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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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At the beginning of the period, the Cutting Department budgeted direct labor of $73,270 and supervisor salaries of $37,390 for 4,310 hours of production. The department actually completed 4,700 hours of production.
Determine the budget for the department assuming that it uses flexible budgeting.
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- Please help mearrow_forwardHanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $310,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $170,000 are allocated based on the number of employees. The costs of operating departments A and B are $192,000 and $288,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Budgeted costs Budgeted maintenance-hours Number of employees Support Departments OA $200,588 OB. $124,235 OC. $135415 OD. $74,260 Maintenance Personnel Department Department $310,000 $170,000 NA 900 Production Departments A B $192,000 $288,000 1,210 660 75 NA 660 Using the step-down method, what amount of Maintenance Department cost will be allocated to Department A if the service department with the highest percentage of interdepartmental support service is allocated first? (Do not round any intermediary calculations.) 290arrow_forwardThe master budget at Cherrylawn Corporation at the beginning of the year was based on sales of 279,000 units with revenues of $3,348,000. Total variable costs were budgeted at $1,953,000 and fixed costs at $966,000. During the period, actual production and actual sales were 255,800 units. The actual revenues were $3,446,500. Actual variable costs were $6.10 per unit. Actual fixed costs were $996,000. Required: Prepare a profit variance analysis. Note: 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. Sales revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profits $ $ Actual 0 0 Manufacturing Variances Cherrylawn Corporation Profit Variance Analysis Sales Price Variance Flexible Budget $ $ 0 Sales Activity Variance Master Budget $ $ 0 0arrow_forward
- At the beginning of the period, the Cutting Department budgeted direct labor of $139,000, direct materials of $169,000 and fixed factory overhead of $13,400 for 7,400 hours of production. The department actually completed 11,300 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting? Round hourly rates to two decimal places. Round interim calculations to two decimal places. Round your final answer to the nearest dollar. a.$490,786 b.$483,706 c.$321,400 d.$328,462arrow_forwardAt the beginning of the period, the Cutting Department budgeted direct labor of $128,000, direct materials of $163,000 and fixed factory overhead of $14,000 for 8,000 hours of production. The department actually completed 10,200 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations. Oa. $385,025 Ob. $308,850 Oc. $388,875 Od. $305,000 ......arrow_forwardThe following information is from the manufacturing budget and budgeted financial statements of Altman Corporation: Direct materials inventory, 1/1 $ 90,000 Direct materials inventory, 12/31 $ 106,000 Direct materials budgeted for use during year Accounts payable to suppliers, 1/1. $ 348,000- $ 58,000 Accounts payable to suppliers, 12/311 $ 68,000 For the year, budgeted purchases of direct materials amounted to: Multiple Choicearrow_forward
- Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Actual results for May: Revenue Direct labor Direct materials Fixed element per month 41,500 22,700 $ 64,200 $ 197,810 $ 28,565 $ 80,265 $ 47,905 $ 22,680 $0 $0 0 Manufacturing overhead Selling and administrative expenses The spending variance for direct materials in May would be closest to: Variable element per unit $ 39.60 $ 5.50 15.70 1.30 0.20 $ 22.70arrow_forward1.-At the beginning of the period, the Fabricating Department budgeted direct labor of $39,600 and equipment depreciation of $61,000 for 1,800 hours of production. The department actually completed 2,400 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.arrow_forwardAt the beginning of the period, the Fabricating Department budgeted direct labor of $123,500 and equipment depreciation of $34,000 for 6,500 hours of production. The department actually completed 8,600 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.$fill in the blank 1arrow_forward
- The production budget for Manner Company shows units to produce as follows: July, 630; August, 690; and September, 550. Each un produced requires three hours of direct labor. The direct labor rate is budgeted at $16 per hour in July and August, but is budgeted to be $16.75 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 August 630 690 September 550 unitsarrow_forwardConsider Derek's budget information: materials to be used totals $63,300; direct labor totals $202,000; factory overhead totals $393,900; work in process inventory January 1, $187,200; and work in progress inventory on December 31, $193,400. What is the budgeted cost of goods manufactured for the year?arrow_forwardAt the beginning of the period, the Cutting Department budgeted direct labor of $57,120 and supervisor salaries of $45,420 for 3,360 hours of production. The department actually completed 3,700 hours of production. Determine the budget for the department assuming that it uses flexible budgeting.$arrow_forward
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