Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with D & E only. Betsy Stalling manufactures rubber mats for use as barn footings for animal stalls. For the month of March

Please help with D & E only.

Betsy Stalling manufactures rubber mats for use as barn footings for animal stalls. For the month of March 2021, management has projected sales of 6,000 mats, selling at a price of $40/mat. Fixed costs include fixed manufacturing overhead budgeted at $9,000, advertising budgeted at $7,000 for the month and office rent budgeted at $8,000 for the month. The budgeted variable cost standards are shown below. Variable overhead is allocated based on labor hours.

Budgeted Cost Standards Budgeted Quantity Budgeted Price Budgeted Variable Cost, per mat
Direct Materials 6 lbs. rubber $1 per lb. $6.00
Direct Labor 0.2 hours $13 per DLH $2.60
Variable Manufacturing Overhead 0.2 hours $3 per DLH $0.60
Total Variable Standard Cost, per Unit $9.20

At the end of March, management reported the following actual detailed information:

Total sales in units 7,500 mats
Total sales in dollars $307,500
Total material used 46,500 lbs.
Total material value $58,125
Total hours worked 2,250 hrs.
Total wages paid $28,125
Total variable overhead $5,625

For this assignment, let's assume no variable sales and administrative costs.

REQUIRED

Answer the following questions:

a. What is the standard amount of material for 7,500 mats?

b. What was the actual cost for each pound of rubber?

c. What is the standard amount of labor hours for 7,500 mats?

d. What was the actual wage rate for the month?

e. What was the actual overhead rate per labor hour?

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

More Books

Students also viewed these Accounting questions

Question

Be familiar with the Unified Process and its extensions.

Answered: 1 week ago

Question

=+a) Find a 95% confidence interval for the mean drive distance.

Answered: 1 week ago