Question #1:Chapter 10 SHOW WORK

Campbell Clothing produces men's ties. The following budgeted and actual amounts are for 2020:

CostBudget at 5,000 UnitsActual Amounts at 5,800 Units

Direct materials$60,000$71,000

Direct labor75,00086,500

Equipment depreciation5,0005,000

Indirect labor7,5008,600

Indirect materials9,0009,600

Rent and insurance12,00013,000

Instructions

Prepare a performance budget report for Campbell Clothing for the year.

Label Favorable and unfavorable

Question #2:Chapter 11 SHOW WORK

More Hits Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2019 for each baseball bat:

Manufacturing

Direct MaterialsDirect LaborOverhead

Standard Quantity2 Pounds (Aluminum)1/2 hour1/2 hour

Standard Price$4.00$10.00$6.00

Unit Standard Cost$8.00$5.00$3.00

In 2020, the company planned to produce 120,000 baseball bats at a level of 60,000 hours of direct labor.

Actual results for 2020 are presented below:

1.Direct materials purchases were 246,000 pounds of aluminum which cost $1,020,900.

2.Direct materials used were 220,000 pounds of aluminum.

3.Direct labor costs were $575,260 for 58,700 direct labor hours actually worked.

4.Total manufacturing overhead was $352,000.

5.Actual production was 114,000 baseball bats.

Instructions

(a)Compute the following variances:

1. Direct materials price.

2. Direct materials quantity.

3. Total direct materials variance

4. Total direct labor variance

5. Direct labor price.

6. Direct labor quantity.

7. Total overhead variance.

(b). Is More Hits managed efficiently? Explain

Question #3:Chapter 12 SHOW WORK

Johnson Company is considering purchasing one of two new machines. The following estimates are available for each machine:

Machine 1Machine 2

Initial cost$152,000$169,000

Annual cash inflows50,00060,000

Annual cash outflows15,00020,000

Estimated useful life6 years6 years

The company's minimum required rate of return is 9%.

Instructions

(a)Compute the (1) net present value, (2) payback in years for each machine.

(b)Which machine should be purchased? Explain.