Accounting II
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Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area, The company's planning budget for May appears below. Puget Sound Diver's Planning Budget For the Month Ended May 31 Budgeted diving-hours (9) 350 Revenue ($390.004) $136,500 Expenses Wages and salaries ($11,600 + $130.000) 57,100 Supplies ($4.000) 1,400 Equipment rental ($2,400 - $22.00) 10,100 Insurance ($3,900) 3,900 Miscellaneous (5550 - $1.469) 1,061 Total expense 23,561 $ 62,939 Net operating Income During May, the company's actual activity was 340 diving-hours Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Actual diving-hours Revenue + Expenses Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income Proy 1 of 6 Ne Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7700 pounds of oysters in August. The company's flexible budget for August appears below: Quilcone Oysteria Plexible Budget For the Month Ended August 31 Actual pounds (9) 7,700 $ 31,570 Revenue ($4.10) Expensest Packing supplies ($0.359) Oyster bed maintenance ($3,500) Wages and salaries ($2,300 + $0.509) Shipping ($0.759) Utilities ($1,270) Other ($480 + $0.019) Total expense Net operating income 2,695 3,500 6,150 5,775 1,270 552 19,947 $ 11,62) The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,700 $ 26,800 Revenue Expenses Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 2,665 3,360 6,560 5,505 1.000 1,122 20.547 Required: Calculate the company's revenue and spending variances for August. (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.) Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic, During the quarter ending June 30, the company manufactured 3,500 helmets, using 2,240 kilograms of plastic. The plastic cost the company $17,024. According to the standard cost card, each helmet should require 0.58 kilograms of plastic, at a cost of $8.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,500 helmets? 2. What is the standard materials cost allowed (SQ * SP) to make 3,500 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? {For requirements 3 and 4, indicate the effect of each variance by selecting "e" for favorable, "U" for unfavorable, and "None" for no effect (1.e. zero variance). Input all amounts as positive values. Do not round Intermediate calculations.) 1 2 Standard quantity of kilograms allowed Standard cost allowed for actual output Materials spending variance Materials price variance Materials quantity variance SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is gellied salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,000 of these meals using 750 direct labor-hours. The company paid its direct labor workers a total of $6,000 for this work, or $8.00 per hour. According to the standard cost card for this meat, it should require 0.20 direct lobor-hours at a cost of $7.00 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,000 meals? 2. What is the standard labor cost allowed (SHSR) to prepare 4.000 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, indicate the effect of each variance by selecting for favorable. "U" for unfavorable, and "None" for no effect ( zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 2. 3. Standard labor hours allowed Standard labor cost allowed Labor spending variance Laborrate variance Labor efficiency variance 4 Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours. In the most recent month, 115,000 items were shipped to customers using 3,800 direct labor-hours. The company incurred a total of $10,450 in variable overhead costs. According to the company's standards, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $2.80 per direct labor-hour, Required: 1. What is the standard labor-hours allowed (SH) to ship 115,000 items to customers? 2. What is the standard variable overhead cost allowed (SHSR) to ship 115,000 items to customers? 3. What is the variable overhead spending variance? 4. What is the variable overhead rate variance and the variable overhead efficiency variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard quantity of labor hours allowed 2. Standard variable overhead cost allowed 3. Variable overhead spending variance 4. Variable overhead rate variance Variable overhead officiency variance
