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Styles Question 2 . Time: 10 mins Total: 10 marks . For the current year, Bonnet Inc., had sales of 42,000 units and production of

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Styles Question 2 . Time: 10 mins Total: 10 marks . For the current year, Bonnet Inc., had sales of 42,000 units and production of 50,000 units. Other information for the year included: Direct manufacturing labour Variable manufacturing overhead Direct materials Variable selling expenses Fixed administrative expenses Fixed manufacturing overhead There was no beginning inventory $169,900 73,500 62,300 21,000 224,000 125,500 Required: a. Compute the ending finished goods inventory under both absorption and variable costing. b. Compute the cost of goods sold under both absorption and variable costing. Apple Valley Orchards, Inc. (AVO), developed standard costs for direct material and direct labour. In 2019, AVO estimated the following standard costs for one of their most well loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples. Budgeted quantity Budgeted price Direct materials 1.5 kilograms $7.25 per kilogram Direct labor 0.25 hours $14.00 per hour HU During September 2020, AVO produced and sold 1.200 pies using 1,875 kilograms of direct materials at an average cost per kilogram of $7.00 and 280 direct labour hours at an average wage of $14.25 per hour. a) Calculate September's direct material flexible-budget variance b) Calculate September's direct material rate variance c) Calculate September's direct material efficiency variance b) Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for Wealth Managers during 2018? I c) Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools? d) Using activity-based costing to allocate overhead costs, what is the total manufacturing overhead cost estimate for Wealth Managers during 2018

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