You ask me to increase my price but the last two questions you answer were not completely correct how about 20.00? I over paid last time for answers that my instructor show me was incorrect I can send you the corrected information if you want.

Problem 1 Crede Manufacturing Company uses a standard cost accounting system. In 2005, 33,000 units were produced. Each unit took several pounds of direct materials and 113 standard hours of direct labor at a standard hourly rate of $12.00. Normal capacity was 42,000 direct labor hours. During the year, 132,000 pounds of raw materials were purchased at $0.90 per pound. All pounds purchased were used during the year. Instructions (a) If the materials price variance was $3,960 unfavorable, what was the standard materials price per pound? AQ 132,000 * * / - AP $.90 132,000 $.90 $.90 - SP SP SP SP = MPV = $3,960.00 U / 132,000 = .03 -$ .90 =$ .87 per pound (b) If the materials quantity variance was $2,871 favorable, what was the standard materials quantity per unit? SP $.87 * AQ SQ = MQV * 132,000 - SQ = $ 2871 U / $.87 /$ .87 132,000 - SQ = 3,300 - 132,000 132,000 SQ = 135,300 Units Prod. / 33,000 SQ per unit = $ 4.10 pounds/unit (c) What were the standard hours allowed for the units produced? Units Produced 33,000 Standard Hours x 1,334 Standard Hours Allowed 44,002 for 33,000 units produced (d) If the labor quantity variance was $8,400 unfavorable, what were the actual direct labor hours worked? SR * AH - SH = LQV $ 12.00 * AH - 44,000 = $ 8,400 U / $12.00 /$ 12.00 AH - 44,000 = 700 + 44,000 + 44,000 Hours worked = 44,700 Actual Direct Labor hours worked (e) If the labor price variance was $4,470 favorable, what was the actual rate per hour? (f) If total budgeted manufacturing overhead was $327,600 at normal capacity, what was the predetermined overhead rate per direct labor hour? (g) What was the standard cost per unit of product? (h) How much overhead was applied to production during the year? (i) If the standard fixed overhead rate was $2.50, what was the overhead volume variance? (j) If the overhead controllable variance was $3,000 favorable, what were the total variable overhead costs incurred? (Assume that the overhead controllable variance relates only to variable costs.) (k) Using selected answers above, what were the total costs assigned to work in process? 2 problem Fowler Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production. Costs Incurred Production in Units Production Costs 5,000 Total Cost 10,000 Cost/ Unit Total Cost Cost/ Unit Direct materials Direct labor Utilities Rent Maintenance Supervisory salaries $8,250 9,400 1,400 4,000 800 1,000 $1.65 1.88 0.28 0.80 0.16 0.20 $16,500 18,800 2,300 4,000 1,200 1,000 $1.65 1.88 0.23 0.40 0.12 0.10 Instructions (a) Define the terms variable costs, fixed costs, and mixed costs. (b) Classify each cost above as either variable, fixed, or mixed Problem 3 Regional Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. Both planes seat 10 passengers each, and they fly commuters from Regional's base airport to the major city in the state, Metropolis. Each month 40 round-trip flights are made. Shown on page 219 is a recent month's activity in the form of a costvolume-profit income statement. Fare revenues (300 fares) Variable costs Fuel Snacks and drinks Landing fees Supplies and forms Contribution margin Fixed costs Depreciation Salaries Advertising Airport hanger fees Net income $45,000 $14,000 800 2,000 1,200 3,000 15,000 500 1,750 18,000 27,000 20,250 $ 6,750 Instructions (a) Calculate the break-even point in (1) dollars and (2) number of fares. (b) Without calculations, determine the contribution margin at the break-even point. (c) If fares were decreased by 10%, an additional 100 fares could be generated. However, variable costs would increase by 35%. Should the fare decrease be adopted? Problem 4 Shynee Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Sarco, Barco, and Larco. Each of these products can be sold as is, or it can be processed further and sold for a higher price. The company incurs joint costs of $180,000 to process one batch of the raw material that produces the three joint products. The following cost and sales information is available for one batch of each product. Sales Value at Split-off Point Sarco $200,000 Barco 300,000 Larco 400,000 Allocated Joint Costs Cost to Process Further Sales Value of Processed Product $40,000 60,000 80,000 $120,000 89,000 250,000 $300,000 400,000 800,000 Instructions Determine whether each of the three joint products should be sold as is, or processed further. Last Problem 5 E6-10 Maggie Sharrer, a recent graduate of Rolling's accounting program, evaluated the operating performance of Poway Company's six divisions. Maggie made the following presentation to Poway's Board of Directors and suggested the Erie Division be eliminated. \"If the Erie Division is eliminated,\" she said, \"our total profits would increase by $24,500.\" Sales Cost of goods sold Gross profit Operating expenses Net income The Other Five Divisions $1,664,200 978,520 685,680 527,940 $ 157,740 Erie Division $100,000 76,500 23,500 48,000 $ (24,500) Total $1,764,200 1,055,020 709,180 575,940 $ 133,240 In the Erie Division, cost of goods sold is $60,000 variable and $16,500 fixed, and operating expenses are $25,000 variable and $23,000 fixed. None of the Erie Division's fixed costs will be eliminated if the division is discontinued. Instructions Is Maggie right about eliminating the Erie Division? Prepare a schedule to support your