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
Slav-nsk [51]
3 years ago
14

Variable overhead is applied based on direct labor hours. The variable overhead rate is $220 per direct-labor hour. The fixed ov

erhead rate (at the master budget level of activity) is $110 per unit. All non-manufacturing costs are fixed and are budgeted at $3.2 million for the coming year.Variable overhead is applied based on direct labor hours. The variable overhead rate is $220 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $110 per unit. All non-manufacturing costs are fixed and are budgeted at $3.2 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $1,110,000 unfavorable. The following is the actual income statement (in thousands of dollars) for the year. Sales revenue $50,638 Less variable costs Direct materials 5,268 Direct labor 4,010 Variable overhead 13,980 Total variable costs $23,258 Contribution margin $27,380 Less fixed costs Fixed manufacturing overhead 1,250 Non-manufacturing costs 1,430 Total fixed costs $2,680 Operating profit $24,700 During the year, the company purchased 216,000 pounds of material and employed 60,400 hours of direct labor.
Required:
a. Compute the direct material price and efficiency variances.
b. Compute the direct labor price and efficiency variances.
c. Compute the variable overhead price and efficiency variances.
Business
1 answer:
Dmitriy789 [7]3 years ago
6 0

Answer:

Missing word at inception of the question <em>"Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 140000 liters at a budgeted price of $375 per liter this year. The standard direct cost sheet for one liter of preservative follows: Direct materials (2 pounds at $24) $48 Direct labor (0.5 hours at $64) $32"</em>

<em />

a . Direct Material Price Variance = (Actual Qty * Std. Price) - (Actual Qty * Actual Price)

= (216,000 * $24) - ($ 5,268,000)

= $5,184,000 - $5,268,000

= $84,000 U

Direct Material Efficiency Variance = (Actual Qty - Std. Qty) * Std. Price

= (216,000 – 280,000) * $24

= -64,000 * $24

= $1,536,000 U

b. Direct Labor Price Variance = (Actual Hrs * Std. Rate) - (Actual Hrs *  Actual Rate)

= (60,400 * $ 64) - ($ 4,010,000)

= $3,865,600 - $4,010,000

= $144,400 U

Direct Labor Efficiency Variance = Std. Rate *(Std. Hrs - Actual Hrs)

= $ 64 * (70,000 - 60,400)

= $614,400 F

c. Variable OH Price Variance = (Std. Hrs * Std. Rate) - (Actual Variable OH)

= (70,000 * $220) - 1,398,000

= $ 15,400,000 - $13,980,000

= $1,420,000 F

Variable OH Efficiency Variance = (Std. Hrs - Actual Hrs) * Std. Rate

= (70,000 - 60,400) × $ 220

= $2,112,000 F

<u>Workings</u>

Standard Qty = 140,000 litres × 2 Pound per litre = 280,000 pounds

Standard Hrs = 140,000 litres × 0.5 hrs per litre = 70,000 hrs

You might be interested in
The financial records of LeRoi Jones Inc. were destroyed by fire at the end of 2014. Fortunately, the controller had kept certai
Stolb23 [73]

Answer:

LeRoi Jones Inc

Income statement for the year 2014

Sales (100/8 × $100,000)                                                 $1,250,000

Less Cost of Sales

Beginning merchandise                                  $92,000

Add Purchases                                               $481,600

Less Ending merchandise ($92,000 - 20%) ($73,600)  ($500,000)

Gross Profit                                                                         $750,000

Less Expenses :

Sales Discounts                                                  $17,000

Interest expense                                               $20,000

Administrative expenses ($500,000 × 20%) $100,000 ($137,000)

Profit before tax                                                                  $613,000

Income tax expense at 30%                                             ($183,900)

Net Income / Loss                                                              $429,100

Earnings Per Share                                                                 $21.46

Explanation:

Notes on income statement preparation

Use the statistical data to fill in the line items of the Income Statement as shown above.

For the Calculation of Sales, first calculate the administrative expenses. Apply the 8% on the administration cost to find sales at 100%.

Earnings Per Share = Earnings attributable to holders of Common Stock ÷ Weighted Average Number of Common Stock

                                = $429,100 ÷ $20,000

                                = $21.46

8 0
3 years ago
En que afecta la venta de mascotas exoticas a la biodiversidad?
andrew11 [14]

Answer:

Explanation:

"El comercio internacional de mascotas exóticas es un factor importante y creciente de la pérdida de biodiversidad y, a menudo, compromete los estándares requeridos para un buen bienestar animal; una quinta parte de los informes recientes sobre el comercio de vida silvestre se debió a la demanda de mascotas o animales para su uso en entretenimiento; cosecha insostenible de animales salvajes

8 0
3 years ago
Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart ha
katen-ka-za [31]

Answer and Explanation:

The computation is shown below:

a. The amount and the character of the gain or loss is

Sale value of the property $550,000

Less: (Purchase value - depreciation) $400,000

Total gain recognized $150,000

Ordinary income recapture is $100,000

remaining 1231 gain or loss $50,000

b.

Section 1231 Gain = $50,000

, Rate of tax on $100,000 i.e. 32% = $32000

Rate of tax on $50000 i.e. 15% = $7500

So,

The Total tax liability is

= $32,000 + $7,500

= $39,500

5 0
3 years ago
While stockholders elect the board of directors of a corporation, the board of hires the president, vice president and other off
klemol [59]

The answer is directors.

<h3>What entity elects the board of directors for a corporation?</h3>
  • The corporation's stockholders elect its board of directors, but they play no other direct role in how the company is run. The board makes the important company decisions of directors.
  • The president of a corporation is chosen directly by its stockholders.
  • In addition to their duty as members of the board of directors, the officers are charged with particular duties. President As the company's chief executive officer, the president, is responsible for the following duties: Preside over board meetings. Served as the executive committee's chairman.
  • The promotion of the organization's work and the recruitment of resources to support its programs and services are some of the duties of board members.

While stockholders elect the board of directors of a corporation, the board of hires the president, vice president and other officers, who manage the corporation.

The answer is directors.

To learn more about The board of directors of a corporation, refer to:

brainly.com/question/21121907

#SPJ4

5 0
1 year ago
.If you employer gives you a raise that is equal to the inflation rate, then your real salary will have increased T/F
AysviL [449]

I would say the answer is True

7 0
4 years ago
Other questions:
  • Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 80 units. if the
    11·1 answer
  • Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 65,00
    7·1 answer
  • Casio, a giant electronic products producer, synthesizes it abilities in miniaturization, microprocessor design, material scienc
    12·1 answer
  • Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies sug
    8·1 answer
  • Blackhorse Productions, Inc. used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts s
    8·1 answer
  • Recently many large commercial and retail banks have been choosing to increase the amount of excess reserves they hold in the Fe
    14·1 answer
  • Oregon Forest Products will acquire new equipment that falls under the five-year MACRS category. The cost is $500,000. If the eq
    14·2 answers
  • Garcia Co. sells snowboards. Each snowboard requires direct materials of $113, direct labor of $43, and variable overhead of $58
    11·1 answer
  • Compulsory school attendance laws and the great expenditures for education both demonstrate our recognition of the importance of
    7·1 answer
  • a sophisticated blank test might involve manipulating an advertising variable like schedule or copy through cable systems, and o
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!