会计220 2

Zanny Electronics Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard for each radio is 0.9 hours. The standard direct labor cost per hour is $7.20. During the month of August, Zanny's water ski radio production used 6,600 direct labor-hours at a total direct labor cost of $48,708. This resulted in production of 6,900 water ski radios for August. What is Zanny's labor rate variance for August?

$1,188 Unfavorable Labor rate variance = (AH × AR) - (AH × SR)= $48,708 - (6,600 direct labor-hours × $7.20 per direct labor-hour)= $48,708 - ($47,520)= $1,188 U

Using the following information, determine the unit product cost under absorption costing. Number of units produced each year 7,000Variable costs per unit: Direct materials$51Direct labor$12Variable manufacturing overhead$2Variable selling and administrative expense$5Fixed costs per year: Fixed manufacturing overhead$441,000Fixed selling and administrative expense$112,000

$128 per unit Direct materials$51Direct labor 12Variable manufacturing overhead 2Fixed manufacturing overhead cost ($441,000 ÷ 7,000 units) 63Absorption costing unit product cost$128

Assume a company that bases its manufacturing overhead budget on budgeted direct labor-hours. For January the direct labor budget indicates that 7,400 direct labor-hours will be required and the variable overhead rate is $9.50 per direct labor-hour. In addition, the company's budgeted fixed manufacturing overhead is $130,980 per month, which includes depreciation of $10,360. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for January should be:

$27.20 Manufacturing Overhead Rate JanuaryBudgeted direct labor-hours 7,400Variable manufacturing overhead rate$9.50Variable manufacturing overhead$70,300Fixed manufacturing overhead 130,980Total manufacturing overhead (a)$201,280Budgeted direct labor-hours (b) 7,400Predetermined overhead rate (a) ÷ (b)$27.20

The following information relates to the direct labor at Padmaja Manufacturing, Inc. for March: ActualStandardLabor cost per hour$18.00 $17.50 Labor hours per unit produced 1.5 1.4 During March, Padmaja produced 2,100 units. What is Padmaja's labor efficiency variance for March?

$3,675 Unfavorable Labor efficiency variance = (AH - SH) × SR= [(2,100 units × 1.5 hours per unit) - (2,100 units × 1.4 hours per unit)] × $17.50 per hour= [(3,150 hours) - (2,940 hours)] × $17.50 per hour= [210 hours] × $17.50 per hour= $3,675 U

Dermody Snow Removal's cost formula for its vehicle operating cost is $2,850 per month plus $317 per snow-day. For the month of December, the company planned for activity of 16 snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $7,640. The spending variance for vehicle operating cost in December would be closest to:

$352 U Actual results$7,640Flexible budget [$2,850 + ($317 × 14)] 7,288Spending variance$352 Since the actual expense is greater than the flexible budget, the variance is unfavorable (U)

Jeanclaude Corporation produces and sells one product. The budgeted selling price per unit is $105. Budgeted unit sales for July, August, September, and October are 7,400, 7,500, 13,800, and 15,300 units, respectively. All sales are on credit. Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month.The budgeted accounts receivable balance at the end of August is closest to:

$472,500 The budgeted accounts receivable balance at the end of August is: August sales 7,500 units × $105 per unit (a)$787,500 Percent uncollected (b) 60%Accounts receivable (a) × (b)$472,500

Last year, Kirsten Corporation's variable costing net operating income was $63,400. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $10,700. What was the absorption costing net operating income last year?

$52,700 Variable costing net operating income$63,400 Add fixed manufacturing overhead costs deferred in inventory underabsorption costing Deduct fixed manufacturing overhead costs released from inventoryunder absorption costing (10,700)Absorption costing net operating income$52,700

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory 0Units produced 8,900Units sold 8,500Units in ending inventory 400Variable costs per unit: Direct materials$26Direct labor$25Variable manufacturing overhead$4Variable selling and administrative expense$4Fixed costs: Fixed manufacturing overhead$249,200Fixed selling and administrative expense$17,000 What is the variable costing unit product cost for the month?

$55 per unit Direct materials$26Direct labor 25Variable manufacturing overhead 4Variable costing unit product cost$55

Budgeted unit credit sales for October, November, December, and January: 8,400, 12,000, 13,800, and 14,300. Historically, 40% of sales are collected in the month of the sale and 60% in the following month. If the budgeted selling price per unit is $84, the expected cash collections for November are closest to:

$826,560 The expected cash collections for November are computed as follows: October sales: 8,400 units × $84 per unit = $705,600;$705,600 × 60% =$423,360November sales: 12,000 units × $84 per unit = $1,008,000;$1,008,000 × 40% =$403,200Total cash collections$826,560

A CVP graph:

A CVP graph shows the break-even point as the intersection of the total sales revenue line and the total expense line.

This is the report from an organic dogfood manufacturer: Bags produced and sold 320,000Sales revenue$2,496,000Variable manufacturing expense$1,056,000Fixed manufacturing expense$716,800Variable selling and administrative expense$288,000Fixed selling and administrative expense$342,400Net operating income$92,800 The company's degree of operating leverage is closest to:

12.41 Sales revenue$1,560,000Variable expenses: Variable manufacturing expense 660,000Variable selling and administrative expense 180,000Contribution margin$720,000 Degree of operating leverage = Contribution margin ÷ Net operating income= $720,000 ÷ $58,000 = 12.41

A company sells a single product $20 per unit that generated $300,000 in revenue and a net operating income of $24,000. If fixed expenses totaled $96,000 for the year, the break-even point in unit sales was:

12,000 units Profit = (Sales - Variable expenses) - Fixed expenses$24,000 = ($300,000 - Variable expenses) - $96,000Variable expenses = $300,000 - $96,000 - $24,000 = $180,000CM ratio = Contribution margin ÷ Sales = ($300,000 - $180,000) ÷ $300,000 = 0.40Dollar sales to break even = Fixed expenses ÷ CM ratio = $96,000 ÷ 0.40 = $240,000Unit sales to break even = $240,000 ÷ $20 per unit = 12,000 units

Speckman Enterprises, Inc., produces and sells a single product whose selling price is $200.00 per unit and whose variable expense is $68.00 per unit. The company's monthly fixed expense is $514,800.Assume the company's target profit is $115,000. The unit sales to attain that target profit is closest to:

4,781 units Unit CM = Selling price per unit - Variable expenses per unit= $200.00 per unit - $68.00 per unit = $132.00 per unitUnit sales to attain a target profit = (Target profit + Fixed expenses) ÷ Unit CM= ($514,800 + $11,000) ÷ $132.00 per unit= $525,800 ÷ $132.00 per unit = 3,983 units

Consider the following income statement. Sales (3,000 units)$180,000Variable expenses 62,400Contribution margin 117,600Fixed expenses 108,000Net operating income$9,600 The contribution margin ratio is closest to:

65% CM ratio = Contribution margin ÷ Sales = $72,000 ÷ $180,000 = 40%

BONUS: Consider the following budgeted sales and budgeted production: JulyAugustSeptemberSales in units70,00083,000?Production in units73,25084,75091,750 17,500 units of product are on hand at July 1. The ending units sales in inventory at the end of every month should be 25% of the next month's sales in units. If October sales are expected to be 97,000 units, budgeted unit sales for September would be (in units): (Round your intermediate calculations to 2 decimal places.)

86,000 AugustSeptemberBudgeted unit sales83,000XAdd desired ending finished goodsinventory (X × 25%; 97,000 × 25%)0.25X24,250Total needs83,000 + 0.25X24,250 + XLess beginning finished goodsinventory (83,000 × 25%; X × 25%)20,7500.25XRequired production in units84,75091,750 83,000 + 0.25X - 20,750 = 84,7500.25X = 22,500X = 90,000or24,250 + X - 0.25X = 91,7500.75X = 67,500X = 90,000

The following materials standards have been established for a particular product: Standard quantity per unit of output 4.6gramsStandard price$15.05per gram The following data pertain to operations concerning the product for the last month: Actual materials purchased 3,100gramsActual cost of materials purchased$44,020 Actual materials used in production 2,400gramsActual output 300units What is the amount of the materials quantity variance for the month ($x,xxx format)? Is the materials quantity variance favorable (F) or unfavorable (U)? What is amount of the materials price variance for the month ($x,xxx format)? Is the materials price variance favorable (F) or unfavorable (U)?

Answer 1:2635 Answer 2:U Answer 3:2635 Answer 4:U

If nothing else is affected, what impact would increasing the price have on the two factors below? ContributionMargin RatioBreak-evenPointA)IncreaseDecreaseB)DecreaseDecreaseC)IncreaseNo effectD)DecreaseNo effect

Choice A

The following information relates to purchases and use of material for April: Material purchased 12,000yardsMaterial used in production 10,000yardsStandard material allowed for suits produced 10,800yards If materials price variance was $3,000 Favorable and materials quantity variance was $5,000 Favorable, what does the company use as a standard price per yard of material?

Materials quantity variance = (AQ - SQ) × SP$5,000 F = (10,000 yards - 10,800 yards) × SP-$5,000 = (10,000 yards - 10,800 yards) × SP-$5,000 = (-800 yards) × SPSP = $5,000 ÷ 800 yards = $6.25 per yard

Sleeter Corporation has budgeted unit production for April, May, June, and July are 7,500, 11,900, 10,800, and 14,800 units, respectively. All sales are on credit. The ending raw materials inventory equals 30% of the following month's raw materials needs for production. Each unit of finished goods requires 6 pounds of raw materials, which cost $5.00 per pound. The budgeted cost of raw material purchases for April is closest to:

The budgeted required production for May is computed as follows: Budgeted sales in units 11,900Add desired ending inventory* 3,240Total needs 15,140Less beginning inventory** 3,570Required production 11,570​ *June sales of 10,800 units × 30% = 3,240 units** May sales of 11,900 units × 30% = 3,570 unitsThe budgeted raw material purchases for May are computed as follows: Required production in units of finished goods 11,570Units of raw materials needed per unit of finished goods 6Units of raw materials needed to meet production 69,420Add desired units of ending raw materials inventory* 21,600Total units of raw materials needed 91,020Less units of beginning raw materials inventory** 20,826Units of raw materials to be purchased 70,194​ * 72,000 pounds × 30% = 21,600 pounds.** 69,420 pounds × 30% = 20,826 pounds.The budgeted cost of raw material purchases for May is computed as follows: Units of raw materials to be purchased (a) 70,194Unit cost of raw materials (b)$5.00Cost of raw materials to be purchased (a) × (b)$350,970

Which of the following is true for the contribution margin ratio (assuming a single product)?

The contribution margin ratio multiplied by the selling price per unit equals the contribution margin per unit.

Catano Corporation pays for 60% of its raw materials purchases in the month of purchase and 40% in the following month. If the budgeted cost of raw materials purchases in July is $256,550 and in August is $278,050, then in August the total budgeted cash disbursements for raw materials purchases is closest to:

The estimated cash disbursements for materials purchases in August is computed as follows: July purchases: $256,550 × 60%$153,930August purchases: $278,050 × 40% 111,220Total cash disbursements$265,150

Bryans Corporation has provided the following data for its two most recent years of operation: Selling price per unit$53Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$13Direct labor$6Variable manufacturing overhead$5Fixed manufacturing overhead per year$36,000Selling and administrative expenses: Variable selling and administrative expense per unit sold$4Fixed selling and administrative expense per year$71,000 Year 1 Year 2Units in beginning inventory0 3,000Units produced during the year9,000 7,000Units sold during the year6,000 7,000Units in ending inventory3,000 3,000 The net operating income (loss) under variable costing in Year 1 is closest to:

Variable costing unit product cost: Year 1Direct materials$13Direct labor 6Variable manufacturing overhead 5Variable costing unit product cost$24 Variable costing income statement: Year 1Sales [(6,000 units sold × $53 per unit)] $318,000 Variable expenses: Variable cost of goods sold [(6,000 units sold × $24 per unit)]$144,000 Variable selling and administrative expense [(6,000 units sold × $4 per unit)] 24,000 168,000 Contribution margin 150,000 Fixed expenses: Fixed manufacturing overhead 63,000 Fixed selling and administrative expense 71,000 134,000 Net operating income $16,000

The following is for a single product: Per UnitPercent of SalesSelling price$140 100%Variable expenses 42 30%Contribution margin$98 70% The company is currently selling 6,000 units per month and fixed expenses are $490,000 per month. Management thinks it can increase sales by 5% by improving the the product. This requires a new component that would increase variable product cost by $5. If implemented, how much would this change expected net operating income?

decrease of $2,100 Unit sales (increase of 300 units)6,000 units6,300 unitsSales (at $140 per unit)$840,000 $882,000 Variable expenses (at $42 per unit and $47 per unit) 252,000 296,100 Contribution margin 588,000 585,900 Fixed expenses 490,000 490,000 Net operating income$98,000 $95,900 Overall net operating income will decrease by $2,100

A budget that is based on the actual activity of a period is known as a:

flexible budget

A budget that is based on the actual activity of a period is known as a:

flexible budget.

The usual starting point for a master budget is

the sales forecast or sales budget.

Which of the following is a reason why absorption costing income statements may be difficult to interpret:

they shift portions of fixed manufacturing overhead from period to period according to changing levels of inventories.