Refer to DCdesserts.com's activity-based flexible budget in Exhibit 11-11 Suppose that the company's activity in June...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Refer to DCdesserts.com's activity-based flexible budget in Exhibit 11-11 Suppose that the company's activity in June is described as follows: Process hours. Production runs New products tested Direct material handled (pounds) Required: 1. Determine the flexible budgeted cost for each item in the table below. 2-a. Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use the activity-based flexible budget. 2-b. Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use DCdesserts.com's conventional flexible budget (Exhibit 11-3). Complete this question by entering your answers in the tabs below. Req 1 Indirect material a. b. Utilities 9,000 12 30 40,000 Req 2A Determine the flexible budgeted cost for each item in the table below. c. Inspection d. Req 2B Test kitchen e. Material handling f. Total overhead cost DC4 desserts DCDESSERTS.COM Budgeted Cost Nonstick cooking spray Waxed paper Other paper products Monthly Flexible Overhead Budget Cost Pool I (cost driver: process hours) Indirect material: Miscellaneous supplies Indirect labor: maintenance Utilities: Electricity Natural gas Total of cost pool I Cost Pool II (cost driver: production runs) Indirect labor: Inspection Setup Total of cost pool II Cost Pool III (cost driver: new products tested) Test kitchen Total of cost pool III Cost Pool IV (cost driver: pounds of material handled) Material handling Total of cost pool IV Cost Pool V (facility level costs) Indirect labor: production supervisors Depreciation: plant and equipment Insurance and property taxes Total of cost pool V Total overhead cost Total overhead cost Level of Activity 6,000 7,500 $12,000 2,000 2,000 6,000 4.000 3,000 1,000 $30,000 8 $ 2.200 3,000 $ 5,200 20 $ 1.200 $ 1.200 20,000 $ 2.000 $ 2,000 $15,000 2,500 2.500 7,500 5.000 3.750 1.250 $37.500 12 $ 3.300 4,500 $ 7.800 30 $ 1.800 $ 1.800 30,000 $ 3.000 $ 3,000 9,000 $18,000 3,000 3.000 9.000 6.000 4.500 1,500 $45.000 16 $ 4.400 6,000 $10.400 40 $ 2,400 $ 2.400 40,000 $ 4.000 $ 4,000 $ 6,000 $ 6,000 $ 6,000 500 500 500 100 100 100 $ 6,600 $ 6,600 $ 6.600 $45,000 $56.700 $68,400 $45,000 356,700 $68,400 Refer to DCdesserts.com's activity-based flexible budget in Exhibit 11-11 Suppose that the company's activity in June is described as follows: Process hours. Production runs New products tested Direct material handled (pounds) Required: 1. Determine the flexible budgeted cost for each item in the table below. 2-a. Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use the activity-based flexible budget. 2-b. Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000. Use DCdesserts.com's conventional flexible budget (Exhibit 11-3). Complete this question by entering your answers in the tabs below. Req 1 Indirect material a. b. Utilities 9,000 12 30 40,000 Req 2A Determine the flexible budgeted cost for each item in the table below. c. Inspection d. Req 2B Test kitchen e. Material handling f. Total overhead cost DC4 desserts DCDESSERTS.COM Budgeted Cost Nonstick cooking spray Waxed paper Other paper products Monthly Flexible Overhead Budget Cost Pool I (cost driver: process hours) Indirect material: Miscellaneous supplies Indirect labor: maintenance Utilities: Electricity Natural gas Total of cost pool I Cost Pool II (cost driver: production runs) Indirect labor: Inspection Setup Total of cost pool II Cost Pool III (cost driver: new products tested) Test kitchen Total of cost pool III Cost Pool IV (cost driver: pounds of material handled) Material handling Total of cost pool IV Cost Pool V (facility level costs) Indirect labor: production supervisors Depreciation: plant and equipment Insurance and property taxes Total of cost pool V Total overhead cost Total overhead cost Level of Activity 6,000 7,500 $12,000 2,000 2,000 6,000 4.000 3,000 1,000 $30,000 8 $ 2.200 3,000 $ 5,200 20 $ 1.200 $ 1.200 20,000 $ 2.000 $ 2,000 $15,000 2,500 2.500 7,500 5.000 3.750 1.250 $37.500 12 $ 3.300 4,500 $ 7.800 30 $ 1.800 $ 1.800 30,000 $ 3.000 $ 3,000 9,000 $18,000 3,000 3.000 9.000 6.000 4.500 1,500 $45.000 16 $ 4.400 6,000 $10.400 40 $ 2,400 $ 2.400 40,000 $ 4.000 $ 4,000 $ 6,000 $ 6,000 $ 6,000 500 500 500 100 100 100 $ 6,600 $ 6,600 $ 6.600 $45,000 $56.700 $68,400 $45,000 356,700 $68,400
Expert Answer:
Answer rating: 100% (QA)
Solution Req1 Statement of activity wise and total overhead c... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Suppose that the company in your answer to step 5 has requested your team implement your idea on reducing the impact of lying. Explain how having strong personal skills for each of Reichs four...
-
Suppose that the company assigns prior probabilities of .3, .5, and .2 to low, moderate, and high demands, respectively. a. Find the expected monetary value for each alternative (small, medium, and...
-
Suppose that the company assigns prior probabilities of .3, .5, and .2 to low, moderate, and high demands, respectively. a. Find the expected monetary value for each alternative (small, medium, and...
-
Fill in the missing mass number and atomic number for each of these particles or types of radiation. alpha (?) He beta (?) e gamma y neutron n
-
1. A cart on wheels weighs 2400 N. The coefficient of rolling friction between the wheels and floor is 0.16. What force is needed to keep the cart rolling uniformly? 2. A wooden crate weighs 780 lb....
-
Bill plans to open a self-serve grooming center in a storefront. The grooming equipment will cost $265,000, to be paid immediately. Bill expects aftertax cash inflows of $59,000 annually for seven...
-
What the differences are between civil litigation and other types of litigation
-
George Hunting Lodge has the following internal control procedures over cash disbursements. Identify the internal control principle that is applicable to each procedure. 1. Company checks are...
-
Find (x+3)(x-2)dx Question Help: Video + C
-
Publishing Company, Inc. ("P") is a publicly traded C corporation engaged in the publication of professional textbooks. P has 5 million shares of voting common stock outstanding. The stock is...
-
5. Compute the initial value of a forward-starting swap that begins at t=1, with maturity t = 10 and a fixed rate of 4.5%. (The first payment then takes place at t = 2 and the final payment takes...
-
Mr . Smith qualifies for homestead exemption. He is a widower and has an additional exemption because he is blind. The county millage rate is 7 3 / 4 mills, the city millage rate is 6 1 / 2 mills,...
-
ABC plc has a 10 million loan that is replaced every six months. To hedge against an expected increase in interest rates, ABC plc opens a position in short sterling interest rate futures at a price...
-
The future value of a sum increases as you increase the time to the future. Question 10Answer a. True b. False
-
Cost and Amortization of Intangible Assets On January 2, Frazier Company purchased a restaurant franchise for $360,000. The terms of the franchise agreement allowed Frazier to have exclusive rights...
-
Please respond to each post adding to the conversation with viable information. Post 1 -The state of North Carolina defines blood alcohol concentration (BAC) level as the measurement of the amount of...
-
Walsh, CFA, is the Chief Financial Officer of True Tech Corporation, a leading semiconductor manufacturer in the United States. For the past few months, Walsh has led the True Tech team in talks to...
-
How can NAFTA be beneficial to suppliers of Walmart?
-
Give an example of an irrelevant future cost. Why is it irrelevant?
-
Are allocated joint processing costs relevant when making a decision to sell a joint product at the split-off point or process it further? Why?
-
Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the automobile industry. The following data have been compiled for the month of June. Conversion...
-
Which of the following is not true in relation to leases? (a) An operating lease is where the lessee effectively retains the risks and rewards of owning an asset. (b) An operating lease is where the...
-
Which of the following is true with regard to contingent liabilities? (a) Can be measured reliably. (b) Are recognised in the statement of financial position. (c) Are disclosed in the notes to the...
-
The entry to account for the lease payment accrual at the end of the period in the records of the lessee would be: (a) No accrual required, the transaction would be recorded on the date the lease...
Study smarter with the SolutionInn App