Income statement under variable costing for the period ending December 31, 018
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Q: The following data relate to direct labor costs for the current period: Standard costs 7,300 hours…
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Income statement under variable costing for the period ending December 31, 018
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- 1Lights Incorporated calculates cost for an equivalent unit of production using the weighted-average method. Data for July: Work-in-process inventory, July 1 (39,500 units): Direct materials (93% completed) Conversion (57% completed) Balance in work in process inventory, July 1 Units started during July Units completed and transferred Work-in-process inventory, July 31: Direct materials (93% completed) Conversion (57% completed) Cost incurred during July: Direct materials Conversion costs $ 122,750 77,200 $ 199,950 93,500 108,300 24,700 $ 183,500 291,500 Total equivalent units for materials under the weighted-average method are calculated to be:Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent Actual cars washed. Revenue Expenses: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Electricity Maintenance Wages and salaries. Depreciation Rent Fixed Cost per Month $ 1,200 $ 4,800 $ 8,400 $ 1,900 $ 1,600 Administrative expenses Total expense Net operating income Cost per Car Washed $ 0.70 8,200 $ 55,560 $ 0.08 $ 0.10 $ 0.20 6,170 1,818 1,050 6,780 8,400 2,100 1,662 27,980 $ 27,580 $ 0.02 Required: Calculate the company's revenue and…
- A company uses a standard costing system and applies overhead to production based on direct labor-hours. It provided the following information for its most recent year. $300,000 $276,000 60,000 56,000 56,500 Budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator hours) Actual direct labor-hours Standard direct labor-hours al1lowed for actual output What is the fixed overhead volume variance? Multiple Cholce $20,000 F $17,500 U $20,000 U MacBook Air 吕口 豐Please don't give image formatRequired information Exercise 7-3 Reconciliation of Absorption and Variable Costing Net Operating Incomes (LO7-3] [The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) Ending (units) Variable costing net operating income 200 160 200 210 160 230 $290,000 $269,000 $250,000 The company's fixed manufacturing overhead per unit was constant at $500 for all three years.
- Direct Labor Actual Data: Units produced Direct Labor Standard Cost Data per 1 Unit Quantity Price 2 hrs $41/hr SHOW ALL COMPUTATIONS. 20 units 39 hrs; total cost $1560 Compute rate variance, efficiency variance, direct labor varianceQuestion 2 a)At the end of the year, Era Sdn. Bhd. provided the following actual information: Overhead RM 412,600 Direct Labor Cost 532,000 Ilham uses normal costing and applies overhead at the rate of 75% of direct labor cost. At the end of the year, Cost of Goods Sold (before adjusting for any overhead variance) was RM 1,670,000. Required: i) Calculate the overhead variance for the year. ii) Dispose of the overhead variance by adjusting the Cost of Goods Sold.Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following information for its most recent year: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours Actual direct labor-hours Standard direct labor-hours allowed for the actual output What is the fixed overhead volume variance? Multiple Choice O $20,000 U $20,000 F $9,000 U $9,000 F $ 300,000 $ 276,000 60,000 56,000 58, 200
- Arctica manufactures snowmobiles and ATVS. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs that the particular department manager can controt: raw materials, wages, supplies used, and equipment depreciation. Budget ATV $28,300 $ 48,600 21,300 6,000 980 13,300 620 7, 100 $77,600 $132,120 Actual Combined Snowmobile $20,300 11, 200 5,100. 4,180 6,800 440 6,500 $54,520 Snowmobile $20,220 11,540 5, 200 3,970 6,800 410 6,100 $54,240 Combined Raw materials Employee wages Dept. manager salary Supplies used Depreciation-Equip. Utilities Rent ATV $29,700 $ 49,920 22,120 5, 200 1,020 13, 300 580 7, 100 $79,020 $133,260 33, 660 10,400 32,500 11,100 5, 160 20, 100 1,060 13,600 4,990 20, 100 990 13,200 Totals Prepare a responsibility accounting report for the ATV department. (Under budget amounts should be indicated by a minus sign.)The following data relate to direct labor costs for the current period: 7,300 hours at $11.40 6,100 hours at $10.80 Standard costs Actual costs The direct labor time variance is Oa. $13,680 unfavorable Ob. $12,960 favorable Oc. $12,960 unfavorable Od. $13,680 favorableHarper Company's performance report indicated the following information for the past month:Actual total overhead P1,600,000Budgeted fixed overhead 1,500,000Applied fixed overhead at P3 per labor hour 1,200,000Applied variable overhead at P0.50 per labor hour 200,000Actual labor hours 430,000Remember that we assume cost is applied using the standard costing. Harper's total overhead efficiency variance (OSV) for the month was:
