Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all parts to both questions!! i will uplike! thank you in advance!! first picture is the first question second picture is the second

please answer all parts to both questions!! i will uplike! thank you in advance!!
first picture is the first question second picture is the second question.
image text in transcribed
image text in transcribed
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 60 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost per Cost per per Month Course Student Instructor wages $ 2,970 Classroom supplies $ 310 Utilities $ 1,220 $ 70 Campus rent $5,000 Insurance $ 2,100 Administrative expenses $ 3,90 $ 42 $7 For example, administrative expenses should be $3,900 per month plus $42 per course plus $7 per student. The company's sales should average $880 per student. The company planned to run four courses with a total of 60 students; however, it actually ran four courses with a total of only 54 students. The actual operating results for September appear below: Actual Revenue $ 49,900 Instructor wages $ 11,160 Classroom supplies $ 18,450 Utilities $ 1,910 Campus rent $ 5,000 Insurance $ 2,240 Administrative expenses $ 3,914 Required: 1. Prepare the company's planning budget for September 2. Prepare the company's flexible budget for September 3. Calculate the revenue and spending variances for September Lane Company manufactures a single product and applies overhead cost to that product using standard direct labor-hours. The budgeted variable manufacturing overhead is $5.80 per direct labor-hour and the budgeted fixed manufacturing overhead is $3,087,000 per year. The standard quantity of materials is 4 pounds per unit and the standard cost is $12.50 per pound. The standard direct labor hours per unit is 1.5 hours and the standard labor rate is $13.90 per hour. The company planned to operate at a denominator activity level of 315,000 direct labor-hours and to produce 210,000 units of product during the most recent year. Actual activity and costs for the year were as follows: Actual number of units produced 252,000 Actual direct labor-hours worked 409,500 Actual variable manufacturing overhead cost incurred $ 1,351, 350 Actual fixed manufacturing overhead cost incurred $ 3,276,000 Required: 1. Compute the predetermined overhead rate for the year Break the rate down into variable and fixed elements. 2. Prepare a standard cost card for the company's product. 3a. Compute the standard direct labor-hours allowed for the year's production, 3b. Complete the following Manufacturing Overhead T-account for the year. 4. Determine the reason for any underapplied or overapplied overhead for the year by computing the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances, Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req Req 3B Reg 4 Comoute the predetermined overhead rate for the vean. Break the rate down into variable and fixed elements. (Round vour Prou 22 of 23 E! Next

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

Exploring Strategic Change

Authors: Julia Balogun, Veronica Hope Hailey, Stafanie Gustafsson

4th Edition

0273778919, 9780273778912

More Books

Students also viewed these Accounting questions

Question

a. What aspects of the situation are under your control?

Answered: 1 week ago