1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Maurinko [17]
3 years ago
12

Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two

-liter bottles are as follows:
Cost Category Standard Cost per 100 Two-Liter Bottles
Direct labor $ 2.00
Direct materials 9.10
Factory overhead 0.55
Total $11.65 B.
At the beginning of July, GBC management planned to produce 400,000 bottles. The actual number of bottles produced for July was 406,000 bottles. The actual costs for July of the current year were as follows:
Cost Category Actual Cost for the Month Ended July 31
Direct labor $ 7,540
Direct materials 35,750
Factory overhead 2,680
Total $45,970
Required:
A. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for GBC, assuming planned production.
B. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July.
C. Interpret the budget performance report.
Business
1 answer:
yan [13]3 years ago
5 0

Answer:

See below.

Explanation:

Since the costs are per 100, to calculate total standard we multiply by 400,000/100 = 4000 and actual qty then is 4060.

For A, standard cost budget at standard prices.

Direct Labor            (2*4000)          = $8,000

Direct Material     (9.1*4000)        = $36,400

Factory Overhead  (0.55*4000)    = $2,200

Total                                                        = $46,600

For B, The total cost variances are as follows,

Material cost variance = (Standard Price - Actual Price) * Actual Quantity  

where, Standard price = 9.1 and Actual price = (35750/4060) = $8.81

Variance = (9.1 - 8.81) * 4060  = $1177.4 Favorable

Direct labor cost variance = (Standard rate - Actual Rate) * Actual Quantity

where, Standard rate = 2 and Actual rate = (7540/4060) = $1.86

Variance = (2-1.86) * 4060  = $568.4 Favorable

Factory Overhead variance

= Standard applied - Actual applied  

Variance = (0.55*4060) - 2680     = $447 Unfavorable

Net effect on total cost variances = (1177.4+568.4-447) = $1298.8 Favorable

For c)

The over all cost performance has favored the business as they ere able to lessen costs in direct labor and material department. However, the fixed costs performance has deteriorated and there may be some technical issues that the company can deal with to ensure they perform better on fixed costs. The over all performance is favorable.

You might be interested in
Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting D
blagie [28]

Answer:

e. 225,000 materials; 195,000 conversion.

Explanation:

direct materials

beginning WIP inventory = 0%*50000

                                          = 0

started and completed = 150000*100%

                                       = 150000

ending WIP inventory = 75000*100%

                                    = 75000

equivalent units = 0 + 150000 + 75000

                           = 225000

conversion

beginning WIP inventory = 50000*60%

                                          = 30000

started and completed = 150000*100%

                                       = 150000

ending WIP inventory = 75000*20%

                                    = 15000

equivalent units = 30000 + 150000 + 15000

                           = 195000

Therefore, The equivalent units for direct materials and conversion respectively for May is $225,000 and $195,000 respectively.

7 0
2 years ago
Prepare traditional and contribution margin income statements (Learning Objective 6) The Willowick Ice Cream Shoppe sold 8,700 s
Leto [7]

Answer:

Sales Revenues 26100

COGS              <u>    5655</u>

gross profit        20445

rent expense                 1600

depreciation expense   200

operating expense <u>2600</u>

net income                16045

   

Sales Revenues          26100

Variable Cost               <u>     6305 </u>

Contribution margin        19795

rent expense                     1600

depreciation expense       200

fixed operating expense<u>   1950  </u>

net income                   16045

Explanation:

traditional:

COGS

$12 tub / 30 ice cream cones = $0.40

+ 0.25 ice cream cones

total per unit 0.65

8,700 x 0.65 = 5655

Gross profit: sales revenue less COGS

then, we subtract the rent expense, depreicaiton expense and operatign expenses to get net income.

contribution the variable cost will be subtracted from the sales revenues

that will include the 75% of the operating expenses

The difference between sales revenue and variable cost is called contribution margin.

6 0
3 years ago
Which of the following describes the results of an increase in supply on price and quintity in the market?
Furkat [3]

Answer:

This question is incomplete. However, I found the full question with choices from the web ;

Which of the following describes the results of an increase in supply on price and quantity in the market?

a.) Both price and quantity increase

b.) Both price and quantity decrease

c.) Price increases and quantity decreases

d.) Price decreases and quantity increases

e.) Insufficient information

Explanation:

If the supply of a product or service  increases in the market, it means that there will be an increase in the quantity of that product/service. Due to the interplay of  the law of demand and supply, competition among suppliers will increase, driving the price down. Therefore, there will be a  fall the equilibrium price and increase in quantity , making choice D correct.

7 0
3 years ago
From April 2019 to July 2019​, business inventories decreased by $ 2034 billion. ​*Real-time data provided by Federal Reserve Ec
olya-2409 [2.1K]

Answer:

Was higher.

Explanation:

We have to use a little bit of logci to answer this question, we just have to keep in mind that Aggregate expenditure is the cost of all of the products and services offered in a nation, so ig the business inventories, which are basically the inventories that the stores have, if this go down it means that previously produced goods and services are being sold, this increases the aggregate expenditure, and Gross domestic product is semi-stable, so aggreagate expenditure will be higher than GDP.

7 0
3 years ago
If firms and households form their expectations about inflation by looking at past inflation, this form of expectations formatio
eduard

Answer:

B) adaptive

Explanation:

Based on the scenario being described it can be said that this form of expectations formation is known as adaptive expectations. These are expectations formed from a process in which individuals predict what will most likely occur in the future based on the data of what has already happened in the past.

6 0
3 years ago
Other questions:
  • All production costs have been steadily rising at Donner Company for several periods. In this environment, Donner Company’s cost
    15·1 answer
  • Miller owns a personal residence with a fair market value of $202,700 and an outstanding first mortgage of $162,160, which was u
    8·1 answer
  • Bundling is expected to provide greater profits when the two bundled goods are: i. substitutes. ii. goods that have high fixed c
    7·1 answer
  • The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Acc
    6·1 answer
  • The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7. StoreAll Inc.
    8·1 answer
  • Vibrant Company had $980,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $540,00
    7·1 answer
  • 42-43. For the following independent situation for an individual taxpayer. Item Use (Personal or Business) Business Basis $25,00
    9·1 answer
  • When you buy stock in the "stock market" what are you buying? Why would you but a stock?
    11·1 answer
  • In analyzing the chart, what is the relationship between fees and dollar advanced? What do you think that payday lenders base th
    11·1 answer
  • developing a content distribution goal begins with identifying the purpose behind your distribution efforts. which questions can
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!