Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 11, Problem 11.15E
Urban Corporation prepared the following variance report.
URBAN CORPORATION Variance Report—Purchasing Department For the Week Ended January 9, 2017
Instructions
Fill in the appropriate amounts or letters for the question marks in the report.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 pounds of oysters in
August. The company's flexible budget for August appears below:
Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (g)
7,600
Revenue ($4.05g)
$ 30,780
Expenses:
Packing supplies ($0.40g)
Oyster bed maintenance ($3,400)
Wages and salaries ($2,200 + $0.35q)
Shipping ($0.60g)
Utilities ($1,240)
Other ($410 + $0.01g)
Total expense
3,040
3,400
4,860
4,560
1,240
486
17,586
$ 13,194
Net operating income
The actual results for August appear below:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds
7,600
$ 26,500
Revenue
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
3,210
3,260
5,270
4,290
1,050
1,106
18,186
$ 8,314
Other
Total expense
Net operating income
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…
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has
asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing
overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be
an excellent first step in overhead planning and control.
After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:
Actual
Cost in
March
$ 21,670
$ 66,600
$ 6,600
Utilities
Maintenance
Supplies
Indirect labor $94,700+ $1.90 per machine-hour
Depreciation $68,000
Cost Formula
$0.21 per machine-hour
$2.00 per machine-hour
$16,300+
$38,800
$0.40 per machine-hour
During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work
17,000 machine-hours during March.
Required:
1. Calculate…
Chapter 11 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 11 - (a) Standard costs are the expected total cost of...Ch. 11 - (a) Explain the similarities and differences...Ch. 11 - Standard costs facilitate management planning....Ch. 11 - Standard costs facilitate management planning....Ch. 11 - Prob. 5QCh. 11 - What factors should be considered in setting (a)...Ch. 11 - The objective in setting the direct labor quantity...Ch. 11 - How is the predetermined overhead rate determined...Ch. 11 - What is the difference between a favorable cost...Ch. 11 - In each of the following formulas, supply the...
Ch. 11 - In the direct labor variance matrix, there are...Ch. 11 - Mikan Company's standard predetermined overhead...Ch. 11 - How often should variances be reported to...Ch. 11 - What circumstances may cause the purchasing...Ch. 11 - What are the four perspectives used in the...Ch. 11 - Prob. 16QCh. 11 - What are some examples of nonfinancial measures...Ch. 11 - (a) How are variances reported in income...Ch. 11 - (a) Explain the basic features of a standard cost...Ch. 11 - If the 9 per hour overhead rate in Question 12...Ch. 11 - What is the purpose of computing the overhead...Ch. 11 - Alma Ortiz does not understand why the overhead...Ch. 11 - John Hsu is attempting to outline the important...Ch. 11 - Lopez Company uses both standards and budgets. For...Ch. 11 - Tang Company accumulates the following data...Ch. 11 - Labor data for making one gallon of finished...Ch. 11 - Simba Company's standard materials cost per unit...Ch. 11 - Mordica Company's standard labor cost per unit of...Ch. 11 - In October, Pine Company reports 21,000 actual...Ch. 11 - Prob. 11.7BECh. 11 - Journalize the following transactions for Combs...Ch. 11 - Prob. 11.9BECh. 11 - Some overhead data for Pine Company are given in...Ch. 11 - Using the data in BE11-6 and BE11-10, compute the...Ch. 11 - Larkin Company accumulated the following standard...Ch. 11 - The standard cost of product 777 includes 2 units...Ch. 11 - The standard cost of product 5252 includes 1.9...Ch. 11 - Tropic Zone Corporation experienced the following...Ch. 11 - Parsons Company is planning to produce 2,000 units...Ch. 11 - Hank Itzek manufactures and sells homemade wine,...Ch. 11 - Stefani Company has gathered the following...Ch. 11 - Monte Services, Inc. is trying to establish the...Ch. 11 - The standard cost of Product B manufactured by...Ch. 11 - Lewis Company's standard labor cost of producing...Ch. 11 - Levine Inc., which produces a single product, has...Ch. 11 - The following direct materials and direct labor...Ch. 11 - You have been given the following information...Ch. 11 - During March 2017, Toby Tool Die Company worked...Ch. 11 - Manufacturing overhead data for the production of...Ch. 11 - Byrd Company produces one product, a putter called...Ch. 11 - Ceelo Company purchased (at a cost of 10,200) and...Ch. 11 - Picard Landscaping plants grass seed as the basic...Ch. 11 - Urban Corporation prepared the following variance...Ch. 11 - Fisk Company uses a standard cost accounting...Ch. 11 - The following is a list of terms related to...Ch. 11 - Indicate which of the four perspectives in the...Ch. 11 - Indicate which of the four perspectives in the...Ch. 11 - Vista Company installed a standard cost system on...Ch. 11 - Lopez Company uses a standard cost accounting...Ch. 11 - Data for Levine Inc. are given in E11-7....Ch. 11 - The information shown below was taken from the...Ch. 11 - Prob. 11.24ECh. 11 - Seacrest Company's overhead rate was based on...Ch. 11 - Rogen Corporation manufactures a single product....Ch. 11 - Ayala Corporation accumulates the following data...Ch. 11 - Rudd Clothiers is a small company that...Ch. 11 - Kansas Company uses a standard cost accounting...Ch. 11 - Hart Labs, Inc. provides mad cow disease testing...Ch. 11 - Jorgensen Corporation uses standard costs with its...Ch. 11 - Using the information in P11-1A, compute the...Ch. 11 - Using the information in P11-2A, compute the...Ch. 11 - Using the information in P11-3A, compute the...Ch. 11 - Using the information in P11-5A, compute the...Ch. 11 - CURRENT DESIGNS The executive learn at Current...Ch. 11 - Prob. 11.1BYPCh. 11 - Ana Carillo and Associates is a medium-sized...Ch. 11 - Glassmaster Company is organized as two divisions...Ch. 11 - Prob. 11.4BYPCh. 11 - Prob. 11.5BYPCh. 11 - Prob. 11.6BYPCh. 11 - At Symond Company production workers in the...Ch. 11 - Prob. 11.9BYP
Additional Business Textbook Solutions
Find more solutions based on key concepts
Trade Notes Payables. On February 1, Seville Sales, Inc. purchased Inventory costing 450,000 using a 6-month tr...
Intermediate Accounting (2nd Edition)
There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial...
Principles of Accounting Volume 2
Trade Notes Payable. On November 1, Barcelona Sales, Inc. purchased inventory costing 589,000 using a 5-month t...
Intermediate Accounting
The Hurley Hat Company manufactures baseball hats. Hurleys primary customers are sporting goods stores that sup...
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
BE5-6 Explain where each of these items would appear on a multiple-step income statement: gain on disposal of p...
Financial Accounting: Tools for Business Decision Making, 8th Edition
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Bonita Corporation prepared the following variance report. Fill in the missing amounts or letters in the report. (Round actual and standard price answers to 2 decimal places, e.g. 2.75.) Type of Materials Rogue11 Storm17 Beast29 Quantity Purchased lbs. 4.800 oz. 21,500 units $ Actual Price BONITA CORPORATION Variance Report-Purchasing Department For Week Ended January 9, 2022 $5.15 $0.35 $ Standard Price $4.95 $3.20 $4,820 Price Variance $1,200 Unfavorable $1,075 Favorable Explanation Price increase Rush order Bought larger quantityarrow_forwardQuilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget Actual pounds (q) Revenue ($4.15q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,100) Wages and salaries ($2,500 + $0.35q) Shipping ($0.60q) Utilities ($1,210) For the Month Ended August 31 Other ($400 + $0.019) Total expenses Net operating income Actual pounds Revenue The actual results for August were as follows: Expenses: Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income 7,300 $ 30,295 2,555 3,100 5,055 4,380 1,210 473 16,773 $ 13,522 7,300 $ 26,600 2,725 2,960 5,465 4,110 1,020 1,093 17,373 $ 9,227arrow_forwardJake's Roof Repair has provided the following data concerning its costs Cost per Repair Hour $15.00 $ 7.70 $0.50 $ 3.50 $ 0.60 Wages and salaries Parts and supplies Equipeent depreciation Truck operating expenses Rent Administrative expenses Fixed Cost per Month $ 21,000 $2,730 $ 5,709 $ 4,020 $3,050 For example, wages and salaries should be $21,000 plus $15.00 per repair-hour. The company expected to work 2.900 repair-hours in May, but actually worked 2.800 repair-hours. The company expects its sales to be $52.00 per repair-hour Required: Compute the company's activity variances for May (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)arrow_forward
- ces W Actual pounds (q) Revenue ($4.10g) For the Month Ended August 31 Quilcene Oysteria Flexible Budget Expenses: Packing supplies ($0.30q) Oyster bed maintenance ($3,000) Wages and salaries ($2,400 + $0.30q) Shipping ($0.60q) Utilities ($1,270) Other ($470 + $0.019) Total expense Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries. Shipping Utilities Other Total expense Net operating income 7,200 $ 27,100 2,330 2,860 4,970 4,050 1,080 1,162 16,452 $ 10,648arrow_forwardOverhead Variances and Their Disposal Warner Company has the following data for the past year: Actual overhead Applied overhead: Work-in-process inventory Finished goods inventory Cost of goods sold Total $402,000 $88,000 176,000 176,000 $440,000 Warner uses the overhead control account to accumulate both actual and applied overhead.arrow_forwardDickinsen Company gathered the following data for December: a.Compute the revenue price variance. b.Compute the revenue volume variance. c.Compute the total revenue variance.arrow_forward
- Anker Company had the data below for its most recent year, ended December 31: Required: Prepare a performance report that shows the variances on an item-by-item basis.arrow_forwardHayesville Company uses a standard cost system and reports the following information for 2024: (Click the icon to view the information.) Requirements Begin by journalizing the purchase of direct materials on account, including the related variance. (Prepare a single com Date Accounts and Explanation Print G Debit Done Record the journal entries for direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts (all materials purchased were used in production, and all goods produced were sold). Record the journal entries for the transfer to Finished Goods Inventory and Cost of Goods Sold (omit the journal entry for Sales Revenue). Record the journal entry to adjust the Manufacturing Overhead account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Credit Hayesville Company reported the following variances:…arrow_forwardThe journal entry to record the direct materials quantity variance may be recorded A. Only when direct materials are purchased B. When inventory is taken at the end of the year. C. Only when direct materials are issued to production: D. All of the choices are correctarrow_forward
- Data table Standards: 3 yards of cloth per unit at $1.10 per yard 2 direct labor hours per unit at $19.50 per hour Overhead allocated at $4.00 per direct labor hour Actual: 2,800 yards of cloth were purchased at $1.15 per yard Employees worked 1,200 hours and were paid $19.00 per hour Actual variable overhead was $4,000 Actual fixed overhead was $2,700 Print Done - X Data table Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance Print Done - X $140 U 220 F 600 F 15,600 F 1,100 U 1,100 F 800 U 2,100 F Requirements Record the journal entries for direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts (all materials purchased were used in production, and all…arrow_forwardAmada Company's standard cost system reports this information from its December operations. Standard direct materials cost Direct materials quantity variance Direct materials price variance Actual direct labor cost Direct labor efficiency variance Direct labor rate variance Actual overhead cost Volume variance Controllable variance View transaction list Journal entry worksheet 1 Required: 1. Prepare December 31 journal entries to record the company's costs and variances for the month for (a) direct materials, (b) direct labor, and (c) overhead. Ignore the journal entry to close the variances. 2 3 Record direct materials costs and variances. Date December 31 Note: Enter debits before credits. $ 100,000 General Journal 3,000 U 500 F 90,000 7,000 F 1,200 U 375,000 12,000 U 9,000 U Debit Credit >arrow_forwardComplete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) FAB Corporation Activity Variances For the Month Ended March 31 $ 20,440 Utilities Maintenance Supplies Indirect labor Depreciation Totalarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
What is Risk Management? | Risk Management process; Author: Educationleaves;https://www.youtube.com/watch?v=IP-E75FGFkU;License: Standard youtube license