. budgeted $226,430 of overhead cost for the current year. Actual overhead costs for the year were $213,870. Pinnacle's plantwide allocation base, machine hours, was budgeted at 51,960 hours. Actual machine hours were 53,550. A total of 102,150 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: Oa. $4.12 per machine hour Ob. $4.36 per machine hour Oc. $2.22 per machine hour Od. $2.09 per machine hour
Flagstaff Company has budgeted July production of 6,900 units. Variable factory overhead is $13 per unit. Budgeted fixed factory overhead is $14,000, which includes $2.000 of factory equipment depreciation. Compute the total budgeted overhead for July Multiple Choice $20.970. $14.000. $18.900. $22.970
NuArt Company's budgeted production for November is 5,500 units. Budgeted component unit costs include: direct materials, $24; direct labor, $30; variable overhead, $18. Budgeted fixed overhead is $100,000. NuArt's actual production for November was 6,000 units. Actual component unit costs include: direct materials, $24.50; direct labor, $29; variable overhead, $18.40. Actual fixed overhead was $94,000. NuArt's flexible budget amount for direct labor in November would be: Multiple Choice A)$100,000 B)$156,000 C)$174,000 D)$180,000.
The following describes production activities of Mercer Manufacturing for the year. Actual direct materials used 18,000 lbs. at $4.15 per lb. Actual direct labor used 5,555 hours for a total of $106,656 Actual units produced 30,060 Budgeted standards for each unit produced are 0.50 pound of direct material at $4.10 per pound and 10 minutes of direct labor at $20.20 per hour.AH = Actual HoursSH = Standard HoursAR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price (1) Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.)(2) Compute the direct labor rate and efficiency variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no…
The production budget for Manner Company shows units to produce as follows: July, 650; August, 710; and September, 570. Each unit produced requires one hour of direct labor. The direct labor rate is budgeted at $17 per hour in July and August, but is budgeted to be $17.75 per hour in September. Prepare a direct labor budget for the months July, August, and September. Units to produce Direct labor hours needed Cost of direct labor MANNER COMPANY Direct Labor Budget July 650 August 710 September 570 units hs
Cholla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $10,800 and budgeted production of 36,000 units. Actual results for the month of October reveal that Cholla produced 31,000 units and spent $10,500 on fixed manufacturing overhead costs.
Vishu
The following data pertains to the month of October for Elm. Co. when production was budgeted to be 5,000 units of P90. P90 has standard costs per unit of: 3 lbs of Direct Materials at a cost of $7.00 per lb; .20 hours of Direct Labor at $18.00 per hour, and variable overhead assigned on the basis of 0.05 machine hours at a rate of $50 per machine hour. In October the productio of P90 was 4,600 units, using 15,100 lbs of material costing a total of $107,778. A.Determine the direct materials price variance. (negative numbers indicate a favorable variance)
Starts Inc. using production levels of 62,000, 67,200, and 69,300 units produced. The following additional information is necessary to complete the budget. Prepare a flexible production budget for the year ending December 31 for :Variable costs: Direct labor ($18.00 per unit) Direct materials ($5.00 per unit) Variable manufacturing costs ($8.00 per unit) Fixed costs: Supervisor’s salaries $27,000 Rent 18,000 Depreciation on equipment 82,000

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