1) variable overhead controllable variance = 202,500 - (25,000 x 8)
=2,500 (Unfavorable)
2)
Revenue | 30,000.00 |
Variable Cost | 27,000.00 |
Increase in Net Income | 3,000.00 |
We were unable to transcribe this imageQuestion 4 Multiple Choice iClicker Question Falcon Co. produces a...
Falcon Co. produces a single product. Its normal selling price is $25 per unit. The variable costs are $16 per unit. Fixed costs are $18,500 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,690 units with a special price of $20 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling...
A. Starling Co. is considering disposing of a machine with a book value of $23,600 and estimated remaining life of five years. The old machine can be sold for $5,600. A new high-speed machine can be purchased at a cost of $68,700. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $23,500 to $19,500 if the new machine is purchased. The differential effect...
We were unable to transcribe this imageWaterways is thinking of mass-producing one of its special-order sprinklers. To do so would increase variable costs for all sprinklers by an average of $0.70 per unit. The company also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit, waterways currently sells 496,000 sprinkler units at an average selling price of $28.80. The manufacturing costs are $8,039,000 variable and...
Rutro Corp. produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 60,000 units per month is as follows: Direct material $74.00 Direct labor 20.00 Variable manufacturing overhead 6.00 Fixed manufacturing overhead 21.00 Variable selling and administrative expense 8.00 Fixed selling and administrative expense 19.00 Total $148.00 The normal selling price of the product is $173.00 per unit. An order has been received from an overseas customer...
Situation Two Rutro Corp. produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 60,000 units per month is as follows: Direct material $74.00 Direct labor 20.00 Variable manufacturing overhead 6.00 21.00 8.00 Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense Total 19.00 $148.00 The normal selling price of the product is $173.00 per unit. An order has been received from an...
Your Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 30,000 units per month is as follows: Direct materials $20.40 Direct labor $8.70 Variable manufacturing overhead. $1.20 Fixed manufacturing overhead $10.60 Variable selling & administrative costs $2.60 Fixed selling & administrative costs. $5.90 The normal selling price of the product is $51.10 per unit. Current demand is 25,000 units. An order has been received from...
Question 8 refers to the following: Wintertime Company produces the handles which are used in the production of their snow shovels. Wintertime’s costs to produce 80,000 handles annually are as follows: Direct materials $25,000 Direct labor 42,000 Variable overhead 28,000 Fixed overhead 65,000 TOTAL $160,000 An outside supplier has offered to sell Wintertime similar handles for $1.50 per handle. If the handles are purchased from the outside supplier, $50,000 of annual fixed factory overhead...
Multiple Choice Select the best answer to each question. Space is provided for computations after the quantitative questions. 1. In regard to supply and demand, de- mand is affected by: a customers, competitors, and costs. b, customers and competitors. c. customers and costs. d. competitors and costs. 2. (CPA) Relay Corporation manufactures batons. Relay can manufacture 300,000 batons a year at variable costs of $750,000 and fixed costs of $450,000. Fixed costs will remain the same be- tween 200,000 and...
Exercise 12-9 Special Order Decision [LO12-4] Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 85,200 units per year is: Direct materials $ 2.40 Direct labor $ 4.00 Variable manufacturing overhead $ 0.60 Fixed manufacturing overhead $ 4.95 Variable selling and administrative expenses $ 1.80 Fixed selling and administrative expenses $ 3.00 The normal selling price is $22.00 per unit. The company’s capacity is...
The Bytown Company produces one product. The cost of producing and selling a single unit of this product at the company's normal activity level of 70,000 units per month is as follows: Direct Materials $29.60 Direct Labour $ 5.80 Variable Manufacturing Overhead $ 2.50 Fixed Manufacturing Overhead $17.20 Variable Selling & Administrative Expense $ 1.80 Fixed Selling & Administrative Expense $ 6.70 The normal selling price of the product is $72.90 per unit. An order...