# acct 212 homework 7 chapter23 acct 212 homework 7 chapter23

Question

acct 212 homework 7 chapter23
acct 212 homework 7 chapter23

Don't use plagiarized sources. Get Your Custom Essay on
acct 212 homework 7 chapter23 acct 212 homework 7 chapter23
Just from \$13/Page

acct 212 homework 7 chapter23

1.

award:
5 out of
5.00 points

Exercise 24-1 Preparation of flexible budgets L.O. P1

Mesa Company’s fixed budget for the first quarter of calendar year 2011 reveals the following.

Sales (12,500 units)

\$

2,637,500

Cost of goods sold

Direct materials

\$

311,125

Direct labor

526,000

Production supplies

332,625

Plant manager salary

111,125

1,280,875

Gross profit

1,356,625

Selling expenses

Sales commissions

94,000

Packaging

177,625

100,000

371,625

161,125

Depreciation—office equip.

131,125

Insurance

101,125

Office rent

111,125

504,500

Income from operations

\$

480,500

Prepare flexible budgets that show variable costs per unit, fixed costs, and three different flexible budgets for sales volumes of 10,500, 12,500, and 15,500 units. (Input all amounts as positive values. Round your “Variable amount per unit” to 2 decimal places. Omit the “\$” sign in your response.)

2.

award:
3 out of
3.00 points

Exercise 24-3 Preparation of a flexible budget performance report L.O. P1

Cimarron Company’s fixed budget performance report for July follows. The \$653,000 budgeted expenses include \$613,820 variable expenses and \$39,180 fixed expenses. Actual expenses include \$51,180 fixed expenses.

Fixed Budget

Actual Results

Variances

Sales (in units)

8,700

11,100

Sales (in dollars)

\$

870,000

\$

1,110,000

\$

240,000

F

Total expenses

653,000

783,600

130,600

U

Income from operations

\$

217,000

\$

326,400

\$

109,400

F

Prepare a flexible budget performance report showing any variances between budgeted results and actual results. List fixed and variable expenses separately. (Input all amounts as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Leave no cells blank – be certain to enter “0” wherever required. Do not round your intermediate calculations and round your final answers to the nearest dollar amount. Omit the “\$” sign in your response.)

Worksheet

Difficulty: Medium

Exercise 24-3 Preparation of a flexible budget performance report L.O. P1

Learning Objective: 24-P1 Prepare a flexible budget and interpret a flexible budget performance report.

3.

award:
3 out of
3.00 points

Exercise 24-4 Preparation of a flexible budget performance report L.O. P1

Daytec Company’s fixed budget performance report for June follows. The \$594,000 budgeted expenses include \$450,000 variable expenses and \$144,000 fixed expenses. Actual expenses include \$134,000 fixed expenses.

Fixed Budget

Actual Results

Variances

Sales (in units)

8,100

7,000

Sales (in dollars)

\$

648,000

\$

623,000

\$

25,000

U

Total expenses

594,000

563,000

31,000

F

Income from operations

\$

54,000

\$

60,000

\$

6,000

F

Prepare a flexible budget performance report that showing any variances between budgeted and actual results. List fixed and variable expenses separately. (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations and round final answers to the nearest dollar amount. Omit the “\$” sign in your response.)

Worksheet

Difficulty: Medium

Exercise 24-4 Preparation of a flexible budget performance report L.O. P1

Learning Objective: 24-P1 Prepare a flexible budget and interpret a flexible budget performance report.

4.

award:
2 out of
2.00 points

Exercise 24-5 Computation and interpretation of labor variances L.O. P2

After evaluating Zero Company’s manufacturing process, management decides to establish standards of 1.5 hours of direct labor per unit of product and \$21 per hour for the labor rate. During October, the company uses 5,450 hours of direct labor at a \$119,900 total cost to produce 3,700 units of product. In November, the company uses 5,300 hours of direct labor at a \$113,950 total cost to produce 3,800 units of product.

(1)

Compute the rate variance, the efficiency variance, and the total direct labor cost variance for each of these two months. (Input all amounts as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Leave no cells blank – be certain to enter “0” wherever required. Round your intermediate calculations to 2 decimal places and round your final answers to the nearest dollar amount.Omit the “\$” sign in your response.)

rev: 12_15_2012

Worksheet

Difficulty: Medium

Exercise 24-5 Computation and interpretation of labor variances L.O. P2

Learning Objective: 24-P2 Compute materials and labor variances.

Exercise 24-7A Computation and interpretation of overhead spending, efficiency, and volume variances L.O. P3

[The following information applies to the questions displayed below.]

Sonic Company set the following standard costs for one unit of its product for 2011.

Direct material (16 Ibs. @ \$3.10 per Ib.)

\$

49.60

Direct labor (12 hrs. @ \$7.30 per hr.)

87.60

Factory variable overhead (12 hrs. @ \$1.60 per hr.)

19.20

Factory fixed overhead (12 hrs. @ \$0.46 per hr.)

5.52

Standard cost

\$

161.92

The \$2.06 (\$1.60 + \$0.46) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory’s capacity of 47,000 units per month. The following monthly flexible budget information is also available.

Operating Levels (% of capacity)

70%

75%

80%

Budgeted output (units)

32,900

35,250

37,600

Budgeted labor (standard hours)

394,800

423,000

451,200

\$

631,680

\$

676,800

\$

721,920

194,580

194,580

194,580

\$

826,260

\$

871,380

\$

916,500

During the current month, the company operated at 70% of capacity, employees worked 371,800 hours, and the following actual overhead costs were incurred.

\$

586,180

203,708

\$

789,888

Section Break

Difficulty: Medium

Exercise 24-7A Computation and interpretation of overhead spending, efficiency, and volume variances L.O. P3

Learning Objective: 24-P3 Compute overhead variances.

5.

award:
2 out of
2.00 points

Exercise 24-7 Part 1

1.

Compute variable overhead spending and efficiency variances. (Input all amounts as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Leave no cells blank – be certain to enter “0” wherever required. Omit the “\$” sign in your response.)

Worksheet

Difficulty: Medium

Exercise 24-7 Part 1

Learning Objective: 24-P3 Compute overhead variances.

6.

award:
2 out of
2.00 points

Exercise 24-7 Part 2

2.

Compute Fixed overhead spending and volume variances. (Input all amounts as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Leave no cells blank – be certain to enter “0” wherever required. Omit the “\$” sign in your response.)

Worksheet

Difficulty: Medium

Exercise 24-7 Part 2

Learning Objective: 24-P3 Compute overhead variances.

7.

award:
1 out of
1.00 point

Exercise 24-7 Part 3

3.

Compute controllable variance. (Input all amounts as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Leave no cells blank – be certain to enter “0” wherever required. Omit the “\$” sign in your response.)

Worksheet

Difficulty: Medium

Exercise 24-7 Part 3

Learning Objective: 24-P3 Compute overhead variances.

8.

award:
2 out of
2.00 points

Exercise 24-8 Computation and interpretation of materials variances L.O. P2

BTS Company made 4,400 bookshelves using 22,400 board feet of wood costing \$273,280. The company’s direct materials standards for one bookshelf are 10 board feet of wood at \$12 per board foot.

(1)

Compute the direct materials variances incurred in manufacturing these bookshelves. (Input all amounts as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Leave no cells blank – be certain to enter “0” wherever required. Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount. Omit the “\$” sign in your response.)

Worksheet

Difficulty: Medium

Exercise 24-8 Computation and interpretation of materials variances L.O. P2

Learning Objective: 24-P2 Compute materials and labor variances.

9.

award:
3 out of
3.00 points

Exercise 24-9A Materials variances recorded and closed L.O. P4

BTS Company made 7,900 bookshelves using 89,900 board feet of wood costing \$539,400. The company’s direct materials standards for one bookshelf are 13 board feet of wood at \$6.10 per board foot. BTS Company records standard costs in its accounts and its material variances in separate accounts when it assigns materials costs to the Goods in Process Inventory account.

(1)

Show the journal entry that both charges the direct materials costs to the Goods in Process Inventory account and records the materials variances in their proper accounts. (Do not round your intermediate calculations. Omit the “\$” sign in your response.)

(2)

Assume that BTS’s material variances are the only variances accumulated in the accounting period and that they are immaterial. Prepare the adjusting journal entry to close the variance accounts at period-end. (Do not round your intermediate calculations. Omit the “\$” sign in your response.)

Worksheet

Difficulty: Medium

Exercise 24-9A Materials variances recorded and closed L.O. P4

Learning Objective: 24-P4 Appendix 24A-Prepare journal entries for standard costs and account for price and quantity variances.

10.

award:
1.60 out of
2.00 points

Exercise 24-10 Computation of total overhead rate and total overhead variance L.O. P3

Earth Company expects to operate at 60% of its productive capacity of 52,000 units per month. At this planned level, the company expects to use 26,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours. At the 60% capacity level, the total budgeted cost includes \$65,000 fixed overhead cost and \$291,200 variable overhead cost. In the current month, the company incurred \$314,000 actual overhead and 31,457 actual labor hours while producing 37,900 units.

(1)

(2)

Compute its total overhead variance. (Input the amount as positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Leave no cells blank – be certain to enter “0” wherever required. Round your intermediate calculations to two decimal places and final answer to the nearest dollar amount. Omit the “\$” sign in your response.)

Worksheet

Difficulty: Medium

Exercise 24-10 Computation of total overhead rate and total overhead variance L.O. P3

Learning Objective: 24-P3 Compute overhead variances.

1.

award:
2 out of
2.00 points

Exercise 24-11 Computation of volume and controllable overhead variances L.O. P3

Earth Company expects to operate at 80% of its productive capacity of 51,000 units per month. At this planned level, the company expects to use 30,600 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours. At the 80% capacity level, the total budgeted cost includes \$61,200 fixed overhead cost and \$306,000 variable overhead cost. In the current month, the company incurred \$330,000 actual overhead and 23,250 actual labor hours while producing 31,000 units.

(1)

Compute the overhead volume variance. (Input the amount as positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Leave no cells blank – be certain to enter “0” wherever required. Round your hours per unit to 2 decimal places. Omit the “\$” sign in your response.)

(2)

Compute the overhead controllable variance.(Input the amount as positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Leave no cells blank – be certain to enter “0” wherever required. Round your hours per unit to 2 decimal places. Omit the “\$” sign in your response.)

Worksheet

Difficulty: Medium

Exercise 24-11 Computation of volume and controllable overhead variances L.O. P3

Learning Objective: 24-P3 Compute overhead variances.

12.

award:
2 out of
2.00 points

Exercise 24-12 Computing and interpreting sales variances L.O. A1

Comp Wiz sells computers. During May 2011, it sold 600 computers at a \$700 average price each. The May 2011 fixed budget included sales of 650 computers at an average price of \$660 each.

(1)

Compute the sales price variance and the sales volume variance for May 2011. (Input all amounts as a positive value. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Leave no cells blank – be certain to enter “0” wherever required. Omit the “\$” sign in your response).

Worksheet

Difficulty: Medium

Exercise 24-12 Computing and interpreting sales variances L.O. A1

Learning Objective: 24-A1 Analyze changes in sales from expected amounts.

Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

## Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.