# Cost Accounting

Oct 15th, 2013
DreamIt
Category:
Price: \$30 USD

Question description

### 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
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.)

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

Studypool has helped 1,244,100 students

## Review from our student for this Answer

SoccerBoss
Oct 20th, 2013
"Excellent work as always thanks so much"

1831 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