Accounting 206 Study

ABC Company planned to use 1 yard of plastic per unit budgeted at $90 a yard. However, the plastic actually cost $85 per yard. The company actually made 3,900 units, although it had planned to make only 3,300 units. Total yard used for production were 3,960. How much is the total materials variance?

$14,400 favorable

ABC Company has: Variable manufacture costs: $60,000 Variable selling and administrative costs: $30,000 Fixed manufacturing costs: $180,000 Fixed selling and administrative costs: $150,000 Investment: $1,250,000 ROI: 45% Planned production sales: 10,000 units Based on the information above, what is the target selling price per unit?

$98.25

In producing product ABC 6,500 pounds of direct materials were used at a cost of $1.10 per pound. The standard was 6,000 pounds at $1.00 per pound. The direct materials total variance is:

1,150 unfavorable

normal standards

Standards based on an efficient level of performance that are attainable under expected operating conditions

ideal standards

Standards based on the optimum level of performance under perfect operating conditions.

variance

the difference between total actual costs and total standard costs.

transfer price

the price used to record the transfer of goods between tow divisions of a company.

ABC Company determines that 50,000 pounds of direct materials are needed for production in July. There are 8,000 pounds of direct materials on hand at July 1 and the desired ending inventory is 12,000 pounds. If the cost per unit of direct materials is $2, what is the budgeted total cost of direct materials purchases?

$108,000

At ABC Company, indirect labor is budgeted for $80,000 and factory supervision is budgeted for $30,000 at normal capacity of 120,000 direct labor hours. If 140,000 direct labor hours are worked, flexible budget total for these costs is

$123,333

ABC Company estimates that unit sales will be 10,000 in quarter 1; 12,000 in quarter 2; 15,000 in quarter 3; and 18,000 in quarter 4. Using a sales price of $50 per unit, calculate annual sales in units and dollar values.

$2,750,000 55,000 units

The ABC Company has the following information: Variable costs: #350,000 Fixed costs: $850,000 ROI: 15% Investment: $1,000,000 Sales: 50,000 units What is the target selling price per unit?

$27

ABC Company has received a shipment of shoes that cost $220 each. If the company uses cost-plus pricing and applies a markup percentage of 70%, what is the sales price?

$374

ABC Company sells widgets. Projected sales are $400,000 (or 80,000 units) and desired profit is $60,000. What is the target cost per unit?

$4.25

ABC Company's budgeted manufacturing costs for 20,000 units are: Fixed manufacturing costs: $10,000 Variable manufacturing costs: $12.00 per unit ABC produced 40,000 squares of shingles during May. How much are budgeted total manufacturing costs in May?

$490,000

ABC Company standard quantities for 1 unit of product include 2 pounds of materials and 1.5 labor hours. The standard rates are $3 per pound and $20 per hour. The standard overhead rate is $10 per direct labor hour. The total standard cost one unit is

$51

ABC Company has: Variable manufacture costs: $60,000 Variable selling and administrative costs: $30,000 Fixed manufacturing costs: $180,000 Fixed selling and administrative costs: $150,000 Investment: $1,250,000 ROI: 45% Planned production sales: 10,000 units What is the desired ROI per unit?

$56.25

The following information is available for ABC Company's anticipate annual volume of 500,000 units. Direct materials: $10 Direct labor: $15 Variable manufacturing overhead: $22 Fixed manufacturing overhead:$3,000,000 Variable selling and administrative expenses: $11 Fixed selling and administrative expenses: $1,500,000 The company has a desired ROI of 25%. It has invested assets of $30,000,000. Compute the target selling price.

$82

ABC Company produces units. The following per unit cost information is available: direct materials $10; direct labor $12; variable manufacturing overhead $5; fixed manufacturing overhead $18; variable selling and administrative expenses $7; and fixed selling and administrative expenses $13. Using a 30% markup percentage on total per unit cost, compute the target selling price.

$84.50

static budget

A projection of budget data at one level of activity

ABC Company produces a product that requires 2.3 pounds of materials per unit. The allowance for waste and spoilage per unit is .3 pounds and .1 pounds, respectively. The hourly wage rate is $12.00 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, ad the allowance for the rest periods and setup is .1 hours and .1 hours, respectively. Based on the information above, what is the standard direct labor hours per unit?

1.2

Sales budget data for ABC Company are given above. Management desires to have an ending finished goods inventory equal to 20% of the next quarter's expected unit sales. What is the required production for the second quarter?

12,600 units

At ABC Company, direct labor is $30 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2014, direct labor totaling $204,000 is incurred in working 12,400 hours. Using a flexible budget report, what is the difference between actual and budget?

168,000 favorable

ABC Company produces a product that requires 2.3 pounds of materials per unit. The allowance for waste and spoilage per unit is .3 pounds and .1 pounds, respectively. The hourly wage rate is $12.00 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 1 hour per unit, ad the allowance for the rest periods and setup is .1 hours and .1 hours, respectively. The standard direct materials quantity per unit is

2.7

ABC Company plans to sell 5,000 units during January 4,800 in February, and 5,200 during March. The company keeps 15% of the next month's sales as ending inventory. How many units should ABC Company produce during February?

4,860 units

If there were 80,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 480,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

520,000

The following information is taken from the production budget for the first quarter: Beginning inventory in units: 21,200 Sales budgeted for the quarter: 825,000 Capacity in units of production facility: 990,000 How many finished goods units should be produced during the quarter if the company desires 25,500 units available to start the next quarter?

829,300 units

flexible budget

a projection of budget data for various levels of activity