Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE ANSWER THE FOLLOWING QUESTION ( TIME SENSITIVE) Audra's Fleet Feet Inc. produces dance shoes for stores all over the world. While the pairs of
PLEASE ANSWER THE FOLLOWING QUESTION ( TIME SENSITIVE)
Audra's Fleet Feet Inc. produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping department records both variable and fixed overhead costs. The following information pertains to shipping costs for 2018 E: (Click the icon to view the information.) Required Requirement 1. What is the static-budget number of crates for 2018? Determine the formula to calculate the amount. Then enter the amounts in the formula to calculate the static-budget number of crates. = Static-budget number of crates crates Requirement 2. What is the flexible-budget number of crates for 2018? Determine the formula to calculate the amount. Then enter the amounts in the formula to calculate the flexible-budget number of crates. = Flexible-budget number of crates crates Requirement 3. What is the actual number of crates shipped in 2018? Determine the formula to calculate the amount. Then enter the amounts in the formula to calculate the actual number of crates. Actual number of crates crates Requirement 4. Assuming fixed overhead is allocated using crate-packing hours, what is the predetermined fixed overhead allocation rate? Determine the formula first. Then enter the amounts to calculate the static-budget fixed overhead rate. (Round the amounts in the formula to the nearest whole number. Round your final answer to the nearest cent.) Static-budget fixed overhead rate per hour Requirement 5. For variable overhead costs, calculate the rate and efficiency variances. Begin by calculating the following amounts: (Round your answers to the nearest whole dollar.) Budgeted Hours Allowed for Actual Variable Actual Hours x Actual Output x Budgeted Overhead Budgeted Rate Rate Calculate the rate and efficiency variances. Label each variance as favourable (F) or unfavourable (U). (If the efficiency variance is zero, enter "0" and then select "F".) Rate variance: Efficiency variance: Requirement 6. For fixed overhead costs, calculate the rate and the production-volume variances. Begin by calculating the following amounts: (Round your answers to the nearest whole dollar.) Budgeted Hours Allowed for Actual Fixed Static Budget Fixed Actual Output x Budgeted Overhead Overhead Rate Calculate the rate and production-volume variances. Label each variance as favourable (F) or unfavourable (U). Rate variance: Production-volume variance: i Information - X Pairs of shoes shipped Average number of pairs of shoes per crate Packing hours per crate Variable overhead cost per hour Fixed overhead cost Static-Budget Amounts Actual Results 240,000 180,000 12 10 1.6 hours 1.4 hours $ 23 65,000 $ 67,500 22 $ CA Print Done 1 Required 1. What is the static-budget number of crates for 2018? 2. What is the flexible-budget number of crates for 2018? 3. What is the actual number of crates shipped in 2018? 4. Assuming fixed overhead is allocated using crate-packing hours, what is the predetermined fixed overhead allocation rate? 5. For variable overhead costs, calculate the rate and efficiency variances. 6. For fixed overhead costs, calculate the rate and the production-volume variancesStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started