Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Maple Leaves Inc. produces portable ice rinks. The standard cost for one rink is as follows: Standard Quantity or Hours 1.30 kilograms 0.80 hours Standard

Maple Leaves Inc. produces portable ice rinks. The standard cost for one rink is as follows: Standard Quantity or Hours 1.30 kilograms 0.80 hours Standard Cost Direct materials Standard Price or Rate $4.00 per kilogram $5.20 Direct labour $5.00 per hour 4.00 Variable manufacturing overhead 0.50 machine-hours $2.00 per machine-hour 1.00 Total standard cost $10.201 The plant has been having problems for some time, as is shown by its December income statement when it produced and sold 15,200 rinks; the normal amount is 15,350 rinks per month. Fixed costs are allocated using machine-hours. Flexible Budgeted $ 456,000 Actual $ 456,000 Sales (15,200 rinks) Less: Variable expenses: Variable cost of goods sold" Variable selling expenses Total variable expenses Contribution margin Less: Fixed expenses Manufacturing overhead Selling and administrative Total fixed expenses Net income 155,040 200,329 20,100 20,300 175,340 220,629 280,660 235,371 112,000 132,000 85,120 85,120 217,120 217,120 $63,540 $10,251 "Contains direct materials, direct labour, and variable manufacturing overheadimage text in transcribed

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

An Introduction To Derivative Securities Financial Markets And Risk Management

Authors: Robert A. Jarrow, Arkadev Chatterjee

2nd Edition

194465965X, 978-1944659653

More Books

Students also viewed these Accounting questions