KJuda Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Judaallocates overhead based on yards of direct materials. The company's performance report includes the followingselected data:Data tableSalesStatic Budget(1,025 recliners)Actual Results(1,005 recliners)(1,025 recliners x $515 each)(1.005 recliners x $480 each)S527,875S482,400Variable Manufacturing Costs:Direct Materials(6.150 yds. @ $8.907 yd.)(6,300 yds. @ $8.70/yd.)54.73554,810Direct Labor(10,250 DLHr @ $11.30 / DLHr)(9,850 DLHr @ $11.40/DLHr)115,825112:290Variable Overhead (6,150 yds @ $5.10/yd.)31,365(6,300 yds. @ $6.50 / yd.)40,950Fixed Manufacturing Costs:Fixed OverheadTotal Cost of Goods SoldGross ProfitX62,73064,7300264,655272,780$263,220 $209.620Us allocates overhead based on yards of direct materials. The company's performance report includes the followingRequirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amountsper unit to the nearest cent.)Juda ReclinersFlexible BudgetBudgetAmountsper UnitActual Units (Recliners)Sales RevenueVariable Manufacturing Costs:Direct MaterialsDirect LaborVariable OverheadFixed Manufacturing Costs:Fixed OverheadTotal Cost of Goods SoldGross Profit

FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…

allocates overhead based on yards of direct materials. The company's performance report includes the following Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) Juda Recliners Flexible Budget Budget Amounts per Unit Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs: Direct Materials Direct Labor Variable Overhead Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit

allocates overhead based on yards of direct materials. The company's performance report includes the following Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) Juda Recliners Flexible Budget Budget Amounts per Unit Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs: Direct Materials Direct Labor Variable Overhead Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Juda Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Juda allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: Data table Sales Static Budget (1,025 recliners) Actual Results (1,005 recliners) (1,025 recliners x $515 each) (1,005 recliners x $480 each) S 527,875 S 482,400 Variable Manufacturing Costs Direct Materials (6.150 yds @ $8.90/yd.) (6,300 yds @ $8.70/yd.) 54,735 54 810 Direct Labor (10,250 DLHr @ $11.30/DLHr) (9,850 DLHr @ $11.40/DLHr) 115,825 112,290 Variable Overhead (6,150 yds @ $5.10/yd.) 31,365 (6,300 yds. @ $6.50/yd) 40,950 Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit 62,730 64,730 264,655 272,780 $ 263,220 $ 209,620 - X
Aero Travel Trailer Manufacturing is working on budgeting utility cost. The controller has decided that utilities are a function of the hours worked during the month. The following information is available and representative of the company’s utility costs: - Hours worked Utility cost incurred Low point 1,300 $ 903 High point 1,680 1,074 If 1,425 hours are worked in a month, total utility cost (rounded to the nearest dollar) using the high-low method should be Group of answer choices $947. $959. $954. $976.
Smith Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Smith allocates overhead based on yards of dired (Click the icon to view the selected data.) Read the requirements. Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) Smith Recliners Flexible Budget Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs: Direct Materials Direct Labor Variable Overhead Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit Budget Amounts per Unit Direct materials cost variance W Direct labor cost variance = Direct materials efficiency variance Direct labor efficiency variance . Formula = Variance Formula Data table Sales Variance Variable Manufacturing Costs: Direct Materials (6,150 yds @ $8.60/yd.) (6,300 yds @ $8.40/yd.) (10,250 DLHr@ $11.20/DLHr) (9,850 DLHr@ $11.30/DLHr) Variable Overhead (6,150 yds. @ $5.10/yd.) (6,300…
Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs.Rammazzotti, Inc., had the following budgeted data: Unit sales for the year 26,000 Unit production for the year 26,000 Budgeted fixed overhead for the year: Supervision $ 800 Depreciation 2,000 Rent 100 Budgeted variable costs per unit: Direct materials $0.15 Direct labor 0.20 Supplies 0.02 Indirect labor 0.05 Power 0.02 The following actually occurred: Actual unit sales for the year 24,000 Actual unit production for the year 28,000 Actual fixed overhead for the year: Supervision $ 850 Depreciation 2,000 Rent 100 Actual variable costs: Direct materials $3,500 Direct labor 4,900 Supplies 530 Indirect labor 1,250 Power 470 The total budgeted costs for the year were a.$14,340. b.$11,440. c.$13,510. d.$13,460.
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for esch deportment. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor Indirect labor Utilitics Supplies Equipment depreciation Factory rent Ргopсrty tакеs Factory adninistration $15.88g $8, 280 + $1.68g $6,400 + $e.seg $1,180 + $e.48g $23,0ee + $3.78g $8,400 $2,100 $11,700 + $1.9eg The Production Department planned to work 8,000 lebor-hours in March; however, it octually worked 8,400 lobor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $134,738 $ 19,860 $ 14,578 $ 4,988 $ 54, 88e $ 8,700 $ 2,100 $ 26,470 Direct labor Indirect labor lities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: 1. Prepare the Production…
Solomon Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Solomon expects to incur $640,000 of overhead cost during the next fiscal year. Other budget Information follows. Direct labor hours Machine hours Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Complete this question by entering your answers in the tabs below. Required A Required B Vogue Beauty Glamour Total 4,600 6,600 4,800 16,000 1,200 2,300 2,900 6,400 Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Product Allocation Rate x Weight of Base Allocated Cost X X Vogue Beauty Glamour Total X = || Required A Required B >
Solomon Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Solomon expects to incur $640,000 of overhead cost during the next fiscal year. Other budget Information follows. Direct labor hours Machine hours Required a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. b. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Complete this question by entering your answers in the tabs below. Required A Required B Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Product Allocation Rate x Weight of Base X Vogue Beauty Vogue Beauty Glamour Total 6,600 4,800 16,000 4,600 1,200 2,300 2,900 6,400 Glamour Total X X = Allocated Cost $ || II || $
Ut Ultrasonic manufactures three ultrasound imaging systems: Avex, AvexII, and Mel. Overhead is allocated to each system based on standard direct material dollars in each system. The firm uses a flexible overhead budget to calculate the overhead rate for the coming year, where budgeted volume is based on expected (projected) direct material dollars. The following table summarizes operations for the year: Selling price Projected production (units) Standard direct labor per unit Standard direct materials per unit Actual units produced Total direct materials actually used Avex $7,800 1,200 $150 $2,600 1,400 $3,967,600 Avexl $10,700 650 $200 $3,300 530 $1,679,040 Mel $15,750 350 $420 $4,800 410 $2,027,040 Fixed manufacturing overhead was budgeted at $7.5 million, and variable overhead was budgeted at $0.30 per direct material dollar. In other words, each dollar spent on direct materials is expected to generate $0.30 of variable manufacturing overhead. Actual overhead incurred during the…
Geovanni Inc. uses standard costs to prepare its flexible budget. Standard and actual costs data for manufacturing overhead for producing 5,000 units of product are as follows: Standard and actual costs data for manufacturing overhead Costs Rate Allocation base per unit Variable overhead $8 per direct labor hour 2 hours Fixed overhead (based on 12,000 hours at 100% capacity) $3 per direct labor hour 2 hours Actual total overhead costs are as follows: Actual Total Overhead Costs Costs Amounts Total variable overhead costs $58,000 Total fixed overhead costs $20,000 Compute the fixed overhead cost variance. Group of answer choices -$7,000 favorable $10,000 unfavorable -$10,000 favorable $18,000 unfavorable
WXY Corporation manufactures lambs. Here below static budget and actual results are presented; Actual Results as of Dec,31,2011 Static Budget as of Jan,01,2011 Units sold 184.000 units 180.000 units Revenues $1.840.000 $1.800.000 Variable costs S901.600 $864.000 Fixed costs $190.000 $200.000 Required: a. Please prepare five column income statement performance report. b. Discuss the advantages of using flexible budgets in detail. Describe the purpose of variance analysis and its relation to responsibility management by using examples.
All−Star, Inc. uses a standard cost system and provides the following information. Static budget variable overhead $1,200 Static budget fixed overhead $1,600 Static budget direct labor hours 800 hours Static budget number of units 400 units Standard direct labor hours 2 hours per unit All−Star allocates manufacturing overhead to production based on standard direct labor hours. All−Star reported the following actual results for 2018: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $3,400; actual direct labor hours, 1,500. 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable. Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the…
EcoSacks manufactures cloth shopping bags. The controller is preparing a budget for the coming year and asks for your assistance. The following costs and other data apply to bag production. Direct materials per bag 1.0 yard cotton at $4 per yard 0.2 yards canvas finish at $12 per yard Direct labor per bag 0.5 hour at $18 per hour Overhead per bag Indirect labor $ 0.60 Indirect materials 0.20 Power 0.40 Equipment costs 1.30 Building occupancy 0.90 Total overhead per unit $ 3.40 You learn that equipment costs and building occupancy are fixed and are based on a normal production of 600,000 units per year. Other overhead costs are variable. Plant capacity is sufficient to produce 750,000 units per year. Labor costs per hour are not expected to change during the year. However, the cotton supplier has informed EcoSacks that it will impose a 20 percent price increase at the start of the coming budget period. No…