Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given Data/Problem Information: Information: Authentic Products, Inc. manufactures and sells several different products. Performance reports are prepared each month for each department. The cost formulas

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Given Data/Problem Information: Information: Authentic Products, Inc. manufactures and sells several different products. Performance reports are prepared each month for each department. The cost formulas used for the Production Department are given below.q represents the number of direct-labor hours. Also reported below are the actual costs incurred by the Production Department in March. Although the company planned to work 4,000 direct labor-hours in March, it actually worked 4,100 direct labor-hours. Cost Formulas: Fixed Cost Variable Cost per a 4,000 Planned direct labor-hours (q) for the month Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration 19.00 2.00 1.00 0.50 4,000 + 5,600 + 1,400 + 20,000 9,000 3,500 13,500 + 1.00 Actual Hours and Costs Incurred in March: Actual direct labor-hours (g) worked 4,100 Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration 78,500 12,000 9,100 4,200 20,500 9,000 3,400 18,000 Points Possible: 10 To receive full credit, you must use cell references (linking) when possible and Excel formulas for all calculated amounts. Use the information on the Given Data worksheet to prepare a planning budget and a spending variances report for the Production Department for March. AUTHENTIC PRODUCTS, INC. Production Department Planning Budget For the Month Ended March 31 Planning Budget Labor-hours Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expenses In the report below, in the third column, use Excel to compute a spending variance for each cost. Then, in the last column, select F for favorable or U for unfavorable. Do not select a letter if 0 variance. Spending Variances AUTHENTIC PRODUCTS, INC. Production Department Spending Variances For the Month Ended March 31 Actual Flexible Results Budget Labor-hours Direct labor Indirect labor Utilities Supplies Equipment depreciation Factory rent Property taxes Factory administration Total expenses

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

Accounting

Authors: Michael J. Jones

3rd Edition

1119977185, 9781119977186

More Books

Students also viewed these Accounting questions