Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1- Diamond Company produces a chair that requires 5 yds. of material per unit. The standard price of one yard of material is $7.50. During

1- Diamond Company produces a chair that requires 5 yds. of material per unit. The standard price of one yard of material is $7.50. During the month, 8,500 chairs were manufactured, using 40,000 yards at a cost of $7.60. Determine the (a) price variance, (b) quantity variance, and (c) cost variance

2- Some items are omitted from each of the following condensed divisional income statements of Willis Inc (8 points):

Division L

Division M

Division N

Sales

$ (1)

$320,000

$580,000

Cost of goods sold

480,000

120,000

$ (5)

Gross profit

$220,000

$ (3)

$180,000

Operating expenses

95,000

160,000

$ (6)

Income from operations

$ (2)

$ (4)

$ 75,000

(a)

Determine the amount of the missing items, identifying them by number.

(b)

Based on income from operations, which division is the most profitable?

3- Delicious Cake Factory normally sells their specialty cake for $22. An offer to buy 100 cakes for $18 per cake was made by an organization hosting a national event in the city. The variable cost per cake is $12. A special decoration per cake will add another $1 to the cost. Determine the differential income or loss per cake from selling the cakes

4- Nite Lite Factory produces two similar products - small lamps and desk lamps. The total plant budget is $800,000 with 640,000 estimated direct labor hours. It is further estimated that small lamp production will have 375,000 direct labor hours and desk lamp production will require 265,000 direct labor hours

(a)

Determine the single plant factory overhead rate based on direct labor hours.

(b)

How much is the factory overhead cost per unit if each small lamp uses 3 hours per unit?

(c)

How much is the factory overhead cost per unit if each desk lamp uses 2.5 hours per unit?

(d)

How much total factory overhead will be allocated to the small lamp production if 130,000 units are produced during the period?

(e)

How much total factory overhead will be allocated to the desk lamp production if 104,000 are produced during the period?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CPA Comprehensive Exam Review Auditing And Attestation

Authors: Nathan M. Bisk

43rd Edition

088128095X, 978-0881280951

More Books

Students also viewed these Accounting questions