EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Chapter 25, Problem 2PSA
(LO 2) Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary
Prepare flexible budget, budget report, and graph for manufacturing overhead.
The
Variable—per direct labor hour: indirect labor $0.44, indirect materials $0.48, factory utilities $0.32, and factory repairs $0.25.
Fixed: same as budgeted.
Instructions
a. Prepare a monthly manufacturing overhead flexible budget for the year ending December 31, 2020. assuming production levels range from 35,000 to 50,000 direct labor hours. Use increments of 5,000 direct labor hours.
b. Prepare a budget report for June comparing actual results with budget data based on the flexible budget.
c. Were costs effectively controlled? Explain.
d. State the formula for computing the total budgeted costs for the Ironing Department.
e. Prepare the flexible budget graph, showing total budgeted costs at 35,000 and 45,000 direct labor hours. Use increments of 5,000 direct labor hours on the horizontal axis and increments of $10,000 on the vertical axis.
a. Total costs: 35,000 DLH, $58,000; 50,000 DLH, $79,000
b. Budget $66,400
Actual $70,090
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Concord Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2020. The following data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direct labor hours.
Variable costs
Rate per DirectLabor Hour
Annual Fixed Costs
Indirect labor
$0.40
Supervision
$43,680
Indirect materials
0.51
Depreciation
17,160
Factory utilities
0.34
Insurance
12,480
Factory repairs
0.24
Rent
23,040
The master overhead budget was prepared on the expectation that 484,200 direct labor hours will be worked during the year. In June, 38,600 direct labor hours were worked. At that level of activity, actual costs were as shown below.Variable—per direct labor hour: indirect labor $0.43, indirect materials $0.50, factory utilities $0.38, and factory repairs $0.29.Fixed: same as budgeted.…
Concord Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2020. The following data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direct labor hours.
Variable costs
Rate per DirectLabor Hour
Annual Fixed Costs
Indirect labor
$0.40
Supervision
$43,680
Indirect materials
0.51
Depreciation
17,160
Factory utilities
0.34
Insurance
12,480
Factory repairs
0.24
Rent
23,040
The master overhead budget was prepared on the expectation that 484,200 direct labor hours will be worked during the year. In June, 38,600 direct labor hours were worked. At that level of activity, actual costs were as shown below.Variable—per direct labor hour: indirect labor $0.43, indirect materials $0.50, factory utilities $0.38, and factory repairs $0.29.Fixed: same as budgeted.
1. Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2020. The following data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index of direct labor hours.
Variable costs
Rate per direct labor hour
Annual fixed costs
Indirect labor
$ 0.42
Supervision
$ 42600
Indirect material
$ 0.50
depreciation
$ 17280
Factory utilities
$ 0.33
insurance
$ 14640
Factory repairs
$ 0.23
rent
$ 30600
The master overhead budget was prepared on the expectation that 481,600 direct labor hours will be worked during the year. In June, 38,400 direct labor hours were worked. At that level of activity, actual costs were as shown below.
Variable—per direct labor hour: indirect labor $0.46, indirect materials $0.48, factory utilities $0.37, and…
Chapter 25 Solutions
EBK ACCOUNTING PRINCIPLES
Ch. 25 - Prob. 1QCh. 25 - Prob. 2QCh. 25 - Prob. 3QCh. 25 - 4. Ken Bay questions the usefulness of a master...Ch. 25 - Prob. 5QCh. 25 - Prob. 6QCh. 25 - Prob. 7QCh. 25 - Prob. 8QCh. 25 - Prob. 9QCh. 25 - Prob. 10Q
Ch. 25 - Prob. 11QCh. 25 - Prob. 12QCh. 25 - Prob. 13QCh. 25 - Prob. 14QCh. 25 - Prob. 15QCh. 25 - Prob. 16QCh. 25 - Prob. 17QCh. 25 - Prob. 18QCh. 25 - Prob. 19QCh. 25 - Prob. 20QCh. 25 - Prob. 21QCh. 25 - Prob. 22QCh. 25 - Prob. 23QCh. 25 - Prob. 24QCh. 25 - Prob. 25QCh. 25 - Prob. 26QCh. 25 - Prob. 1BECh. 25 - Prob. 2BECh. 25 - Prob. 3BECh. 25 - Prob. 4BECh. 25 - Prob. 5BECh. 25 - Prob. 6BECh. 25 - (LO 3) Torres Company accumulates the following...Ch. 25 - Prob. 8BECh. 25 - Prob. 9BECh. 25 - Prob. 10BECh. 25 - Prob. 11BECh. 25 - Prob. 12BECh. 25 - Prob. 1DIECh. 25 - Prob. 2DIECh. 25 - Prob. 3DIECh. 25 - Prob. 4DIECh. 25 - Prob. 1ECh. 25 - E24-2 Crede Company budgeted selling expenses of...Ch. 25 - Prob. 3ECh. 25 - Prob. 4ECh. 25 - Prob. 5ECh. 25 - Prob. 6ECh. 25 - Prob. 7ECh. 25 - Prob. 8ECh. 25 - Prob. 9ECh. 25 - Prob. 10ECh. 25 - Prob. 11ECh. 25 - Prob. 12ECh. 25 - Prob. 13ECh. 25 - Prob. 14ECh. 25 - Prob. 15ECh. 25 - Prob. 16ECh. 25 - Prob. 17ECh. 25 - Prob. 18ECh. 25 - Prob. 19ECh. 25 - Prob. 20ECh. 25 - Prob. 21ECh. 25 - Prob. 1PSACh. 25 - (LO 2) Zelmer Company manufactures tablecloths....Ch. 25 - Prob. 3PSACh. 25 - Prob. 4PSACh. 25 - Prob. 5PSACh. 25 - Prob. 6PSACh. 25 - Prob. 7PSACh. 25 - Service Green Pastures is a 400-acre farm on the...Ch. 25 - Prob. 2EYCTCh. 25 - Prob. 3EYCTCh. 25 - Prob. 4EYCTCh. 25 - Prob. 5EYCTCh. 25 - Prob. 7EYCT
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