All categories

3 years ago

Campbell Clothing produces men's ties. The following budgeted and actual amounts are for 2016:

Business

1 answer:

Elina [12.6K]3 years ago

6 0

Answer:

Campbell Clothing

Manufacturing Performance budget Report

For the year ended December 31, 2016

Budget Actual Difference

Direct materials $69,600 $71,000 $1,400 U

Direct labor $87,600 $86,500 $500 F

Equipment depreciation $5,000 $5,000 $0 Nil

Indirect labor $8,700 $8,600 $100 F

Indirect materials $10,440 $9,600 $840 F

Rent and insurance $12,000 $13,000 $1000 U

Total Costs $192,740 $193,700 $960 U

Workings

Planning budget

Direct materials 60,000 * $12 = $69,600

Direct labor 75,000 * $15,000 = $87,600

Equipment depreciation 5,000

Indirect labor 7,500 * $1.50 = $8,700

Indirect materials 9,000 * $1.80 = $10,440

Rent and insurance $12,000

You might be interested in

Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February

OverLord2011 [107]

Answer:

Debit Inventory $40,600

Credit Cash account $40,600

Being entries to recognize the cost of inventory

Explanation:

The initial recognition of inventory is to be done including all the cost incurred in bring inventory to the place of use or storage. These includes freight and the cost of the item. When inventory is purchased on account, entries required are Debit Inventory, credit account payable. Where cash is paid, the debit is same but the credit entry is posted to the cash account.

Hence total cost incurred (which is the cost of inventory)

= $40,000 + $600

= $40,600

6 0

3 years ago

On October 1, 2022, Ivanhoe Company places a new asset into service. The cost of the asset is $87500 with an estimated 5-year li

Dimas [21]

Answer:

$3150

Explanation:

Given:

Cost of the asset purchased = $87500 (on 1st October. 2022)

Salvage value at the end of its useful life = $24500

Useful life estimated = 5 years

Question asked:

What is the depreciation expense for 2022 if Ivanhoe Company uses the straight-line method of depreciation?

Solution:

As we know:

$Straight-Line\ Depreciation\ Expense=\frac{Cost\ - Salvage\ Value}{Useful\ Life\ of\ the\ Asset}$

$=\frac{87500-24500}{5} =\frac{63000}{5} =12600$

Depreciation expenses per year = $12600

But we have to find depreciation expenses for 2022 for:-

From 1st October, 2022 to 31st December, 2022 = 3 months.

Straight-Line Depreciation Expense for Partial Year = 

 $D\times\frac{N}{12} \\\\ D=Depreciation\ expense\ for\ a\ complete\ year.\\N= Number\ of\ months\ during\ which\ the\ fixed\ asset\ was\ available\ for\ use$

Depreciation Expense for 3 months = $12600\times\frac{3}{12} =\frac{37800}{12} =3150$

Therefore, the depreciation expense for 2022 if Ivanhoe Company uses the straight-line method of depreciation is $3150.

5 0

3 years ago

University Printing Services offer a program of reproducing class notes for participating professors teaching large classes with

Licemer1 [7]

Answer:

233 copies

Explanation:

Cost of shortage (Cs)= Revenue per unit - Cost per unit

Cost of shortage (Cs) = $12 - $8

Cost of shortage (Cs) = $4

Cost of excess (Ce) = Original cost per unit - Salvage value per unit

Cost of excess (Ce) = $8 - $0

Cost of excess (Ce) = $8

Service Level (SL) = Cs/(Cs+Ce)

Service Level (SL) = $4 / ($4+$8)

Service Level (SL) = $4/$12

Service Level (SL) = 0.33

Optimum Level = Minimum student + SL*(Maximum student - Minimum student)

Optimum Level = 200 + 0.33*(300 - 200)

Optimum Level = 200 + 33

Optimum Level = 233 copies

8 0

2 years ago

Elise Corporation has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%. Fixed costs total $400,000 and

horsena [70]

Answer:

The numbers of product A must be sold to break-even are 800 units

Explanation:

The break-even point is calculated by using following formula:

Break-even point in units = Fixed expense/(Selling price per unit-Variable expense per unit) = Fixed expense/weighted-average contribution margin per unit = $400,000/$100 = $4,000 units

Elise Corporation has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%.

The numbers of product A must be sold to break-even = $4,000 x 20% = 800 units

6 0

3 years ago

Shawn is a manager at Jolez Solutions. Whenever employees underperform, he asks them to work overtime for a few days. In this ca

jenyasd209 [6]

Answer:

Feedback control

Explanation:

Feedback control is a procedure which Shawn is using to assess the efficiency and capability of the team. Feedback control helps to evaluate the benefits the organisation has provided to the firm compared to the cost incurred. This control procedure is utilised by the managers to determine the capabilities of the employers.

5 0

3 years ago