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Question : 142.Scotch Brand Products produces packaging tape and has determined the : 1302883

Economics

 

 

142.Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape:

 

Material (3.50 ounces at $1.30 per ounce)              $4.55

Labor (0.30 hour at $12.00 per hour)              3.60

Overhead                 2.20

Total              $10.35

 

At the start of 2014, Scotch Brand planned to produce 80,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $56,000 and the variable overhead costs are budgeted at $1.50 per case. The following information summarizes the results for 2014:

 

                  Actual production, 75,000 cases

                  Purchased 275,000 ounces of material at a total cost of $343,750

                  Used 266,250 ounces of material in production

                  Employees worked 22,000 hours, total labor cost $275,000

                  Actual overhead incurred, $175,000

 

How much is the controllable overhead variance for 2014?

A.$3,000 unfavorable

B.$10,000 unfavorable

C.$6,500 unfavorable

D.$3,500 unfavorable

 

143.Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape:

 

Material (3.50 ounces at $1.30 per ounce)              $4.55

Labor (0.30 hour at $12.00 per hour)              3.60

Overhead                 2.20

Total              $10.35

 

At the start of 2014, Scotch Brand planned to produce 80,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $56,000 and the variable overhead costs are budgeted at $1.50 per case. The following information summarizes the results for 2014:

 

                  Actual production, 75,000 cases

                  Purchased 275,000 ounces of material at a total cost of $343,750

                  Used 266,250 ounces of material in production

                  Employees worked 22,000 hours, total labor cost $275,000

                  Actual overhead incurred, $175,000

 

How much is the overhead volume variance for 2014?

A.$6,500 unfavorable

B.$3,500 unfavorable

C.$10,000 unfavorable

D.$3,000 unfavorable

 

144.Haley Fans manufactures and distributes circulators. The standard and actual costs for the manufacture of circulators follows:

 

Standard CostsActual Costs

Variable cost, $24 per unitTotal variable cost, $12,300

Fixed cost, $40 per unitTotal fixed cost, $19,250

 

Budgeted factory overhead was $32,000. Overhead applied is based on the number of circulator units produced. The company estimated that 500 circulators would be produced, however only 480 were produced. How much is Haley’s overhead volume variance for 2014?

A.$800 unfavorable

B.$830 favorable

C.$450 favorable

D.$50 unfavorable

 

145.Eminem, Inc. manufactures music CDs. At the start of 2014, Eminem planned to produce 108,000 CDs for which the standard cost for each CD is:

 

Plastic (0.25 pounds at $6.00 per pound)$1.50

Labor (0.10 hour at $12.00 per hour)1.20

Overhead ($0.80 fixed and $0.60 variable)1.40

Total$4.10

Overhead is allocated based on the number of units produced. Eminem isolates material purchase variances at the point of purchase. The following information summarizes Eminem’s results for 2014:

 

Actual production110,000 CDs

Actual variable overhead$65,000

Actual fixed overhead$83,000

 

How much is the budgeted fixed overhead for 2014?

A.$86,400

B.$83,000

C.$88,000

D.$66,400

 

146.Eminem, Inc. manufactures music CDs. At the start of 2014, Eminem planned to produce 108,000 CDs for which the standard cost for each CD is:

 

Plastic (0.25 pounds at $6.00 per pound)$1.50

Labor (0.10 hour at $12.00 per hour)1.20

Overhead ($0.80 fixed and $0.60 variable)1.40

Total$4.10

Overhead is allocated based on the number of units produced. Eminem isolates material purchase variances at the point of purchase. The following information summarizes Eminem’s results for 2014:

 

Actual production110,000 CDs

Actual variable overhead$65,000

Actual fixed overhead$83,000

 

How much is the controllable overhead variance for 2014?

A.$4,400 favorable

B.$1,600 favorable

C.$6,000 favorable

D.$5,000 favorable

147.Eminem, Inc. manufactures music CDs. At the start of 2014, Eminem planned to produce 108,000 CDs for which the standard cost for each CD is:

 

Plastic (0.25 pounds at $6.00 per pound)$1.50

Labor (0.10 hour at $12.00 per hour)1.20

Overhead ($0.80 fixed and $0.60 variable)1.40

Total$4.10

Overhead is allocated based on the number of units produced. Eminem isolates material purchase variances at the point of purchase. The following information summarizes Eminem’s results for 2014:

 

Actual production110,000 CDs

Actual variable overhead$65,000

Actual fixed overhead$83,000

 

How much is the overhead volume variance for 2014?

A.$4,400 favorable

B.$1,600 favorable

C.$1,200 unfavorable

D.$3,200 favorable

 

148.Eminem, Inc. manufactures music CDs. At the start of 2014, Eminem planned to produce 108,000 CDs for which the standard cost for each CD is:

 

Plastic (0.25 pounds at $6.00 per pound)$1.50

Labor (0.10 hour at $12.00 per hour)1.20

Overhead ($0.80 fixed and $0.60 variable)1.40

Total$4.10

Overhead is allocated based on the number of units produced. Eminem isolates material purchase variances at the point of purchase. The following information summarizes Eminem’s results for 2014:

 

Actual production110,000 CDs

Actual variable overhead$65,000

Actual fixed overhead$83,000

 

How much is under or overapplied overhead for 2014?

A.$6,000 overapplied

B.$4,400 overapplied

C.$1,600 overapplied

D.$3,200 underapplied

 

149.Rumington Popcorn uses a standard cost system and applies overhead on a per unit basis. The company estimated that 30,000 units would be produced in 2014 and uses this quantity to establish its standard overhead cost per unit. The cost formula for overhead costs used to develop the standard overhead cost per unit was:

Overhead = $120,000 + $6 per unit

During the year, actual overhead cost was $340,000. Actual units produced were 32,000. How much is the controllable overhead variance for 2014?

A.$20,000 favorable

B.$20,000 unfavorable

C.$28,000 favorable

D.$28,000 unfavorable

 

150.Rumington Popcorn uses a standard cost system and applies overhead on a per unit basis. The company estimated that 30,000 units would be produced in 2014 and uses this quantity to establish its standard overhead cost per unit. The cost formula for overhead costs used to develop the standard overhead cost per unit was:

Overhead = $120,000 + $6 per unit

During the year, actual overhead cost was $340,000. Actual units produced were 32,000. How much is the amount of under or over applied overhead for 2014?

A.$20,000 overapplied

B.$20,000 underapplied

C.$28,000 overapplied

D.$28,000 underapplied

 

151.Rumington Popcorn uses a standard cost system and applies overhead on a per unit basis. The company estimated that 30,000 units would be produced in 2014 and uses this quantity to establish its standard overhead cost per unit. The cost formula for overhead costs used to develop the standard overhead cost per unit was:

Overhead = $120,000 + $6 per unit

During the year, actual overhead cost was $340,000. Actual units produced were 32,000. How much is the overhead volume variance for 2014?

A.$2,000 favorable

B.$28,000 unfavorable

C.$8,000 favorable

D.$28,000 favorable

 

 

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21) What is the cost effect of the growth component for direct materials?

A) $135,000 U

B) $450,000 F

C) $450,000 U

D) $135,000 F

22) What is the cost effect of the growth component for conversion costs?

A) $12,500 U

B) $0

C) $90,000 U

D) $90,000 F

 

23) Overall, was Crynton's strategy successful in 2015?

A) Yes, because total revenues increased

B) No, because operating income decreased

C) No, because direct materials usage per unit increased

D) No, because direct material cost per unit decreased

 

Answer the following questions using the information below:

 

Strategic Analysis of Profitability of Ransham Company:

 

 

Income

Statement

Amounts

in 2014

Revenue and

Cost Effects

of Growth

Component

in 2015

Revenue and

Cost Effects of

Price-Recovery

Component

in 2015

Cost Effect of

Productivity

Component

in 2015

Income

Statement

Amounts

in 2015

Revenues ($)

34,000

10,000 F

1,000 U

(b)

(e)

Costs

23,500

(a)

500 U

(c)

26,100

Operating income

10,500

5,500 F

1,500 U

2,400 F

(d)

 

24) What is the cost effect of the growth component (a)?

A) $15,500 F

B) $4,500 U

C) $15,500 U

D) $4,500 F

25) What is the revenue effect of the productivity component (b)?

A) $0

B) $2,400 U

C) $900 F

D) $2,400 F

 

26) What is the cost effect of the productivity component (c)?

A) $0

B) $1,200 U

C) $900 F

D) $2,400 F

Or

Cost effect of the productivity component =  $10,500 + $4,500  U +  $500  U - $16,900 = $2,400

 

27) What is the operating income amount for 2015 (d)?

A) $43,000

B) $25,000

C) $16,900

D) $46,000

 

28) What is the revenue amount for 2015 (e)?

A) $9,000

B) $25,000

C) $43,000

D) $16,900

Answer the following questions using the information below:

 

Following a strategy of product differentiation, Arseniq Company makes a high-end Appliance, XT15. Arseniq presents the following data for the years 2014 and 2015:

 

20142015

Units of XT15 produced and sold50,00052,500

Selling price$500$550

Direct materials (square feet)150,000153,750

Direct materials costs per square foot$50$55

Manufacturing capacity in units of XT1562,50062,500

Total conversion costs$6,250,000$6,875,000

Conversion costs per unit of capacity$100$110

Selling and customer-service capacity (customers)150150

Total selling and customer-service costs$2,250,000$2,343,750

Selling and customer-service capacity cost per customer$15,000$15,625

 

Arseniq produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Arseniq had 140 customers in 2014 and 145 customers in 2015.

 

29) What is operating income for 2014?

A) $9,000,000

B) $11,200,000

C) $11,440,000

D) $9,207,000

 

30) What is operating income in 2015?

A) $11,440,000

B) $11,200,000

C) $9,000,000

D) $9,207,000

 

 

default image
July 1, 2023
    

 

21) What is the cost effect of the growth component for direct materials?

A) $135,000 U

B) $450,000 F

C) $450,000 U

D) $135,000 F

22) What is the cost effect of the growth component for conversion costs?

A) $12,500 U

B) $0

C) $90,000 U

D) $90,000 F

 

23) Overall, was Crynton's strategy successful in 2015?

A) Yes, because total revenues increased

B) No, because operating income decreased

C) No, because direct materials usage per unit increased

D) No, because direct material cost per unit decreased

 

Answer the following questions using the information below:

 

Strategic Analysis of Profitability of Ransham Company:

 

 

Income

Statement

Amounts

in 2014

Revenue and

Cost Effects

of Growth

Component

in 2015

Revenue and

Cost Effects of

Price-Recovery

Component

in 2015

Cost Effect of

Productivity

Component

in 2015

Income

Statement

Amounts

in 2015

Revenues ($)

34,000

10,000 F

1,000 U

(b)

(e)

Costs

23,500

(a)

500 U

(c)

26,100

Operating income

10,500

5,500 F

1,500 U

2,400 F

(d)

 

24) What is the cost effect of the growth component (a)?

A) $15,500 F

B) $4,500 U

C) $15,500 U

D) $4,500 F

25) What is the revenue effect of the productivity component (b)?

A) $0

B) $2,400 U

C) $900 F

D) $2,400 F

 

26) What is the cost effect of the productivity component (c)?

A) $0

B) $1,200 U

C) $900 F

D) $2,400 F

Or

Cost effect of the productivity component =  $10,500 + $4,500  U +  $500  U - $16,900 = $2,400

 

27) What is the operating income amount for 2015 (d)?

A) $43,000

B) $25,000

C) $16,900

D) $46,000

 

28) What is the revenue amount for 2015 (e)?

A) $9,000

B) $25,000

C) $43,000

D) $16,900

Answer the following questions using the information below:

 

Following a strategy of product differentiation, Arseniq Company makes a high-end Appliance, XT15. Arseniq presents the following data for the years 2014 and 2015:

 

20142015

Units of XT15 produced and sold50,00052,500

Selling price$500$550

Direct materials (square feet)150,000153,750

Direct materials costs per square foot$50$55

Manufacturing capacity in units of XT1562,50062,500

Total conversion costs$6,250,000$6,875,000

Conversion costs per unit of capacity$100$110

Selling and customer-service capacity (customers)150150

Total selling and customer-service costs$2,250,000$2,343,750

Selling and customer-service capacity cost per customer$15,000$15,625

 

Arseniq produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Arseniq had 140 customers in 2014 and 145 customers in 2015.

 

29) What is operating income for 2014?

A) $9,000,000

B) $11,200,000

C) $11,440,000

D) $9,207,000

 

30) What is operating income in 2015?

A) $11,440,000

B) $11,200,000

C) $9,000,000

D) $9,207,000

 

 

default image
July 1, 2023
    

 

21) What is the cost effect of the growth component for direct materials?

A) $135,000 U

B) $450,000 F

C) $450,000 U

D) $135,000 F

22) What is the cost effect of the growth component for conversion costs?

A) $12,500 U

B) $0

C) $90,000 U

D) $90,000 F

 

23) Overall, was Crynton's strategy successful in 2015?

A) Yes, because total revenues increased

B) No, because operating income decreased

C) No, because direct materials usage per unit increased

D) No, because direct material cost per unit decreased

 

Answer the following questions using the information below:

 

Strategic Analysis of Profitability of Ransham Company:

 

 

Income

Statement

Amounts

in 2014

Revenue and

Cost Effects

of Growth

Component

in 2015

Revenue and

Cost Effects of

Price-Recovery

Component

in 2015

Cost Effect of

Productivity

Component

in 2015

Income

Statement

Amounts

in 2015

Revenues ($)

34,000

10,000 F

1,000 U

(b)

(e)

Costs

23,500

(a)

500 U

(c)

26,100

Operating income

10,500

5,500 F

1,500 U

2,400 F

(d)

 

24) What is the cost effect of the growth component (a)?

A) $15,500 F

B) $4,500 U

C) $15,500 U

D) $4,500 F

25) What is the revenue effect of the productivity component (b)?

A) $0

B) $2,400 U

C) $900 F

D) $2,400 F

 

26) What is the cost effect of the productivity component (c)?

A) $0

B) $1,200 U

C) $900 F

D) $2,400 F

Or

Cost effect of the productivity component =  $10,500 + $4,500  U +  $500  U - $16,900 = $2,400

 

27) What is the operating income amount for 2015 (d)?

A) $43,000

B) $25,000

C) $16,900

D) $46,000

 

28) What is the revenue amount for 2015 (e)?

A) $9,000

B) $25,000

C) $43,000

D) $16,900

Answer the following questions using the information below:

 

Following a strategy of product differentiation, Arseniq Company makes a high-end Appliance, XT15. Arseniq presents the following data for the years 2014 and 2015:

 

20142015

Units of XT15 produced and sold50,00052,500

Selling price$500$550

Direct materials (square feet)150,000153,750

Direct materials costs per square foot$50$55

Manufacturing capacity in units of XT1562,50062,500

Total conversion costs$6,250,000$6,875,000

Conversion costs per unit of capacity$100$110

Selling and customer-service capacity (customers)150150

Total selling and customer-service costs$2,250,000$2,343,750

Selling and customer-service capacity cost per customer$15,000$15,625

 

Arseniq produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Arseniq had 140 customers in 2014 and 145 customers in 2015.

 

29) What is operating income for 2014?

A) $9,000,000

B) $11,200,000

C) $11,440,000

D) $9,207,000

 

30) What is operating income in 2015?

A) $11,440,000

B) $11,200,000

C) $9,000,000

D) $9,207,000

 

 

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Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

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Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

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Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

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Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

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Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

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