Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all parts. thanks! Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to

Please answer all parts. thanks!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 138,000 cases at a budgeted price of $78 per case this year. The standard direct cost sheet for one case of pet food follows: Variable overhead is applied based on direct labor-hours. The variable overhead rate is $52 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $21 per unit. All nonmanufacturing costs are fixed and are budgeted at $3.1million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $408,000 favorable. Required: Note: Enter your answers in thousands of dollars. Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 138,000 cases at a budgeted price of $60 per case this yeac. The standard direct cost sheet for one case of pet food follows: Variable overhead is applied based on direct labor-hours. The variable overhead rate is $16 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $10 per unit. All nonmanufacturing costs are fixed and are budgeted at $2.2million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $336,000 favorable. The following is the actual income statement (in thousands of dollars) for the year for Golden Food Products: Required: Prepore a profit variance analysis. Note: Enter your answers in thousands of dollars. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 127,000 cases at a budgeted price of $60 per case this year. The standard direct cost sheet for one case of pet food follows: Variable overhead is applied based on direct labor-hours. The variable overhead rate is $16 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $10 per unit. All nonmanufacturing costs are fixed and are budgeted at $2.2 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $336,000 favorable. The following is the actual income statement (in thousands of dollars) for the year for Golden Food Products: During the year, the company purchased 327,000 pounds of material and employed 34,460 hours of direct labor. Required: a. Compute the direct materials price and efficiency variances. b. Compute the direct labor price and efficiency variances. c. Compute the variable overhead price and efficiency variances. Note: For all requirements, enter your answers in whole dollars. Indicate the effect of each variance by selecting "F" for favorable, or " U " for unfavorable. If there is no effect, do not select either option. Exercise 16-50 (Algo) Fixed Cost Variances (LO 16-6) Golden Food Products produces special-formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell 120,500 cases at a budgeted price of $61 per case this year. The standard direct cost sheet for one case of pet food follows: Variable overhead is applied based on direct labor-hours. The variable overhead rate is $16 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $12 per unit. All nonmanufacturing costs are fixed and are budgeted at $2.2million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $344,000 favorable. The following is the actual income statement (in thousands of dollars) for the year for Golden Food Products: Required: What are the fixed overhead price and production volume variances for Golden Food Products? Note: Enter your answers in whole dollars. Indicate the effect of each variance by selecting "F" for favorable, or " U " for unfavorable. If there is no effect, do not select either option

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_2

Step: 3

blur-text-image_3

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

Ethics in Accounting A Decision Making Approach

Authors: Gordon Klein

1st edition

1118928334, 978-1118928332

More Books

Students also viewed these Accounting questions

Question

3. Test your draft's usefulness.

Answered: 1 week ago

Question

Which of the following is NOT a relational operator? 1. =

Answered: 1 week ago