Homework Answers
a) Sales volume variance = (24000-25600)*68 = 108800 F
b) Flexible budget variance = (68-50)*25600 = 460800 U
c) No, Decision is not profitable
Add Answer to:
Vernon Educational Services had budgeted its training service charge at $68 per hour. The company planned...
Exercise 8-7A Evaluating a decision to increase sales volume by lowering sales price LO 8-3, 8-4...
Exercise 8-7A Evaluating a decision to increase sales volume by lowering sales price LO 8-3, 8-4 Finch Educational Services had budgeted its training service charge at $69 per hour. The company planned to provide 39,000 hours of training services during 2019. By lowering the service charge to $54 per hour, the company was able to increase the actual number of hours to 40,700. Required a. Determine the sales volume variance and indicate whether it is favorable (F) or unfavorable (U)....
Exercise 15-11 Evaluating a decision to increase sales volume by lowering sales price LO 15-3, 15-4,...
Exercise 15-11 Evaluating a decision to increase sales volume by lowering sales price LO 15-3, 15-4, 15-5 Benson Educational Services had budgeted its training service charge at $70 per hour. The company planned to provide 38,000 hours of training services during 2019. By lowering the service charge to $58 per hour, the company was able to increase the actual number of hours to 39,600. Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable...
Vernon Fruit Drink Company planned to make 209,000 containers of apple juice. It expected to use...
Vernon Fruit Drink Company planned to make 209,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 418,000 cups of frozen concentrate. The standard price of one cup of apple concentrate is $0.25. Vernon actually paid $123,627 to purchase 426,300 cups of concentrate, which was used to make 210,000 containers of apple juice. Required: Compute the actual price per cup of concentrate. (Round your answer to 2...
Cheney Company established a predetermined variable overhead cost rate at $21.00 per direct labor hour. The...
Cheney Company established a predetermined variable overhead cost rate at $21.00 per direct labor hour. The actual variable overhead cost rate was $19.20 per hour. The planned level of labor activity was 76,000 hours of labor. The company actually used 80,000 hours of labor. Required Determine the total flexible budget variable overhead cost variance and indicate the effect of the variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
The following data were drawn from the records of Solomon Corporation. Planned volume for year (static...
The following data were drawn from the records of Solomon Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs 4,100 units 4.00 pounds @ $1.60 per pound 2.10 hours @ $5.00 per hour $ 18,450 4,500 units 3.60 pounds @ $2.00...
Adger Corporation is a service company that measures its output based on the number of customers...
Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Fixed Element per Month Variable Element per Customer Served Actual Total for May Revenue $ 5,700 $ 209,500 Employee salaries and wages $ 64,000 $ 1,100 $ 106,400 Travel expenses $ 560 $ 19,000 Other expenses $ 43,000...
5. If Preble had purchased 182,000 pounds of materials at $7.40 per pound and used 160,000...
5. If Preble had purchased 182,000 pounds of materials at $7.40 per pound and used 160,000 pounds in production, what would be the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.) 6. If Preble had purchased 182,000 pounds of materials at $7.40 per pound and used 160,000 pounds in production, what would be the materials...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Vernon Publications established...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Vernon Publications established the following standard price and costs for a hardcover picture book that the company produces $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing Overhead Selling general, and administrative 36.60 8.50 3.80 5.50 6.40 $129,000 50.000 Vernon planned to make and sell 31.000 copies of the book. Required: a.-d. Prepare...
The following data were drawn from the records of Perez Corporation. Planned volume for year (static budget) Standard d...
The following data were drawn from the records of Perez Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs 3,400 units 3.50 pounds @ $1.50 per pound 2.30 hours @ $3.30 per hour $14,620 3,900 units 3.10 pounds @ $2.00 per...
Exercise 8-7A Evaluating a decision to increase sales volume by lowering sales price LO 8-3, 8-4 Finch Educational Services had budgeted its training service charge at $69 per hour. The company planned to provide 39,000 hours of training services during 2019. By lowering the service charge to $54 per hour, the company was able to increase the actual number of hours to 40,700. Required a. Determine the sales volume variance and indicate whether it is favorable (F) or unfavorable (U)....
Exercise 15-11 Evaluating a decision to increase sales volume by lowering sales price LO 15-3, 15-4, 15-5 Benson Educational Services had budgeted its training service charge at $70 per hour. The company planned to provide 38,000 hours of training services during 2019. By lowering the service charge to $58 per hour, the company was able to increase the actual number of hours to 39,600. Required a. Determine the sales volume variance, and indicate whether it is favorable (F) or unfavorable...
The following data were drawn from the records of Solomon Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs 4,100 units 4.00 pounds @ $1.60 per pound 2.10 hours @ $5.00 per hour $ 18,450 4,500 units 3.60 pounds @ $2.00...
5. If Preble had purchased 182,000 pounds of materials at $7.40 per pound and used 160,000 pounds in production, what would be the materials price variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.) 6. If Preble had purchased 182,000 pounds of materials at $7.40 per pound and used 160,000 pounds in production, what would be the materials...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Vernon Publications established the following standard price and costs for a hardcover picture book that the company produces $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing Overhead Selling general, and administrative 36.60 8.50 3.80 5.50 6.40 $129,000 50.000 Vernon planned to make and sell 31.000 copies of the book. Required: a.-d. Prepare...
The following data were drawn from the records of Perez Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs 3,400 units 3.50 pounds @ $1.50 per pound 2.30 hours @ $3.30 per hour $14,620 3,900 units 3.10 pounds @ $2.00 per...
Most questions answered within 3 hours.
-
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 34 minutes ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 57 minutes ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 1 hour ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 1 hour ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 1 hour ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 2 hours ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 5 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 6 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 6 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 6 hours ago -
When a metal rod is heated, not only its resistance but also its
length and crossâsectional...
asked 6 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 6 hours ago