Blue Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DLusage and price expectations.Direct materials9 square yards per unit@ $4/square yardDirect labor1.2 DL hours per unit@$12/DL hourThroughout the year, Blue used 32,430 square yards of fabric in the process of making 3,450 tents. The company had originallyplanned to produce and sell 3,150 tents. In keeping with its desire to hold some DM Inventory at year-end, it purchased 34,380 squareyards of canvas at $4.20 per square yard. Blue's DL cost totaled $52,026 for the 4,002 hours that were actually used.(a)Determine Blue's DM and DL price and efficiency variances; specify the amount and sign for all.Pricevariance$EfficiencyAvarianceDMA+ADL

Lets understand the basics.Direct material price variance is a variance between the price at which…

Answered: Blue Corp. supplies its customers with…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Skysong Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor Variable-MOH (a) 11 square yards per unit 1.3 DL hours per unit 1.3 DL hours per unit Throughout the year, Skysong used 4,095 DL hours in the process of making 3,250 tents. The company had originally planned to produce and sell 2,950 tents. Its actual variable-MOH costs totaled $10,852 for the year. Determine Skysong's variable-MOH price and efficiency variances. Also identify whether the company's variable-MOH costs were under-or overapplied, and by how much. Variable-MOH price variance Variable-MOH $ Variable-MOH efficiency variance $ @ $5/square yard @$14/DL hour @$2.60/DL hour $
Swifty Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials Direct labor Variable-MOH Fixed-MOH (a) Throughout the year, Swifty used 3,780 DL hours in the process of making 3,500 tents. The company had originally planned to produce and sell 3,200 tents with budgeted fixed-MOH cost of $17,600. Its actual fixed-MOH costs amounted to $17,086 for the year. (b) 10 square yards per unit 1.1 DL hours per unit 1.1 DL hours per unit 1.1 DL hours per unit Your answer is correct. Determine Swifty's fixed-MOH price and volume variances. Also identify whether the company's fixed-MOH costs were under-or overapplied, and by how much. Fixed-MOH price variance Fixed-MOH Fixed-MOH volume variance $ (2) $ (3) @ $6/square yard @ $16/DL hour @ $2.80/DL hour No. Account Titles and Explanation (1) @ $5/DL hour 514 1650 2164 Favorable Record the journal entries to accompany the following…
Marigold Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials 9 square yards per unit @ $5/square yard Direct labor 1.4 DL hours per unit @ $18/DL hour Variable-MOH Fixed-MOH 1.4 DL hours per unit 1.4 DL hours per unit @ $2.80/DL hour @ $4/DL hour Throughout the year, Marigold used 4,795 DL hours in the process of making 3,500 tents. The company had originally planned to produce and sell 3,250 tents with budgeted fixed-MOH cost of $18,200. Its actual fixed-MOH costs amounted to $17,406 for the year. (a) Determine Marigold's fixed-MOH price and volume variances. Also identify whether the company's fixed-MOH costs were under-or overapplied, and by how much. Fixed-MOH price variance $ Fixed-MOH volume variance Fixed-MOH +A $ $
Bob’s Bistro produces party-sized hoagie sandwiches. For next year, Bob’s Bistro predicts that 52,300 units will be produced with the following total costs: Direct materials ? Direct labor $52,000 Variable overhead 19,000 Fixed overhead 235,000 Next year, Bob’s Bistro expects to purchase $122,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct materialsInventory Work-in-ProcessInventory Beginning $5,000 $10,100 Ending $4,900 $12,100 Next year, Bob’s Bistro expects to produce 52,300 units and sell 51,600 units at a price of $17.00 each. Beginning inventory of finished goods is $41,500, and ending inventory of finished goods is expected to be $33,000. Total selling expense is projected at $28,500, and total administrative expense is projected at $116,500. Required: Question Content Area 1. Prepare an income statement in good form. Round the percent to four decimal places before…
RampUp Storage Containers produces a 1,000-cubic-foot metal storage unit that is used by storage companies and other businesses needing low-cost, mobile storage units. The units sell for $3,000 per unit. The company uses a standard costing system. At the start of 2016, standard costs were set as follows: Standard cost per unit: $1,200 Material cost (6 prefabricated metal sheets × $200) Direct labor (10 hours × $20) 200 Overhead ($500 per unit) 500 Total $1,900 The overhead rate was calculated as follows: At the start of 2016, the company estimated that it would produce and sell 5,000 units and incur $500,000 of variable overhead costs and $2,000,000 of fixed overhead costs: Variable overhead Fixed overhead $ 500,000 2,000,000 2,500,000 5,000 Total Divided by estimated production Overhead cost per unit $ 500 Based on estimated sales, standard costs, and other information, the following budget was pre- pared: 2016 Budget (Expected Production and Sales of 5,000 Units) Sales $15,000,000…
Hernandez, Inc. manufactures three models of picture frames for a total of 8,000 frames per year. The unit cost to produce a metal frame follows: $ 6 8. Direct materials Direct labor Variable overhead 2 Fixed overhead (70% unavoidable) Total $21 A local company has offered to supply Hernandez the 8,000 metal frames it needs for $17 each. Instructions Create an incremental analysis for the make-or-buy decision. Show your work. What should Hernandez decide?
Sunshade produces a special canvas top for its high quality aluminum gazebo. The costs to produce the 900 units needed each year are as follows: Treated canvas fabric $144,000 Aluminum poles 36,000 Aluminum frame fittings 9,000 Direct labor 72,000 Variable manufacturing overhead 22,500 Fixed manufacturing overhead 58,500 $342,000 Total costs Coolaroo has offered to make the needed canvas tops of comparable quality for $293 each, FOB shipping point. Sunshade would pay for shipping at a cost of $50 per unit. Sunshade's accountant has estimated that 20% of the fixed overhead can be avoided if the tops are purchased. Sunshade should: Select one: a. Buy the part, thereby saving $3 per unit. b. Buy the part, thereby saving $10 per unit. c. Make the part, thereby saving $15 per unit. d. Buy the part, thereby saving $5 per unit.
Garcia Co. sells snowboards. Each snowboard requires direct materials of $105, direct labor of $35, and variable overhead of $50. The company expects fixed overhead costs of $645,000 and fixed selling and administrative costs of $111,000 for the next year. It expects to produce and sell 10,500 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 15% of total cost? (Round your answer to 2 decimal places.) Selling Price _____________ Per Unit
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 50,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $52 $15 Unit variable cost $12 $9 Direct fixed cost $25,200 $48,000 Common fixed selling and administrative expenses total $78,000.See screenshots
Bonita Sleep Systems manufactures nylon mesh hammocks for a chain of retail outlets located throughout the southeast. The company plans to manufacture and sell 28,000 hammocks during the fourth quarter. Overhead costs are expected to include: Variable indirect materials $ 4.75 per hammock Variable indirect labor $ 11.25 per hammock Other variable overhead $ 3.25 per hammock Salaries $ 50,000 per quarter Insurance $ 6,000 per quarter Depreciation $ 25,000 per quarter Prepare Bonita's manufacturing overhead budget for the fourth quarter.
Vintage Audio Inc. manufactures audio speakers. Each speaker requires $96 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period: Speaker assembly cell, estimated costs: Labor Depreciation Supplies Power Total cell costs for the period The operating plan calls for 195 operating hours for the period. Each speaker requires 12 minutes of cell process time. The unit selling price for ach speaker is $260. During the period, the following transactions occurred: 1. Purchased materials to produce 650 speaker units. 2. Applied conversion costs to production of 620 speaker units. 3. Completed and transferred 590 speaker units to finished goods. 4. Sold 565 speaker units. There were no inventories at the beginning of the period. a. Journalize the summary transactions (1)-(4) for the period. Round the per unit cost to the nearest cent and use in subsequent computations. If an amount box does not require an entry, leave it blank.…

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