The controller of Leslie Corporation prepared the following forecast income statement for the year: The product's manufacturing
Question:
The product's manufacturing processes require two producing departments, which make use of the services of the Maintenance Department and the Janitorial Department. To charge the products moving through the two departments, the cost accountant has prepared an overhead distribution sheet and calculated predetermined factory overhead rates as follows:
Actual hours and costs at the end of the month are as follow:
Maintenance Department cost was allocated to the two producing departments on the basis of actual direct labor hours worked. Janitorial Department cost was prorated 50% to the factory producing departments and 50% to marketing and administrative expense. The Machining Department and the Assembly shared the factory allocation of Janitorial Department cost on a 40:60 basis, respectively. For January, the Planning Department scheduled 5,000 units of product to be completed. At the end of the month, sales and production achieved the following results:
Sales .........................................................................4,900 units
Production-completed in both departments ..........................5,200 units
Required:
(1) Compute the budget allowance for each producing department for January, based on (a) scheduled production hours and (b) actual production hours.
(2) Compute spending and idle capacity variances for each producing department, based on actual production hours.
(3) Compute the spending variance for each service department. Round all amounts to three decimal places.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Step by Step Answer: