Question : SHORT ANSWER. Write the word or phrase that best completes each : 1196281

 

SHORT ANSWER.

Write the word or phrase that best completes each statement or answers the question. 73) Brown Dental Equipment uses a flexible budget for its indirect manufacturing costs. For 20×1 the company anticipated that it would produce 36,000 components with 7,000 machine hours and 14,400 employee days. The costs and cost drivers were to be as follows:

 

                   Fixed     Variable     Cost driver

Product handling$30,000$0.20per unit

Inspection8,0004.00per 100 unit batch

Utilities4002.00per 100 unit batch

Maintenance1,000 0.10per machine hour

Supplies2.50per employee day

 

During the year the company processed 40,000 units, worked 15,000 employee days, and had 8,000 machine hours. The actual costs for 20×1 were:

Actual costs

Product handling

$38,400

Inspection

10,000

Utilities

1,420

Maintenance

1,400

Supplies

36,800

Required:

 

a.Prepare an overhead static budget for 20×1 with variances.

b.Prepare an overhead flexible budget for 20×1 with variances. 73) _____________

74)

 74) _____________

75) Trilite Windows manufactures windows. The 2002 operating budget is based on production of 56,000 windows with 1.0 machine hours allowed per window. Variable manufacturing overhead is anticipated to be $896,000.

 

Actual production for 2002 was 58,000 windows using 60,000 machine hours. Actual variable costs were $15 per machine hour.

 

Required:

 

Prepare all of the commonly used variances for a variable overhead report. Do not prepare the report 75) _____________

76) Heather’s Pillow Company manufactures pillows.

The 2007 operating budget is based on production of

20,000 pillows with 0.5 machine-hour allowed per pillow.

Variable manufacturing overhead is

anticipated to be $220,000.

 

Actual production for 20X5 was 18,000 pillows using 9,500 machine-hours.

Actual variable costs were $20 per machine-hour.

 

Required:

Calculate the variable overhead spending and efficiency variances.

 

 76) _____________

77) All Clean of Alberta manufactures individual shampoos for hotel/motel clientele. The fixed manufacturing overhead costs for 2002 will total $576,000. The company uses good units finished for fixed overhead allocation and anticipates 300,000 units of production. Good units finished average 92 percent of total units produced. During January, 20,000 units were produced. Fixed overhead cost per good unit averaged $2.82 in January.

 

Required:

 

a.Determine the fixed overhead rate for 2002.

b.Determine the fixed overhead static budget variance for January.

c.Determine the fixed overhead flexible budget variance for January.

d.Determine the fixed overhead spending variance for January. 77) _____________

78) Johnston Equipment develops food processing equipment. The fixed overhead costs for 2002

total $768,000. The company uses direct labour hours for fixed overhead allocation and anticipates 480,000 hours during the year for 960,000 units. An equal number of units are budgeted for each month.

 

During April 84,000 packages were produced and $66,000 was spent on fixed overhead.

 

Required:

 

a.Determine the fixed overhead rate for 2002 based on units of input.

b.Determine the fixed overhead static budget variance for April.

c.Determine the production volume overhead variance for April. 78) _____________

79) Everjoice Company makes clocks.

The fixed overhead costs for 2007 total $720,000.

The company uses

direct labor-hours for fixed overhead allocation and anticipates 240,000 hours during the year for 480,000

units.

An equal number of units are budgeted for each month.

 

During June, 42,000 clocks were produced and $63,000 were spent on fixed overhead.

 

Required:

a. Determine the fixed overhead rate for 20X5 based on units of input.

b. Determine the fixed overhead static-budget variance for June.

c. Determine the production-volume overhead variance for June.

 

 79) _____________

80) Dog Lawnmowers controls variable manufacturing overhead costs with assembly-line hours as the denominator and fixed manufacturing overhead costs on the basis of total budgeted costs as the denominator. Each lawnmower is allowed 10 assembly-line hours and standard variable manufacturing overhead totals $650 per unit. Budgeted fixed manufacturing overhead totals $29,400 for 420 lawnmowers. During July 4,200 assembly-line hours were incurred and 400 lawnmowers were produced. Actual manufacturing overhead costs for July were $260,400 for variable expenses and $32,300 for fixed expenses.

 

Required:

 

a.Compute a 4-variance analysis for the month of July.

b.Compute a 3-variance analysis for the month of July.

c.Compute a 2-variance analysis for the month of July. 80) _____________

81) Different management levels in Snow Belt Company require varying degrees of managerial accounting information. Because of the need to comply with the managers’ requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows:

 

Budgeted output units 3,200 units

Budgeted fixed manufacturing overhead$20,000

Budgeted variable manufacturing overhead

 $5.00 per direct labour hour

Budgeted direct manufacturing labour hours

2 hours per unit

Fixed manufacturing costs incurred $26,000

Direct manufacturing labour hours used 7,200

Variable manufacturing costs incurred $35,600

Actual units manufactured 3,400

 

Required:

 

a.Compute a 4-variance analysis for the plant controller.

b.Compute a 3-variance analysis for the plant manager.

c.Compute a 2-variance analysis for the corporate controller.

d.Compute the flexible-budget variance for the manufacturing vice-president.