Cost Accounting

Oct 15th, 2013
DreamIt
Category:
Business & Finance
Price: $30 USD

Question description

Need by Sat the 19th.

Problem 1:

Peaceful Corporation manufactures figurines based on the following information.

Standard costs $20
  • Materials (4 ounces at $5)
$8
  • Direct labor (1 hour per unit)
$4
  • Variable overhead (based on direct labor hours)
Fixed overhead budget $19,000
Actual results and costs
  • Materials purchased
  • Units
9,000
  • Cost
$39,600
Materials used in production
  • Finished product units
2,000
  • Raw material (ounces)
8,200
  • Direct labor hours
2,000
  • Direct labor cost
$20,000
  • Variable overhead costs
$5,980
  • Fixed overhead costs
$19,500

Required:

  1. Prepare a performance report for Peaceful using the following headings.
    1. Actual Production Costs
    2. Flexible Budget Costs
    3. Flexible Budget Variances
  2. Compute the following variances (show calculations).
    1. Materials usage variance
    2. Labor rate variance
    3. Labor efficiency variance
    4. Variable overhead spending variance
    5. Variable overhead efficiency variance
    6. Fixed overhead budget variance
  3. Give one possible explanation for each of the six variances computed in part b.

Problem 2:

The following is the current variable costing income statement for Dolly Corporation.

Sales (5,000 units) $100,000
Variable expenses Cost of goods sold $35,000
Selling (10% of sales) $10,000 $45,000
Contribution margin $55,000
Fixed expenses
  • Manufacturing overhead
$24,000
  • Administrative
$12,500 $36,500
  • Operating income
$18,500

Below is the following information on operations for Dolly Corporation.

Beginning inventory (units) 0
Units produced (units) 6,000
Manufacturing costs
Direct labor (per unit) $5.00
Direct materials (per unit) $2.30
Variable overhead (per unit) $2.40

Required:
Prepare an absorption costing income statement.

Problem 3:

The following information was compiled for two models of cell phones.

3G model 4G model Average
Budgeted Contribution Margin $80.00 $120.00 $95.25
Budgeted Sales in Units 28,000 18,000
Actual Sales in Units 28,600 16,500

Required:
Calculate the sales mix variance. (Show your calculations.)


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: Rice University
PREMIUM TUTOR

Studypool has helped 1,244,100 students

5 Reviews


Summary
Quality
Communication
On Time
Value
ashleyisgod
Nov 30th, 2016
" Top quality work from this guy! I'll be back! "
Molly_Moon
Nov 7th, 2016
" AMAZING as always! "
Hemapathy
Oct 16th, 2016
" all I can say is wow very fast work, great work thanks "
BlueOcean
Oct 2nd, 2016
" Awesome! Exactly what I wanted. "
kevin12622
Sep 23rd, 2016
" Goes above and beyond expectations ! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1823 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors