1) The president of the company, Max Best, has come to you for help Use the following data to prepare a flexible budget for possible sales production levels of 10,000, 11,000, and 12,000 units Show the contribution margin at each activity level Sales price $24 per unit Variable costs Manufacturing $12 per unit Administrative $ 3 per unit Selling $ 1 per unit Fixed costs Manufacturing $60,000 Administrative $20,000 2) Able Company manufactures tables for schools The 2015 operating budget is based on sales of 44,000 units at $55 per table Operating income is anticipated to be $132,000 Budgeted variable costs are $35 per unit, while fixed costs total $660,000 Actual income for 2015 was a surprising $477,000 on actual sales of 46,000 units at $57 each Actual variable costs were $33 per unit and fixed costs totaled $627,000 Required Prepare a variance analysis report with both flexible budget and sales volume variances 3) The following data for the Campbell Company pertains to the production of 2,000 garden spades during March The spade consists of a wooden handle and a metal forged tool that comes in contact with the ground Direct Materials (all materials purchased were used) Standard cost $1 00 per handle and $3 00 per metal tool Total actual cost $9,000 Materials flexible budget efficiency variance was $500 unfavorable Direct Manufacturing Labor Standard cost is 5 garden spades per hour at $20 00 per hour Actual cost per hour was $21 00 Labor efficiency variance was $500 favorable Required a What is the standard direct material amount per garden spade b What is the standard cost allowed for all units produced c What is the total direct materials flexible budget variance d What is the direct material flexible budget price variance e What is the total actual cost of direct manufacturing labor f What is the labor price variance for direct manufacturing labor 4) Delk Company makes separate journal entries for all cost accounting related activities It uses a standard cost system for all manufacturing items For the month of June, the following activities have taken place Direct Manufacturing Materials Purchased $300,000 Direct Manufacturing Materials Used 250,000 Direct Materials Price Variance 10,000 unfavorable (at time of purchase) Direct Materials Efficiency Variance 15,000 favorable Direct Manufacturing Labor Price Variance 6,000 favorable Direct Manufacturing Labor Efficiency Variance 4,000 favorable Direct Manufacturing Labor Payable 170,000 Required Record the necessary journal entries to close the accounts for the month 5) Evans Inc manufactures pillows The 2015 operating budget is based on production of 25,000 pillows with 0 75 machine hour allowed per pillow Budgeted variable overhead per hour was $25 Actual production for 2015 was 27,000 pillows using 19,050 machine hours Actual variable costs were $23 per machine hour Required Calculate the variable overhead spending and efficiency variances 6) Farmer Inc makes clocks The fixed overhead costs for 2015 total $880,000 The company uses direct labor hours for fixed overhead allocation and anticipates 220,000 hours during the year for 330,000 units An equal number of units are budgeted for each month During June, 32,000 clocks were produced and $72,000 was spent on fixed overhead Required a Determine the fixed overhead rate for 2015 based on units of input b Determine the fixed overhead static budget variance for June c Determine the production volume overhead variance for June 7) Green has budgeted construction overhead for August of $260,000 for variable costs and $435,000 for fixed costs Actual costs for the month totaled $275,000 for variable and $445,000 for fixed Allocated fixed overhead totaled $440,000 The company tracks each item in an overhead control account before allocations are made to individual jobs Spending variances for August were $10,000 unfavorable for variable and $10,000 unfavorable for fixed The production volume overhead variance was $5,000 favorable Required a Make journal entries for the actual costs incurred b Make journal entries to record the variances for August 8)Haines Company sells its products for $33 each The current production level is 50,000 units, although only 40,000 units are anticipated to be sold Unit manufacturing costs are Direct materials $6 00 Direct manufacturing labor $9 00 Variable manufacturing costs $4 50 Total fixed manufacturing costs $180,000 Marketing expenses $3 00 per unit, plus $100,000 per year Required a Prepare an income statement using absorption costing b Prepare an income statement using variable costing 10) The James Inc has provided the following information Units of Output 33,000 Units 46,200 Units Direct materials $ 316,800 $ 443,520 Workers' wages 1,188,000 1,663,200 Supervisors' salaries 343,200 343,200 Equipment depreciation 166,320 166,320 Maintenance 89,760 121,440 Utilities 422,400 580,800 Total $2,526,480 $3,318,480 Using the high low method and the information provided above, a identify the linear cost function equation (be sure to variable and fixed components in the equation) b estimate the total cost at 38,000 units of output 11)What are the three criteria a company should use to evaluate and choose a cost driver Briefly explain each of the three criteria 9) Ickle Company produces a specialty statue item The following information has been provided by management Actual sales 10,000 units Budgeted production 12,000 units Selling price $425 per unit Direct material costs $87 50 per unit Fixed manufacturing costs $62 50 per unit Variable manufacturing costs $50 00 per unit Variable administrative costs $25 00 per unit Required a What is the cost per statue if absorption costing is used b What is the cost per statue if super variable costing is used c What is the total throughput contribution 1) The president of the company, Max Best, has come to you for help Use the following data to prepare a flexible budget for possible sales prod uction levels of 10,000, 11,000, and 12,000 units Show the contributi on margin at each activity level Sales price $24 per unit Variable costs Manufact uring $12 per unit Administr ative $ 3 per unit Selling $ 1 per unit Fixed costs Manufacturing Administrative $60,000 $20,000 2) Able flexiblebudget and salesvolume variances Company manufact ures tables for schools The 2015 operating budget is based on sales of 44,000 units at $55 per table Operating income is anticipate d to be $132,000 Budgeted variable costs are $35 per unit, while fixed costs total $660,000 Actual income for 2015 was a surprising $477,000 on actual sales of 46,000 units at $57 each Actual variable costs were $33 per unit and fixed costs totaled $627,000 Required Prepare a variance analysis report with both 3) The following data for the Campbell Company pertains to the productio n of 2,000 garden spades during March The spade consists of a wooden 4) handle and a metal forged tool that comes in contact with the ground Direct Materials (all materials purchased were used) Standard cost $1 00 per handle and $3 00 per metal tool Total actual cost $9,000 Materials flexiblebudget efficiency variance was $500 unfavorable Direct Manufacturing Labor Standard cost is 5 garden spades per hour at $20 00 per hour Actual cost per hour was $21 00 Labor efficiency variance was $500 favorable Required a What is the standard direct material amount per garden spade b What is the standard cost allowed for all units produced c What is the total direct materials flexiblebudget variance d What is the direct material flexiblebudget price variance e What is the total actual cost of direct manufacturing labor f W ha t is th e la bo r pri ce va ria nc e for dir Delk Efficiency Variance 15,000 favorable Company Direct Manufacturing Labor Price Variance 6,000 favorable makes Direct Manufacturing Labor Efficiency Variance 4,000 favorable separate Direct Manufacturing Labor Payable 170,000 journal entries for Required all cost Record the necessary journal entries to close the accounts for the month accountin grelated activities It uses a standard cost system for all manufact uring items For the month of June, the following activities have taken place Direct Manufact uring Materials Purchased $300,000 Direct Manufact uring Materials Used 250,000 Direct Materials Price Variance 10,000 unfavorab le (at time of purchase) Direct Materials 5) Evans Inc manufact ures pillows The 2015 operating budget is based on productio n of 25,000 pillows with 0 75 machine hour allowed per pillow Budgeted variable overhead per hour was $25 Actual productio n for 2015 was 27,000 pillows using 19,050 machine hours Actual variable costs were $23 per machine hour Required Calculate the variable overhead spending and efficiency variances 6) Farmer Inc c makes clocks The fixed overhead costs for 2015 total $880,000 The company uses direct labor hours for fixed overhead allocation and anticipate s 220,000 hours during the year for 330,000 units An equal number of units are budgeted for each month During June, 32,000 clocks were produced and $72,000 was spent on fixed overhead Required a Determin e the fixed overhead rate for 2015 based on units of input b Determine the fixed overhead staticbudget variance for June Determine the productionvolume overhead variance for June 7) Green has budgeted constructi on overhead for August of $260,000 for variable costs and $435,000 for fixed costs Actual costs for the month totaled $275,000 for variable and $445,000 for fixed Allocated fixed overhead totaled $440,000 The company tracks each item in an overhead control account before allocation s are made to individual jobs Spending variances for August were $10,000 unfavorab le for variable and $10,000 unfavorab le for fixed The productio nvolume overhead variance was $5,000 favorable Required a Make journal entries for the actual costs incurred b Make journal entries to record the variances for August 8) Haines b Company sells its products for $33 each The current productio n level is 50,000 units, although only 40,000 units are anticipate d to be sold Unit manufact uring costs are Direct materials $6 00 Direct manufact uring labor $9 00 Variable manufact uring costs $4 50 Total fixed manufact uring costs $180,000 Marketing expenses $3 00 per unit, plus $100,000 per year Required a Prepare an income statement using absorptio n costing Prepare an income statement using variable costing 10) The 580,800 James Total $2,526,480 $3,318,480 Inc has Using the highlow method and the information provided above, provided a identify the linear cost function equation (be sure to variable and fixed components in the the equation) following b estimate the total cost at 38,000 units of output informati on Units of Output 33,000 Units 46,200 Units Direct materials $ 316,800 $ 443,520 Workers' wages 1,188,000 1,663,200 Superviso rs' salaries 343,200 343,200 Equipmen t depreciati on 166,320 166,320 Maintena nce 89,760 121,440 Utilities 422,400 11What are the three criteria a company should use to evaluate and choose a cost driver Briefly explain each of the three criteria 9) Ickle Company produces a specialty statue item The following information has been provided by management Actual sales 10,000 units Budgeted production 12,000 units Selling price $425 per unit Direct material costs $87 50 per unit Fixed manufacturing costs $62 50 per unit Variable manufacturing costs $50 00 per unit Variable administrative costs $25 00 per unit Required a What is the cost per statue if absorption costing is used b What is the cost per statue if supervariable costing is used c What is the total throughput contribution

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1) The president of the company, Max Best, has come to you for help. Use the following data to prepare a flexible budget for possible

1) The president of the company, Max Best, has come to you for help. Use the following data to prepare a flexible budget for possible sales/production levels of 10,000, 11,000, and 12,000 units. Show the contribution margin at each activity level. Sales price $24 per unit Variable costs: Manufacturing $12 per unit Administrative $ 3 per unit Selling $ 1 per unit Fixed costs: Manufacturing $60,000 Administrative $20,000 2) Able Company manufactures tables for schools. The 2015 operating budget is based on sales of 44,000 units at $55 per table. Operating income is anticipated to be $132,000. Budgeted variable costs are $35 per unit, while fixed costs total $660,000. Actual income for 2015 was a surprising $477,000 on actual sales of 46,000 units at $57 each. Actual variable costs were $33 per unit and fixed costs totaled $627,000. Required: Prepare a variance analysis report with both flexible-budget and sales-volume variances. 3) The following data for the Campbell Company pertains to the production of 2,000 garden spades during March. The spade consists of a wooden handle and a metal forged tool that comes in contact with the ground. Direct Materials (all materials purchased were used): Standard cost: $1.00 per handle and $3.00 per metal tool. Total actual cost: $9,000. Materials flexible-budget efficiency variance was $500 unfavorable. Direct Manufacturing Labor: Standard cost is 5 garden spades per hour at $20.00 per hour. Actual cost per hour was $21.00. Labor efficiency variance was $500 favorable. Required: a. What is the standard direct material amount per garden spade? b. What is the standard cost allowed for all units produced? c. What is the total direct materials flexible-budget variance? d. What is the direct material flexible-budget price variance? e. What is the total actual cost of direct manufacturing labor? f. What is the labor price variance for direct manufacturing labor? 4) Delk Company makes separate journal entries for all cost accounting-related activities. It uses a standard cost system for all manufacturing items. For the month of June, the following activities have taken place: Direct Manufacturing Materials Purchased $300,000 Direct Manufacturing Materials Used 250,000 Direct Materials Price Variance 10,000 unfavorable (at time of purchase) Direct Materials Efficiency Variance 15,000 favorable Direct Manufacturing Labor Price Variance 6,000 favorable Direct Manufacturing Labor Efficiency Variance 4,000 favorable Direct Manufacturing Labor Payable 170,000 Required: Record the necessary journal entries to close the accounts for the month. 5) Evans Inc. manufactures pillows. The 2015 operating budget is based on production of 25,000 pillows with 0.75 machine-hour allowed per pillow. Budgeted variable overhead per hour was $25. Actual production for 2015 was 27,000 pillows using 19,050 machine-hours. Actual variable costs were $23 per machine-hour. Required: Calculate the variable overhead spending and efficiency variances. 6) Farmer Inc. makes clocks. The fixed overhead costs for 2015 total $880,000. The company uses direct labor-hours for fixed overhead allocation and anticipates 220,000 hours during the year for 330,000 units. An equal number of units are budgeted for each month. During June, 32,000 clocks were produced and $72,000 was spent on fixed overhead. Required: a. Determine the fixed overhead rate for 2015 based on units of input. b. Determine the fixed overhead static-budget variance for June. c. Determine the production-volume overhead variance for June. 7) Green has budgeted construction overhead for August of $260,000 for variable costs and $435,000 for fixed costs. Actual costs for the month totaled $275,000 for variable and $445,000 for fixed. Allocated fixed overhead totaled $440,000. The company tracks each item in an overhead control account before allocations are made to individual jobs. Spending variances for August were $10,000 unfavorable for variable and $10,000 unfavorable for fixed. The production-volume overhead variance was $5,000 favorable. Required: a. Make journal entries for the actual costs incurred. b. Make journal entries to record the variances for August. 8)Haines Company sells its products for $33 each. The current production level is 50,000 units, although only 40,000 units are anticipated to be sold. Unit manufacturing costs are: Direct materials $6.00 Direct manufacturing labor $9.00 Variable manufacturing costs $4.50 Total fixed manufacturing costs $180,000 Marketing expenses $3.00 per unit, plus $100,000 per year Required: a. Prepare an income statement using absorption costing. b. Prepare an income statement using variable costing. 10) The James Inc. has provided the following information: Units of Output 33,000 Units 46,200 Units Direct materials $ 316,800 $ 443,520 Workers' wages 1,188,000 1,663,200 Supervisors' salaries 343,200 343,200 Equipment depreciation 166,320 166,320 Maintenance 89,760 121,440 Utilities 422,400 580,800 Total $2,526,480 $3,318,480 Using the high-low method and the information provided above, a. identify the linear cost function equation (be sure to variable and fixed components in the equation) b. estimate the total cost at 38,000 units of output. 11)What are the three criteria a company should use to evaluate and choose a cost driver? Briefly explain each of the three criteria. 9) Ickle Company produces a specialty statue item. The following information has been provided by management: Actual sales 10,000 units Budgeted production 12,000 units Selling price $425 per unit Direct material costs $87.50 per unit Fixed manufacturing costs $62.50 per unit Variable manufacturing costs $50.00 per unit Variable administrative costs $25.00 per unit Required: a. What is the cost per statue if absorption costing is used? b. What is the cost per statue if "super-variable costing" is used? c. What is the total throughput contribution? image text in transcribed

1) The president of the company, Max Best, has come to you for help. Use the following data to prepare a flexible budget for possible sales/prod uction levels of 10,000, 11,000, and 12,000 units. Show the contributi on margin at each activity level. Sales price $24 per unit Variable costs: Manufact uring $12 per unit Administr ative $ 3 per unit Selling $ 1 per unit Fixed costs: Manufacturing Administrative $60,000 $20,000 2) Able flexiblebudget and salesvolume variances. Company manufact ures tables for schools. The 2015 operating budget is based on sales of 44,000 units at $55 per table. Operating income is anticipate d to be $132,000. Budgeted variable costs are $35 per unit, while fixed costs total $660,000. Actual income for 2015 was a surprising $477,000 on actual sales of 46,000 units at $57 each. Actual variable costs were $33 per unit and fixed costs totaled $627,000. Required : Prepare a variance analysis report with both 3) The following data for the Campbell Company pertains to the productio n of 2,000 garden spades during March. The spade consists of a wooden 4) handle and a metal forged tool that comes in contact with the ground. Direct Materials (all materials purchased were used): Standard cost: $1.00 per handle and $3.00 per metal tool. Total actual cost: $9,000. Materials flexiblebudget efficiency variance was $500 unfavorable. Direct Manufacturing Labor: Standard cost is 5 garden spades per hour at $20.00 per hour. Actual cost per hour was $21.00. Labor efficiency variance was $500 favorable. Required: a. What is the standard direct material amount per garden spade? b. What is the standard cost allowed for all units produced? c. What is the total direct materials flexiblebudget variance? d. What is the direct material flexiblebudget price variance? e. What is the total actual cost of direct manufacturing labor? f. W ha t is th e la bo r pri ce va ria nc e for dir Delk Efficiency Variance 15,000 favorable Company Direct Manufacturing Labor Price Variance 6,000 favorable makes Direct Manufacturing Labor Efficiency Variance 4,000 favorable separate Direct Manufacturing Labor Payable 170,000 journal entries for Required: all cost Record the necessary journal entries to close the accounts for the month. accountin grelated activities. It uses a standard cost system for all manufact uring items. For the month of June, the following activities have taken place: Direct Manufact uring Materials Purchased $300,000 Direct Manufact uring Materials Used 250,000 Direct Materials Price Variance 10,000 unfavorab le (at time of purchase) Direct Materials 5) Evans Inc. manufact ures pillows. The 2015 operating budget is based on productio n of 25,000 pillows with 0.75 machine hour allowed per pillow. Budgeted variable overhead per hour was $25. Actual productio n for 2015 was 27,000 pillows using 19,050 machine hours. Actual variable costs were $23 per machine hour. Required : Calculate the variable overhead spending and efficiency variances. 6) Farmer Inc. c. makes clocks. The fixed overhead costs for 2015 total $880,000. The company uses direct labor hours for fixed overhead allocation and anticipate s 220,000 hours during the year for 330,000 units. An equal number of units are budgeted for each month. During June, 32,000 clocks were produced and $72,000 was spent on fixed overhead. Required : a. Determin e the fixed overhead rate for 2015 based on units of input. b. Determine the fixed overhead staticbudget variance for June. Determine the productionvolume overhead variance for June. 7) Green has budgeted constructi on overhead for August of $260,000 for variable costs and $435,000 for fixed costs. Actual costs for the month totaled $275,000 for variable and $445,000 for fixed. Allocated fixed overhead totaled $440,000. The company tracks each item in an overhead control account before allocation s are made to individual jobs. Spending variances for August were $10,000 unfavorab le for variable and $10,000 unfavorab le for fixed. The productio nvolume overhead variance was $5,000 favorable. Required: a. Make journal entries for the actual costs incurred. b. Make journal entries to record the variances for August. 8) Haines b. Company sells its products for $33 each. The current productio n level is 50,000 units, although only 40,000 units are anticipate d to be sold. Unit manufact uring costs are: Direct materials $6.00 Direct manufact uring labor $9.00 Variable manufact uring costs $4.50 Total fixed manufact uring costs $180,000 Marketing expenses $3.00 per unit, plus $100,000 per year Required : a. Prepare an income statement using absorptio n costing. Prepare an income statement using variable costing. 10) The 580,800 James Total $2,526,480 $3,318,480 Inc. has Using the highlow method and the information provided above, provided a. identify the linear cost function equation (be sure to variable and fixed components in the the equation) following b. estimate the total cost at 38,000 units of output. informati on: Units of Output 33,000 Units 46,200 Units Direct materials $ 316,800 $ 443,520 Workers' wages 1,188,000 1,663,200 Superviso rs' salaries 343,200 343,200 Equipmen t depreciati on 166,320 166,320 Maintena nce 89,760 121,440 Utilities 422,400 11What are the three criteria a company should use to evaluate and choose a cost driver? Briefly explain each of the three criteria. 9) Ickle Company produces a specialty statue item. The following information has been provided by management: Actual sales 10,000 units Budgeted production 12,000 units Selling price $425 per unit Direct material costs $87.50 per unit Fixed manufacturing costs $62.50 per unit Variable manufacturing costs $50.00 per unit Variable administrative costs $25.00 per unit Required: a. What is the cost per statue if absorption costing is used? b. What is the cost per statue if "supervariable costing" is used? c. What is the total throughput contribution