Devry Acct344 Cost Accounting: Week 7
Question # 00021764
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Updated on: 08/02/2014 01:31 PM Due on: 08/27/2014
Problem 1:
Peaceful Corporation manufactures figurines based on the following information.
| Standard costs | $20 | |
| $8 | |
| $4 | |
| ||
| Fixed overhead budget | $19,000 | |
| Actual results and costs | ||
| ||
| 9,000 | |
| $39,600 | |
| Materials used in production | ||
| 2,000 | |
| 8,200 | |
| 2,000 | |
| $20,000 | |
| $5,980 | |
| $19,500 |
Required:
- Prepare a performance report for Peaceful using the following headings.
- Actual Production Costs
- Flexible Budget Costs
- Flexible Budget Variances
- Compute the following variances (show calculations).
- Materials usage variance
- Labor rate variance
- Labor efficiency variance
- Variable overhead spending variance
- Variable overhead efficiency variance
- Fixed overhead budget variance
- 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 | ||
| $24,000 | |
| $12,500 | $36,500 |
| $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.)
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Solution: ACCT 344 Homework, Quizzes, Final Exam..............(ACCT344 Cost Accounting - DeVry)