$ 45.00 Direct material: 5 pounds at $9.00 per pound Direct labor: 3 hours at $14...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
$ 45.00 Direct material: 5 pounds at $9.00 per pound Direct labor: 3 hours at $14 per hour Variable overhead: 3 hours at $9 per hour Total standard variable cost per unit 42.00 27.00 $114.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 300,000 $ 300,000 $22.00 $13.00 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 units and incurred the following costs: a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct-laborers worked 65,000 hours at a rate of $15.00 per hour. c. Total variable manufacturing overhead for the month was $612,300, d. Total advertising, sales salaries and commissions, and shipping expenses were $303,000, $505,000, and $215,000, respectively. 13. What is the spending variance related to advertising? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance.). Input the amount as a positive value.) Spending variance related to adversaing $ 45.00 Direct material: 5 pounds at $9.00 per pound Direct labor: 3 hours at $14 per hour Variable overhead: 3 hours at $9 per hour Total standard variable cost per unit 42.00 27.00 $114.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising Sales salaries and commissions Shipping expenses $ 300,000 $ 300,000 $22.00 $13.00 The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 units and incurred the following costs: a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct-laborers worked 65,000 hours at a rate of $15.00 per hour. c. Total variable manufacturing overhead for the month was $612,300, d. Total advertising, sales salaries and commissions, and shipping expenses were $303,000, $505,000, and $215,000, respectively. 13. What is the spending variance related to advertising? (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance.). Input the amount as a positive value.) Spending variance related to adversaing
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Company B had estimated 100000 direct labor hours 400000 manufacturing overhead and 25000 machine hours The actual were 100700 direct labor hours 26600 machine hours and 475000 manufacturing overhead...
-
Please fill in the missing spots in this income statement. Accounting 102 Chapter 15 Sales Direct Materials Direct Labor Overhead Total Manufacturing Costs Work in Process - January 1 Work in Process...
-
Fixed costs per annum P60 000 Unit selling price 20 Unit variable cost 10 Relevant range 4 00012 000 units REQUIRED: Calculate the following: a. Break-Even Point in b. Units to be sold to obtain the...
-
Suppose that the owner of the restaurant in Problem 2.91 also wants to study the demand for dessert during the same time period. She decides that in addition to studying whether a dessert was...
-
Davis Company began operations on January 1, 2013, adopting the conventional retail inventory system. None of its merchandise was marked down in 2013 and because there was no beginning inventory, its...
-
In 2014, Carver Electronics Co. began selling a new computer that carried a two-year warranty against defects. Based on the manufacturer's recommendations, Carver projects estimated warranty costs...
-
Milford Pump Company's income statement has been prepared for November of the current year. Instructions: 1. Prepare Milford Pump Companys November income statement reporting contribution margin. 2....
-
Mazeppa Corporation sells relays at a selling price of $28 per unit. The companys cost per unit, based on full capacity of 160,000 units, is as follows: Direct materials . . . . . . . . . . . . . . ....
-
1. The Rise of Blockchain in Business: Can blockchain technology revolutionize business operations by ensuring transparency, security, and efficiency in areas like supply chain management, financial...
-
Chase Manhattan Bank The workload in many areas of bank operations has the characteristics of a nonuniform distribution with respect to time of day. For example, at Chase Manhattan Bank, the number...
-
Determine the moment of the force about point O. 30 600 th 201 50 osa F4-1 Determine the moment of the force about point O. 100 N 5m F4-2 2 m Determine the moment of the force about point O 5 0,4 m...
-
Morga Corporation has a debt-equity ratio of 1.80, sales of $897,000, net income of $49,000, and total debt of $227,000. What is the return on equity? (Show your answer as a percentage. E.g., if you...
-
On January 1, Eskimo Joe's Corporation issued$400,000,8%,28-year bonds to yield3%. The bonds pay interest annually on December 31 . What is the cost of borrowing?
-
1. You invested $1000 in a savings account in 6th grade. The account pays 5% annual interest. How much money will be in the account after 6 years? 2. The population of a city was 1,860,000 in 2002....
-
Company 12 sells a single product. The selling price of the product is 72, variable costs per unit are 55. Fixed costs for the year are expected to be 400,000. The directors of the company wish to...
-
During Year 1, Camellia Company experienced nancial diculties and was likely to default on a $1,500,000, 15%, three-year note dated January 1 of Year 1, payable to Central National Bank. On January...
-
How can a company embrace theA Priori Enterprise Systems Success Measurement Model?
-
PC Contractors, Inc., was an excavating business in Kansas City, Missouri. Union Bank made loans to PC, subject to a perfected security interest in its equipment and other assets, including...
-
The Bayview Resort has three operating departmentsthe Convention Center, Food Services, and Guest Lodgingthat are supported by three service departments General Administration, Cost Accounting, and...
-
Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. The production superintendent was pleased when...
-
Refer to the data in Exercise 16-2 for Weller Corporation. Required: Compute the following financial data for this year: 1. Earnings per share. 2. Price-earnings ratio. 3. Dividend payout ratio. 4....
-
Describe at least three ways that corporate managers can build shareholder value (increase their firms share price). Rank-order the various managerial actions you identified according to their...
-
What is a debenture?
-
What is a bearer bond?
Study smarter with the SolutionInn App