Chapter 7 (Topics 7.4 &7.5) Little Sluggers Inc., manufacturer of aluminum bats, estimates sales of 100,000 units for June 2021. Based on that level of sales, the total costs for the month are projected at: $900,000 300,000 130,000 Direct material costs Direct labor costs Variable overhead Fixed overhead 75,000 Variable selling & administrative 30,000 expenses Fixed selling & administrative expenses 25,000 The sales price per unit is $25. At the end of June, the company reviews their results to see that actual sales in units were 120,000 and total costs for the month were: direct materials of $780,000; direct labor of $480,000; variable overhead of $144,000, fixed overhead of $75,000, variable S&A of S24,000, and fixed S&A of $25,000. Required: 1.) Prepare the company's Actual vs. Flexible Budget Variance Report. Make sure to calculate variances and indicate if variances are favorable (F) or unfavorable (U). 2.) In your opinion, did the company perform well in controlling their costs? Support your opinion.

Chapter 7 (Topics 7.4 &7.5) Little Sluggers Inc., manufacturer of aluminum bats, estimates sales of 100,000 units for June 2021. Based on that level of sales, the total costs for the month are projected at: $900,000 300,000 130,000 Direct material costs Direct labor costs Variable overhead Fixed overhead 75,000 Variable selling & administrative 30,000 expenses Fixed selling & administrative expenses 25,000 The sales price per unit is $25. At the end of June, the company reviews their results to see that actual sales in units were 120,000 and total costs for the month were: direct materials of $780,000; direct labor of $480,000; variable overhead of $144,000, fixed overhead of $75,000, variable S&A of S24,000, and fixed S&A of $25,000. Required: 1.) Prepare the company's Actual vs. Flexible Budget Variance Report. Make sure to calculate variances and indicate if variances are favorable (F) or unfavorable (U). 2.) In your opinion, did the company perform well in controlling their costs? Support your opinion.

Name: Chapter 7 (Topics 7.4 &7.5)Little Sluggers Inc., manufacturer of alum
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Chapter 7 (Topics 7.4 &7.5)Little Sluggers Inc., manufacturer of aluminum bats, estimatessales of 100,000 units for June 2021. Based on that level ofsales, the total costs for the month are projected at:Direct material costs$900,000Direct labor cost

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

See similar textbooks

Similar questions

Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
Automatic Irrigation, Inc. is preparing its manufacturing overhead budget for the 2022 year. Relevant data consist of the following: Qtr. 4 Qtr. 1 Qtr. 2 Qtr. 3 Control Units to be produced (by quarters): 6,000 10,000 12,000 9,000 Direct labor time: 1 hour per unit Variable overhead costs per direct labor hour: Indirect Materials $0.90; Indirect Labor $1.40; and Maintenance $0.50. Fixed overhead costs per quarter: Supervisory salaries $27,600; depreciation $4,000; and maintenance $1,900. Required Prepare the manufacturing overhead budget for the 2022 year showing quarterly data.
Current Attempt in Progress Crane Company is planning to produce 1,400 units of product in 2022. Each unit requires 3.4 pounds of materials at $5.8 per pound and a half-hour of labor at $12 per hour. The overhead rate is 50% of direct labor. (a) Compute the budgeted amounts for 2022 for direct materials to be used, direct labor, and applied overhead. Direct materials $ Direct labor Overhead (b) $ Standard cost $ $ Compute the standard cost of one unit of product. (Round answer to 2 decimal places, e.g. 2.75.) Per Unit
Can somebody help me with this? The polishing department of Taylor Manufacturing Company operated during April 2019 with the following manufacturing overhead cost budget based on 4,000 hours of monthly productive capacity: TAYLOR MANUFACTURING COMPANYPolishing DepartmentOverhead Budget (4,000 hours)for the month of April 2019 Variable costs: Factory supplies $100,000 Indirect labor 152,000 Utilities (usage charge) 68,000 Patent royalties on secret process 296,000 Total variable overhead $616,000 Fixed costs: Supervisory salaries $160,000 Depreciation on factory equipment 144,000 Factory taxes 48,000 Factory insurance 32,000 Utilities (base charge) 80,000 Total fixed overhead $464,000 Total manufacturing overhead $1,080,000 The polishing department was operated for 4,600 hours during April and incurred the following manufacturing overhead costs: Factory…
Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape: Material (3.50 ounces at $1.30 per ounce) $4.55 Labor (0.30 hour at $12.00 per hour) 3.60 Overhead 2.40 Total $10.55 At the start of 2021, Scotch Brand planned to produce 80,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $64,000 and the variable overhead costs are budgeted at $1.60 per case. The following information summarizes the results for 2021: Actual production, 81,000 cases Purchased 275,000 ounces of material at a total cost of $343,750 Used 266,250 ounces of material in production Employees worked 22,000 hours, total labor cost $275,000 Actual overhead incurred,…
6 REQUIRED: 1. Prepare the factory overhead budget for May & June, 2021. Separate the fixed from the variable cost components. 2. Determine the unused normal capacity, if any.
Scotch Brand Products produces packaging tape and has determined the following to be its standard cost of producing one case of budget packaging tape: Material (3.50 ounces at $1.30 per ounce) $4.55 Labor (0.30 hour at $12.00 per hour) 3.60 Overhead 2.70 Total $10.85 At the start of 2021, Scotch Brand planned to produce 20,000 cases of tape during the year. Overhead is allocated based on the number of cases of tape produced. Annual fixed overhead is budgeted at $18,000 and the variable overhead costs are budgeted at $1.80 per case. The following information summarizes the results for 2021: Actual production, 21,000 cases Purchased 275,000 ounces of material at a total cost of $343,750 Used 266,250 ounces of material in production Employees worked 22,000 hours, total labor cost $275,000 Actual overhead incurred,…
QUESTION God’s Will Ent., GWT, started its business in 2021. The following information was available for January to March 31, 2021 for the company that started to produce a single product: GHȻSelling price per unit 200Direct materials per unit 40Direct Labour per unit 20Fixed factory overhead per month 60,000 Variable factory overhead per unit 10Fixed selling overheads…
Apex Corporation estimates that its production for the coming year will be 10,000 units with the following unit costs: Direct materials P40 Direct labor P60 Direct labor is paid at the rate of P24 per hour. The machine should be run for 20 minutes to produce one unit. Total estimated overhead is expected to consist of P400,000 for variable overhead and P400,000 for fixed overhead. What is the predetermined overhead rate based on direct labor cost? B D 113% 166% 133% 153%