Question :
SHORT ANSWER. Write the word or phrase that best completes : 1196271
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
76) A hardware retailing company with several locations anticipated that it would have 96,000 sales units for 664 customer shipments. Average storage bin usage for various inventories was estimated to be 200 per day. The costs and cost drivers were determined to be as follows:
Item Fixed Variable Cost driver
Product handling$10,000$1.25 per 100 units
Storage3.00 per storage bin
Utilities1,0001.50 per 100 units
Shipping clerks1,0001.00 per shipment
Supplies0.50 per shipment
During the year the warehouse processed 90,000 units for 600 customer shipments. The workers used 225 storage bins on average each day to sort, store, and process goods for shipment. The actual costs for were:
Item Actual costs
Product handling$10,900
Storage465
Utilities2,020
Shipping clerks1,400
Supplies340
Required:
a.Prepare a static budget and show the variances.
b.Prepare a flexible budget and show the variances 76) _____________ 77) Use the following data to prepare a flexible budget for possible sales/ production levels of 10,000, 11,000 and 12,000 units. Show the contribution margin at each activity level.
Sales price$24.00 per unit
Variable costs:
Manufacturing$12.00 per unit
Administrative$3.00 per unit
Selling$1.00 per unit
Fixed costs:
Manufacturing$60,000
Administrative$20,000 77) _____________ 78) Littrell Company produces chairs and has determined the following direct cost categories and budgeted amounts:
Standard InputsStandard Cost
Categoryfor 1 outputper input
Direct Materials1.00$7.50
Direct Labor0.309.00
Direct Marketing0.503.00
Actual performance for the company is shown below:
Actual output: (in units)4,000
Direct Materials:
Materials costs $30,225
Input purchased and used 3,900
Actual price per input $7.75
Direct Manufacturing Labor:
Labor costs $11,470
Labor-hours of input 1,240
Actual price per hour $9.25
Direct Marketing Labor:
Labor costs$5,880
Labor-hours of input2,100
Actual price per hour$2.80
Required:
a.What is the combined total of the flexible-budget variances?
b.What is the price variance of the direct materials?
c.What is the price variance of the direct manufacturing labor and the direct marketing labor, respectively?
d.What is the efficiency variance for direct materials?
e.What are the efficiency variances for direct manufacturing labor and direct marketing labor, respectively?
78) _____________ 79) Nicholas Company manufacturers TVs. Some of the company’s data was misplaced. Use the
following information to replace the lost data:
Analysis
Actual
Results
Flexible
Variances
Flexible
Budget
Sales-Volume
Variances
Static
Budget
Units Sold
112,500
112,500
103,125
Revenues
$42,080
$1,000 F
(A)
$1,400 U
(B)
Variable Costs
(C)
$200 U
$15,860
$2,340 F
$18,200
Fixed Costs
$8,280
$860 F
$9,140
$9,140
Operating Income
$17,740
(D)
$16,080
(E)
$15,140
Required:
:a.What are the respective flexible-budget revenues (A)?
b.What are the static-budget revenues (B)?
c.What are the actual variable costs (C)?
d.What is the total flexible-budget variance (D)?
e.What is the total sales-volume variance (E)?
f.What is the total static-budget variance?
79) _____________ 80) Whistler Table Company manufactures tables for schools. The current year operating budget is based on sales of 20,000 units at $100 per table. Operating income is anticipated to be $120,000. Budgeted variable costs are $64 per unit while fixed costs total $600,000.
Actual income for the year was $354,000 on actual sales of 21,000 units. Actual variable costs were $60 per unit and fixed costs totaled $570,000.
Required:
Prepare a variance analysis report with both flexible budget and sales-volume variances. 80) _____________ 81) Al’s Boxes manufactures corrugated boxes. The standard materials allowed for each box is 0.5 kilograms of paper, which has a standard cost of $5 per kilogram. During April 10,000 kilograms were used to manufacture 19,500 boxes. The materials costs $5.25 per kilogram.
Required:
a.Determine the price variance.
b.Determine the efficiency variance. 81) _____________ 82) Glenn’s Draperies manufactures curtains. A certain window requires the following:
Direct materials standard 10 square yards at $5 per yard
Direct manufacturing labour standard 5 hours at $10
During the second quarter the company made 1,500 curtains and used 14,000 square yards of fabric costing $68,600. Direct labour totaled 7,600 hours for $79,800.
Required:
a.Compute the direct materials price and efficiency variances for the quarter.
b.Compute the direct manufacturing labour rate and efficiency variances for the quarter. 82) _____________ 83) The following data for the Alma Company pertain to the production of 1,000 urns during August.
Direct Materials (all materials purchased were used):
Standard cost: $6.00 per pound of urn.
Total actual cost: $5,600.
Standard cost allowed for units produced was $6,000.
Materials efficiency variance was $120 unfavorable.
Direct Manufacturing Labor:
Standard cost is 2 urns per hour at $24.00 per hour.
Actual cost per hour was $24.50.
Labor efficiency variance was $336 favorable.
Required:
a.What is standard direct material amount per urn?
b.What is the direct material price variance?
c.What is the total actual cost of direct manufacturing labor?
d.What is the labor price variance for direct manufacturing labor?
83) _____________ 84) The following data for a telephone materials company pertain to the production of 450 rolls of telephone wire during June. Selected items are omitted because the costing records have been misplaced.
Direct Materials (All materials purchased were used.)
Standard cost per roll: a. kilograms at $4.00 per kilogram.
Total actual cost: b. kilograms costing $9,600.
Standard cost allowed for units produced was $9,000.
Materials price variance: c.
Materials efficiency variance was $80 unfavourable.
Direct Manufacturing Labour
Standard cost is 3 hours per roll at $8.00 per hour.
Actual cost per hour was $8.25.
Total actual cost: d.
Labour price variance: e.
Labour efficiency variance was $400 unfavourable.
Required:
Compute the missing elements in the report represented by the lettered items. 84) _____________ 85) Video Producers manufactures two types of videos: regular and CD. The regular tapes require 5 units of direct material X at a standard price of $2 per unit. The CDs require 2 units of direct material Y at a standard price of $3.
During January the company purchased 9,000 units of X for $2.10 each and 3,600 units of Y at $3.20 each. January production used 8,800 units of X and 3,400 units of Y. Outputs of finished tapes was 1,750 of each type.
Required:
Compute the variances for each material using the two different responsibility assumptions. 85) _____________ 86) Coffey Company maintains a very large direct materials inventory because of critical demands placed
upon it for rush orders from large hospitals. Item A contains hard-to-get material Y. Currently, the
standard cost of material Y is $2.00 per gram. During February, 22,000 grams were purchased for $2.10
per gram, while only 20,000 grams were used in production. There was no beginning inventory of
material Y.
Required:
a.Determine the direct materials price variance, assuming that all materials costs are the responsibility of the materials purchasing manager.
b.Determine the direct materials price variance, assuming that all materials costs are the responsibility of the production manager.
c.Discuss the issues involved in determining the price variance at the point of purchase versus the point of consumption.
