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.

  

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

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.

Read more

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.

Read more

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.

Read more

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.

Read more

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.

Read more