Tangerine Inc. produces plastic grocery bags. Tangerine has developed a static budget for the month of...
Tangerine Inc. produces plastic grocery bags. Tangerine has developed a static budget for the month of July based on 9,000 direct labor hours. During the quarter, the actual activity was 10,000 direct labor hours. Data for July are summarized as follows: Static budget (9,000 hours) Actual costs (10,000 hours) Direct materials cost $106,000 $128,000 Power 50,000 57,000 Salary of plant supervisor 9,000 9,000 Total $165,000 $194,000 Comparing the static budget to the actual costs, we can conclude that: a. the plant manager should be dismissed. b. power variance is unfavorable. c. direct materials variance is favorable. d. the plant manager was clearly not efficient. e. None of these choices are correct.
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Tangerine Inc. produces plastic grocery bags. Tangerine has
developed a static budget for the month of...
Katie's Creations, Inc. produces leather purses. Katie's controller has developed a static budget for the third...
Katie's Creations, Inc. produces leather purses. Katie's controller has developed a static budget for the third quarter, based on 20,000 direct labor hours. During the third quarter of 2019, the actual activity was 22,000 direct labor hours. Data for the third quarter are summarized as follows: Actual costs (22,000 hours) Static budget (20,000 hours) $ 80,000 160,000 Direct materials cost $ 87,000 174,000 Direct labor cost Building rental 48.000 50.000 Total $288,000 $311,000 What is the Katie's flexible budget variance...
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Static Budget versus Flexible Budget The production supervisor of the Machining Department for Hagerstown Company agreed...
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ucts Inc. prepared the following factory overhead cost budget for the Trim Department for July of...
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Static Plexible Volume Purchasing manager Favorable Unfavorable Debit Credit Fixed overhead budget Fixed overhead volune Spending...
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Katie's Creations, Inc. produces leather purses. Katie's controller has developed a static budget for the third quarter, based on 20,000 direct labor hours. During the third quarter of 2019, the actual activity was 22,000 direct labor hours. Data for the third quarter are summarized as follows: Actual costs (22,000 hours) Static budget (20,000 hours) $ 80,000 160,000 Direct materials cost $ 87,000 174,000 Direct labor cost Building rental 48.000 50.000 Total $288,000 $311,000 What is the Katie's flexible budget variance...
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ucts Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 10,000 hours for production: 7.300 16,000 Variable overhead cost: Indirect factory labor $28.000 Power and light Indirect materials Total variable overhead cost $ 51,300 Fored overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Totale overhead cost 82.600 Total factory overhead cost $13.900 Tannin has available 14,000 hours of monthly productive...
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