33:010:272 Lecture Notes - Lecture 6: Indian Railways, Finished Good, Adjustable-Rate Mortgage

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fuchsiagnat257

31 Aug 2016

School

Rutgers University

Department

Accounting

Course

33:010:272

Professor

S A V I T A S A H A Y

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Document Summary

Budgeted ending inventory + budgeted sales for month - budgeted beginning inventory = budgeted purchases for month. Dm bi + purchases - dm ei = dm used in. Cash disbursements for the month in cash budget as cash disbursements. The difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased. The difference between the actual hourly labor rate and the standard rate, multiplied by the number of hours worked during the period. The labor efficiency variance is the difference between actual direct labor hours worked, and the standard quantity of hours allowed for actual production, times the direct labor wage rate per hour. This variance tells managers whether more or less was spent on variable overhead than they expected would be spent for the hours worked. It is calculated as follows: ah (ar .

Related Questions

1. Merchant Co. expects to sell 10,000 units at $120 each. Eachunit is expected to require 2lbs. of material @ $10/lb. and 3direct labor hours @ $5/DLH. The overhead rate is estimated to be$15/DLH. The beginning inventories are: DM 1,000 lbs. and FinishedGoods 2,000 units. The budgeted ending inventories are: DM 2,000lbs. and Finished Goods 1,000 units.

What is Merchant Co's budgeted sales (in $)?

What is Merchant Co's budgeted production (in units)?

Assuming a production of 9,500 units, what is the budgetedmaterials purchase (in lbs.& $)?

Based on your answer to (2), what is the budgeted cost perunit?

Based on your answer to (2), what is the budgeted cost of goodssold?

Based on your answer to (2), what is the budgeted cost for DL& FOH respectively?

Problem 2

Country Heather manufactures flower pots. It expects to sell26,000 pots in 2014. The company had enough beginning inventory ofdirect materials to produce 8,000 pots and wants to maintain anending direct materials inventory to produce 12,000 pots. Beginninginventory of finished pots totaled 2,000 pots and the company had adesired ending inventory of finished pots of 3,000 pots. The potssell for $12 each. Direct material cost is $2.50 per pot, directlabor cost is $1.35 per pot, and factory overhead is 85Â¢ perpot.

Determine the budgeted sales for 2014 (in $)

Determine the budgeted production for 2014 (in pots)

Determine the budgeted cost of goods sold for 2014 (in $)

Determine the budgeted cost for DM, DL, & FOH for 2014.

Problem 3

Maddox Co's forecast of sales is as follows: October $40,000;November $80,000; December $120,000. Sales are 70% cash and 30%credit in any month. Credit sales are collected in full in thefollowing month.

Determine the budgeted cash receipts for each of the 3months?

Calculate the balance of Accounts Receivable on October 31 &November 30?

Standard Costs: Budgeted units of production - 16,000 (80% ofcapacity) Standard labor hours per unit -4

Standard labor rate $26 per hour Standard material per unit - 8lbs.

Standard material cost - $12 per lb.

Budgeted fixed overhead $ 640,000

Standard variable overhead rate - $ 15 per labor hour.

Fixed overhead rate is based on budgeted labor hours at 80%capacity.

Actual Cost: Actual production - 16,500 units

Actual fixed overhead - 640,000

Actual variable overhead - $ 1,000,000

Actual labor - 65,000 hours,

total labor costs $ 1,700,000

Actual material purchased and used - 130,000 lbs,total materialcost $ 1,600,000

Actual variable overhead - $ 1,000,000

Determine: (a) the quantity variance, price variance, and totaldirect materials cost variance

(b) The time variance, rate variance, and total direct laborcost variance;

azurebeetle48

Tharaldson Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost per Unit
Direct material	6.6 ounces	$ 5.00 per ounce	$33.00
Direct labor	0.8 hours	$ 10.00 per hour	$8.00
Variable overhead	0.8 hours	$ 5.00 per hour	$4.00

The company reported the following results concerning this product in June.

Originally budgeted output	2,000 units
Actual output	2,500 units
Raw materials used in production	19,000 ounces
Purchases of raw materials	21,500 ounces
Actual direct labor-hours	4,900 hours
Actual cost of raw materials purchases	$40,500
Actual direct labor cost	$12,000
Actual variable overhead cost	$3,000

The company applies variable overhead on the basis of direct labor hours. The direct material purchases variance is computed when the materials are purchased .

The materials quantity variance for June is:

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33:010:272 Lecture Notes - Lecture 6: Indian Railways, Finished Good, Adjustable-Rate Mortgage

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