acct 212 homework 7 chapter23 acct 212 homework 7 chapter23

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acct 212 homework 7  chapter23

acct 212 homework 7 chapter23

acct 212 homework 7 chapter23

1.

award:
5 out of
5.00 points

Exercise 24-1 Preparation of flexible budgets L.O. P1

Mesa
Company’s fixed budget for the first quarter of calendar year 2011 reveals
the following.

Sales
(12,500 units)

$

2,637,500

Cost
of goods sold

Direct
materials

$

311,125

Direct
labor

526,000

Production
supplies

332,625

Plant
manager salary

111,125

1,280,875





Gross
profit

1,356,625

Selling
expenses

Sales
commissions

94,000

Packaging

177,625

Advertising

100,000

371,625



Administrative
expenses

Administrative
salaries

161,125

Depreciation—office
equip.

131,125

Insurance

101,125

Office
rent

111,125

504,500





Income
from operations

$

480,500






Prepare
flexible budgets that show variable costs per unit, fixed costs, and three
different flexible budgets for sales volumes of 10,500, 12,500, and 15,500
units. (Input all amounts as positive values.
Round your “Variable amount per unit” to 2 decimal places. Omit
the “$” sign in your response.)

2.

award:
3 out of
3.00 points

Exercise 24-3 Preparation of a flexible budget performance report L.O.
P1

Cimarron
Company’s fixed budget performance report for July follows. The $653,000
budgeted expenses include $613,820 variable expenses and $39,180 fixed
expenses. Actual expenses include $51,180 fixed expenses.

Fixed Budget

Actual Results

Variances

Sales
(in units)

8,700

11,100









Sales
(in dollars)

$

870,000

$

1,110,000

$

240,000

F

Total
expenses

653,000

783,600

130,600

U







Income
from operations

$

217,000

$

326,400

$

109,400

F














Prepare
a flexible budget performance report showing any variances between budgeted
results and actual results. List fixed and variable expenses separately. (Input all amounts as a positive value. Indicate
the effect of each variance by selecting “F” for favorable,
“U” for unfavorable, and “None” for no effect (i.e., zero
variance). Leave no cells blank – be certain to enter “0” wherever
required. Do not round your intermediate calculations and round your final
answers to the nearest dollar amount. Omit the “$” sign in your
response.)

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Worksheet

Difficulty: Medium

Exercise 24-3 Preparation of a flexible budget performance report L.O.
P1

Learning Objective: 24-P1 Prepare a flexible budget and interpret a
flexible budget performance report.

3.

award:
3 out of
3.00 points

Exercise 24-4 Preparation of a flexible budget performance report L.O.
P1

Daytec
Company’s fixed budget performance report for June follows. The $594,000
budgeted expenses include $450,000 variable expenses and $144,000 fixed
expenses. Actual expenses include $134,000 fixed expenses.

Fixed Budget

Actual Results

Variances

Sales
(in units)

8,100

7,000









Sales
(in dollars)

$

648,000

$

623,000

$

25,000

U

Total
expenses

594,000

563,000

31,000

F







Income
from operations

$

54,000

$

60,000

$

6,000

F














Prepare
a flexible budget performance report that showing any variances between
budgeted and actual results. List fixed and variable expenses separately. (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. Do not round intermediate calculations and round final
answers to the nearest dollar amount. Omit the “$” sign in
your response.)

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Worksheet

Difficulty: Medium

Exercise 24-4 Preparation of a flexible budget performance report L.O.
P1

Learning Objective: 24-P1 Prepare a flexible budget and interpret a
flexible budget performance report.

4.

award:
2 out of
2.00 points

Exercise 24-5 Computation and interpretation of labor variances L.O. P2

After
evaluating Zero Company’s manufacturing process, management decides to
establish standards of 1.5 hours of direct labor per unit of product and $21
per hour for the labor rate. During October, the company uses 5,450 hours of
direct labor at a $119,900 total cost to produce 3,700 units of product. In
November, the company uses 5,300 hours of direct labor at a $113,950 total
cost to produce 3,800 units of product.

(1)

Compute
the rate variance, the efficiency variance, and the total direct labor cost
variance for each of these two months. (Input
all amounts as a positive value.
Indicate
the effect of each variance by selecting “F” for favorable,
“U” for unfavorable, and “None” for no effect (i.e., zero
variance). Leave no cells blank – be certain to enter “0” wherever
required.
Round your intermediate calculations to 2 decimal places
and round your final answers to the nearest dollar amount.Omit the
“$” sign in your response.)

rev: 12_15_2012

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Worksheet

Difficulty: Medium

Exercise 24-5 Computation and interpretation of labor variances L.O.
P2

Learning Objective: 24-P2 Compute materials and labor variances.

Exercise 24-7A Computation and interpretation of overhead spending,
efficiency, and volume variances L.O. P3

[The following information applies to
the questions displayed below.]

Sonic
Company set the following standard costs for one unit of its product for
2011.

Direct
material (16 Ibs. @ $3.10 per Ib.)

$

49.60

Direct
labor (12 hrs. @ $7.30 per hr.)

87.60

Factory
variable overhead (12 hrs. @ $1.60 per hr.)

19.20

Factory
fixed overhead (12 hrs. @ $0.46 per hr.)

5.52



Standard
cost

$

161.92






The
$2.06 ($1.60 + $0.46) total overhead rate per direct labor hour is based on
an expected operating level equal to 75% of the factory’s capacity of 47,000
units per month. The following monthly flexible budget information is also
available.

Operating Levels (% of capacity)


70%

75%

80%

Budgeted
output (units)

32,900

35,250

37,600

Budgeted
labor (standard hours)

394,800

423,000

451,200

Budgeted
overhead (dollars)

Variable
overhead

$

631,680

$

676,800

$

721,920

Fixed
overhead

194,580

194,580

194,580







Total
overhead

$

826,260

$

871,380

$

916,500














During
the current month, the company operated at 70% of capacity, employees worked
371,800 hours, and the following actual overhead costs were incurred.

Variable
overhead costs

$

586,180

Fixed
overhead costs

203,708



Total
overhead costs

$

789,888






Section Break

Difficulty: Medium

Exercise 24-7A Computation and interpretation of overhead spending,
efficiency, and volume variances L.O. P3

Learning Objective: 24-P3 Compute overhead variances.

5.

award:
2 out of
2.00 points

Exercise 24-7 Part 1

1.

Compute
variable overhead spending and efficiency variances. (Input all amounts as a positive value. Indicate the effect
of each variance by selecting “F” for favorable, “U” for
unfavorable, and “None” for no effect (i.e., zero variance). Leave
no cells blank – be certain to enter “0” wherever required. Omit
the “$” sign in your response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-7 Part 1

Learning Objective: 24-P3 Compute overhead variances.

6.

award:
2 out of
2.00 points

Exercise 24-7 Part 2

2.

Compute
Fixed overhead spending and volume variances. (Input all amounts as a positive value. Indicate the effect of each
variance by selecting “F” for favorable, “U” for
unfavorable, and “None” for no effect (i.e., zero variance). Leave
no cells blank – be certain to enter “0” wherever required. Omit
the “$” sign in your response.)

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Worksheet

Difficulty: Medium

Exercise 24-7 Part 2

Learning Objective: 24-P3 Compute overhead variances.

7.

award:
1 out of
1.00 point

Exercise 24-7 Part 3

3.

Compute
controllable variance. (Input all amounts as
a positive value. Indicate the effect of each variance by selecting
“F” for favorable, “U” for unfavorable, and
“None” for no effect (i.e., zero variance). Leave no cells blank –
be certain to enter “0” wherever required. Omit the “$”
sign in your response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-7 Part 3

Learning Objective: 24-P3 Compute overhead variances.

8.

award:
2 out of
2.00 points

Exercise 24-8 Computation and interpretation of materials variances L.O.
P2

BTS
Company made 4,400 bookshelves using 22,400 board feet of wood costing
$273,280. The company’s direct materials standards for one bookshelf are 10
board feet of wood at $12 per board foot.

(1)

Compute
the direct materials variances incurred in manufacturing these bookshelves. (Input all amounts as a positive value. Indicate
the effect of each variance by selecting “F” for favorable,
“U” for unfavorable, and “None” for no effect (i.e., zero
variance). Leave no cells blank – be certain to enter “0” wherever
required. Round your intermediate calculations to 2 decimal places and final
answers to the nearest dollar amount. Omit the “$” sign in your
response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-8 Computation and interpretation of materials variances
L.O. P2

Learning Objective: 24-P2 Compute materials and labor variances.

9.

award:
3 out of
3.00 points

Exercise 24-9A Materials variances recorded and closed L.O. P4

BTS
Company made 7,900 bookshelves using 89,900 board feet of wood costing
$539,400. The company’s direct materials standards for one bookshelf are 13
board feet of wood at $6.10 per board foot. BTS Company records standard
costs in its accounts and its material variances in separate accounts when it
assigns materials costs to the Goods in Process Inventory account.

(1)

Show
the journal entry that both charges the direct materials costs to the Goods
in Process Inventory account and records the materials variances in their
proper accounts. (Do not round your
intermediate calculations. Omit the “$” sign in your response.)

(2)

Assume
that BTS’s material variances are the only variances accumulated in the
accounting period and that they are immaterial. Prepare the adjusting journal
entry to close the variance accounts at period-end. (Do not round your intermediate calculations. Omit the
“$” sign in your response.)

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Worksheet

Difficulty: Medium

Exercise 24-9A Materials variances recorded and closed L.O. P4

Learning Objective: 24-P4 Appendix 24A-Prepare journal entries for
standard costs and account for price and quantity variances.

10.

award:
1.60 out of
2.00 points

Exercise 24-10 Computation of total overhead rate and total overhead
variance L.O. P3

Earth
Company expects to operate at 60% of its productive capacity of 52,000 units
per month. At this planned level, the company expects to use 26,000 standard
hours of direct labor. Overhead is allocated to products using a
predetermined standard rate based on direct labor hours. At the 60% capacity
level, the total budgeted cost includes $65,000 fixed overhead cost and
$291,200 variable overhead cost. In the current month, the company incurred
$314,000 actual overhead and 31,457 actual labor hours while producing 37,900
units.

(1)

Compute
its overhead application rate for total overhead. (Round your answers to 2 decimal places. Omit the
“$” sign in your response.)

(2)

Compute
its total overhead variance. (Input the
amount as positive value.
Indicate
the effect of each variance by selecting “F” for favorable,
“U” for unfavorable, and “None” for no effect (i.e., zero
variance).
Leave no cells blank – be certain to enter
“0” wherever required. Round your intermediate calculations to
two decimal places and final answer to the nearest dollar amount.
Omit
the “$” sign in your response.)

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Worksheet

Difficulty: Medium

Exercise 24-10 Computation of total overhead rate and total overhead
variance L.O. P3

Learning Objective: 24-P3 Compute overhead variances.

1.

award:
2 out of
2.00 points

Exercise 24-11 Computation of volume and controllable overhead variances
L.O. P3

Earth
Company expects to operate at 80% of its productive capacity of 51,000 units
per month. At this planned level, the company expects to use 30,600 standard
hours of direct labor. Overhead is allocated to products using a
predetermined standard rate based on direct labor hours. At the 80% capacity
level, the total budgeted cost includes $61,200 fixed overhead cost and
$306,000 variable overhead cost. In the current month, the company incurred
$330,000 actual overhead and 23,250 actual labor hours while producing 31,000
units.

(1)

Compute
the overhead volume variance. (Input the
amount as positive value. Indicate the effect of each variance by
selecting “F” for favorable, “U” for unfavorable, and
“None” for no effect (i.e., zero variance). Leave no cells blank –
be certain to enter “0” wherever required. Round your hours per
unit to 2 decimal places. Omit the “$” sign in your response.)

(2)

Compute
the overhead controllable variance.(Input the
amount as positive value. Indicate the effect of each variance by
selecting “F” for favorable, “U” for unfavorable, and
“None” for no effect (i.e., zero variance). Leave no cells blank –
be certain to enter “0” wherever required. Round your hours per
unit to 2 decimal places. Omit the “$” sign in your response.)

eBook LinkView Hint #1

Worksheet

Difficulty: Medium

Exercise 24-11 Computation of volume and controllable overhead
variances L.O. P3

Learning Objective: 24-P3 Compute overhead variances.

12.

award:
2 out of
2.00 points

Exercise 24-12 Computing and interpreting sales variances L.O. A1

Comp
Wiz sells computers. During May 2011, it sold 600 computers at a $700 average
price each. The May 2011 fixed budget included sales of 650 computers at an
average price of $660 each.

(1)

Compute
the sales price variance and the sales volume variance for May 2011. (Input all amounts as a positive value. Indicate the effect
of each variance by selecting “F” for favorable, “U” for
unfavorable, and “None” for no effect (i.e., zero variance). Leave
no cells blank – be certain to enter “0” wherever required. Omit
the “$” sign in your response).

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Worksheet

Difficulty: Medium

Exercise 24-12 Computing and interpreting sales variances L.O. A1

Learning Objective: 24-A1 Analyze changes in sales from expected
amounts.

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