15..
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price | $ 149 |
---|---|
Units in beginning inventory | 0 |
Units produced | 2,770 |
Units sold | 2,520 |
Units in ending inventory | 250 |
Variable costs per unit: | |
Direct materials | $ 51 |
Direct labor | $ 20 |
Variable manufacturing overhead | $ 10 |
Variable selling and administrative expense | $ 12 |
Fixed costs: | |
Fixed manufacturing overhead | $96,950 |
Fixed selling and administrative expense | $35,280 |
The total gross margin for the month under absorption costing is:
22. Rhed Kennel uses tenant-days as its measure of activity; an
animal housed in the kennel for one day is counted as one
tenant-day. During December, the kennel budgeted for 4,550
tenant-days, but its actual level of activity was 4,500
tenant-days. The kennel has provided the following data concerning
the formulas used in its budgeting and its actual results for
December:
Data used in budgeting:
Fixed element per month | Variable element per tenant-day | |
---|---|---|
Revenue | $ 0 | $ 35.60 |
Wages and salaries | $ 3,900 | $ 9.40 |
Food and supplies | 2,250 | 14.60 |
Facility expenses | 9,900 | 6.10 |
Administrative expenses | 7,900 | 0.70 |
Total expenses | $ 23,950 | $ 30.80 |
Actual results for December:
Revenue | $ 159,355 |
---|---|
Wages and salaries | $ 46,485 |
Food and supplies | $ 66,835 |
Facility expenses | $ 37,535 |
Administrative expenses | $ 9,865 |
The activity variance for administrative expenses in December would be closest to:
30.
Courington Detailing's cost formula for its materials and supplies is $1,870 per month plus $6 per vehicle. For the month of August, the company planned for activity of 82 vehicles, but the actual level of activity was 47 vehicles. The actual materials and supplies for the month was $2,250.
The spending variance for materials and supplies in August would be closest to:
15)
The total gross margin for the month under absorption costing is: $83,160
Working
Sales | $ 375,480.00 |
Less: Cost of goods sold | $ 292320.00 |
Gross Margin | $ 83,160.00 |
.
Material cost per unit | $ 51.00 |
Direct labor per unit | $ 20.00 |
Variable manufacturing Overheads per unit | $ 10.00 |
Fixed Manufacturing Overheads per unit (96950/2770) | $ 35.00 |
Total cost per unit | $ 116.00 |
Multiplied by Units sold | 2520 |
Cost of goods sold | $ 292,320.00 |
22)
Budgted administrative expenses=$7900+(0.7*"4550)=$11085
Actual administraitve expenses=$7900+(0.7*4500)=$11050.
Hence activity variance=($11050-$11085)=$35 F(C)(Since actual results are lower than the budgeted expenses;the variance is favourable).(The fixed expenses do not change with change in units].
30)
Materials and supplies in Planning budget | 2362 | =1870+(82*6) |
Less: Materials and supplies in Flexible budget | 2152 | =1870+(47*6) |
Activity variance for materials and supplies | 210 | F |
Option A $210 F is correct |
15.. A manufacturing company that produces a single product has provided the following data concerning its...
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