Walkenhorst Company?s machining department prepared its 2016 budget based on the following data:
Practical capacity40,000unitsMachine hours per unit2.00Variable factory overhead$3.00per machine hourFixed factory overhead$408,000
The department uses machine hours to apply factory overhead. In 2016, the department used 85,600 machine hours and $669,000 in total manufacturing overhead to manufacture 42,050 units. Actual fixed overhead for the year was $415,000.
Required:Determine for the year:1.The variable, fixed, and total factory overhead application rates.(Round your answers to 2 decimal places.)
Assume that in June Schmidt Machinery Company (Exhibit 14.1] manufactured and sold 1,040 units for $715 each. During thia month the company incurred \"SEEM total variable expenaea and $1BDUD total xed expanaea. Required for the Month of June: 1. Prepare a flexible budget for the production and sale of 1,045 units. 'v'ariable expenses _ Contribution margin _ Budgeted operating income m 2. Compute for June: a. The sales volume varianceI in terms of operating income. b. The sales volume variance, in terms of contribution margin. {Do not round Intermediate oaloulatiorla. Round your nal answers to nearest whole dollar amount} Operating income Contribution margin \fBoron Chemical Company produces a synthetic resin that is used in the automotive industry. The company uses a standard cost system. Fer each gallon of output, the following direct manufacturing costs are anticipated: Direct lab-or: 3.1D hours at $2E.DD per hour $32.6!) Direct materials: 3.1!) gallons at 521.0!) per gallon $651!] [ During December of the current year. Boron produced a total of 2.51 0 gallons of output and incurred the following direct manufacturing costs: Direct labor: T301] hours worked @ an average wage rate of $2D.ED per hour Direct materials: Purchased: 9,200 gallons @ $21.45 per gallon Used in production: 2.200 gallons ' Boron records price variances for materials at the time of purchase. Required: Prepare jcumal entries for the following events and transactions: 1. Purchase, on credit. of direct materials. 2. Direct materials issued to production. 3. Direct labor cost of units completed this period. 4. Direct manufacturing cost [direct lab-or plus direct materials} of units completed and transferred to Finished Goods Inventory. 5. SaleI for $26G per gallonI of 2,322 gallons of output. (Hint: 1'r'ou will need two journal entries here.) [If no entry is required for a transactionl'event. select "Ho journal entry required" in the rst account eld. Rou nd final answers to the nearest 1lvhole dollar.} 1Illul'alltenhoret Company's machining department prepared its it budget baeed on the following data: Practical capacity 43,0!!!) unite Mad-line hours per unit Z 1lul'ariable factory overhead $31K) per machine hcur Fmed famcry overhead $40M!!!) [ The department ueee machine hours to apply factory overhead. In 2015, the department used machine hours and $559,000 in total manufacturing overhead to manufacture 42,05l] unite. Actual xed overhead for the year was $415,:mc. Required: Determine for the year. 1. The variable, xed, and total factory overhead application rates. [Round your answers to 2 decimal places.) Variable overhead application rate Fixed overhead application rate Total factory overhead application rate 2. The exible budget for overhead oest based on output achieved in 21H 5. {Do not round Intermediate calculations. Round your nal answers to nearest whole dollar amount} 3. The xed overhead production volume variance. [Do not round inten'nediate calculations. Round your final answers to nearest whole dollar amount.) 4. The total everl'leed spending 1irerienlne. {Do net round interrnedlate calculations. Round your nal answers to nearest whole dollar amount.) :: 5. The owed-lead el'i::ieni:t_.ur Vl'il'lm. {Do not round intermediate calculations. Round your nal answers to nearest whole dollar amount.) :: \fAssume that in June Schmidt Machinery Company {Exhibit 14.1] manufactured and sold 1,045 units for W15 each. During this month the company incuned $451600 total variable expenses and $1BD,6DIII total xed expenses. Required for the Month of June: 1. Prepare a flexible budget for the production end sale of 1,04l] units. 1I.I|'ariable expenses _ Contribution margin _ Budgeted operating income E- 2. Compute for June: a. The sales volume varianceI in terms of operating income. b. The sales volume variance, in terms of contribution margin. {Do not round intermediate calculations. Round your nal answers to nearest whole dollar amount} Operating income Contribution margin
