Classwork: 16-34. Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The...
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Classwork: 16-34. Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company has no inventories; Units produced equals units sold. The master budget calls for the company to manufacture and sell 100,000 liters at a budgeted price of $75 per liter this year. Variable overhead is applied based on direct labor hours. The company has the following information. Liters (of product) DM pounds per liter DL hours per liter Selling Price per liter DM Cost per pound DL Cost per hour Variable Mnfg Overhead (per DL hour) Fixed Mnfg Overhead Fixed Mkt & Admin Costs Actual Quantities, Prices, & Costs 94,000 1.80 0.65 $77.00 $4.20 $22.00 $21.00 $1,050,000 $1,230,000 Budgeted Quantities, Prices, & Costs 100,000 2.00 0.50 $75.00 $40 $24.00 $20.00 $1,300,000 $1,200,000 Prepare a Variance Analysis by generating the Flexible Budget and Actual Performance. Calculate the Price and Spending Variances. Question 1: For the Flexible Budget, enter Contribution Margin. Question 2: For the Flexible Budget, enter Operating Profit. Question 3: For Actual Performance, enter Contribution Margin. Question 4: For Actual Performance, enter Operating Profit. 4 Enter Favorable Variance as Positive Number, Unfavorable Variance as Negative Number. Question 5: Enter the Price Variance for Revenue. Question 6: Enter the Spending Variance for Direct Materials Question 7: Enter the Spending Variance for Direct Labor. Question 8: Enter the Spending Variance for Variable Mnfg. Overhead. Question 9: Enter the Spending Variance for Fixed Mnfg. Overhead. Question 10: Enter the Spending Variance for Fixed Marketing & Administrative Costs. Classwork: 16-34. Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company has no inventories; Units produced equals units sold. The master budget calls for the company to manufacture and sell 100,000 liters at a budgeted price of $75 per liter this year. Variable overhead is applied based on direct labor hours. The company has the following information. Liters (of product) DM pounds per liter DL hours per liter Selling Price per liter DM Cost per pound DL Cost per hour Variable Mnfg Overhead (per DL hour) Fixed Mnfg Overhead Fixed Mkt & Admin Costs Actual Quantities, Prices, & Costs 94,000 1.80 0.65 $77.00 $4.20 $22.00 $21.00 $1,050,000 $1,230,000 Budgeted Quantities, Prices, & Costs 100,000 2.00 0.50 $75.00 $40 $24.00 $20.00 $1,300,000 $1,200,000 Prepare a Variance Analysis by generating the Flexible Budget and Actual Performance. Calculate the Price and Spending Variances. Question 1: For the Flexible Budget, enter Contribution Margin. Question 2: For the Flexible Budget, enter Operating Profit. Question 3: For Actual Performance, enter Contribution Margin. Question 4: For Actual Performance, enter Operating Profit. 4 Enter Favorable Variance as Positive Number, Unfavorable Variance as Negative Number. Question 5: Enter the Price Variance for Revenue. Question 6: Enter the Spending Variance for Direct Materials Question 7: Enter the Spending Variance for Direct Labor. Question 8: Enter the Spending Variance for Variable Mnfg. Overhead. Question 9: Enter the Spending Variance for Fixed Mnfg. Overhead. Question 10: Enter the Spending Variance for Fixed Marketing & Administrative Costs.
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259969478
6th edition
Authors: William N. Lanen, Shannon Anderson, Michael W Maher
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