Exercise 16-38 (Algo) Flexible Budget (LO 16-2) Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 128,000 cases at a budgeted price of $68 per case this year. The standard direct cost sheet for one case of pet food follows: Direct materials Direct labor Variable costs: Variable overhead is applied based on direct labor-hours. The variable overhead rate is $32 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $16 per unit. All nonmanufacturing costs are fixed and are budgeted at $2.6 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $352,000 favorable. Required: Note: Enter your answers in thousands of dollars. Total variable costs Fixed costs: (4 pounds @ $2) (0.25 hours @ $32) Total fixed costs GOLDEN FOOD PRODUCTS Flexible Budget (thousands of dollars) $ 8 8 -

Exercise 16-38 (Algo) Flexible Budget (LO 16-2) Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 128,000 cases at a budgeted price of $68 per case this year. The standard direct cost sheet for one case of pet food follows: Direct materials Direct labor Variable costs: Variable overhead is applied based on direct labor-hours. The variable overhead rate is $32 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $16 per unit. All nonmanufacturing costs are fixed and are budgeted at $2.6 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $352,000 favorable. Required: Note: Enter your answers in thousands of dollars. Total variable costs Fixed costs: (4 pounds @ $2) (0.25 hours @ $32) Total fixed costs GOLDEN FOOD PRODUCTS Flexible Budget (thousands of dollars) $ 8 8 -

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...

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Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 127,500 cases at a budgeted price of $60 per case this year. The standard direct cost sheet for one case of pet food follows: Direct materials Direct labor Sales revenue Less variable costs. Direct materials. Direct labor Variable overhead i Variable overhead is applied based on direct labor-hours. The variable overhead rate is $16 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $10 per unit. All nonmanufacturing costs are fixed and are budgeted at $2.2 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $336,000 favorable. The following is the actual income statement (in thousands of dollars) for the year for Golden Food Products: Total variable costs (3 pounds @ $2) (0.25 hours @ $32) Contribution margin Less…
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Required information [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 4 pounds at $10 per pound Direct labor: 2 hours at $16 per hour $ 40 32 Variable overhead: 2 hours at $6 per hour 12 Total standard cost per unit $ 84 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs: a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct laborers worked 62,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $390,600. 10. What is the labor efficiency variance for March? (Indicate the effect of each variance by selecting "F" for…