mor Corporation: Production Budget For the Period Ended December 31, 20x5 Budgeted production volume: Product A...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
mor Corporation: Production Budget For the Period Ended December 31, 20x5 Budgeted production volume: Product A Product B Total production for the period Budgeted production costs: Direct technology: Product A Product B Activity cost pools: Purchasing Quality control Maintenance Warehousing Expediting Total production costs ACTIVITY Purchasing Quality control - Maintenance Following are the budgeted data for the Stor- Warehousing Expediting $20,000 80,000 $25,000 30,000 5,000 75,000 30,000 100,000 units 200,000 units 300,000 units Direct materials costs are not included in the production budget. Also, because Stormor is highly automated and all labor is handled as indirect labor, a direct labor cost element is not included in the budget. Direct technology runs at 80 units per hour to produce product A and 40 units per hour to make product B. Product A requires 1,250 hours of machine time per year, and product B requires 5,000 hours. Direct technology costs are assigned to the products on the basis of machine hours.Activity drivers for Stormor's ABC system follow: $100,000 165,000 $265,000 ACTIVITY DRIVER Number of purchase orders per 1,000 units of fin- ished product Number of hours of quality testing per 1,000 units of finished product Number of hours of equipment maintenance per 100 hours of machine time Number of units of finished product per pallet Number of units of finished product PRODUCT A 10.0 10.0 4.0 40.0 100,000 PRODUCT B 7.5 2.5 1.5 40.0 200,000 a. Prepare a bill of activities for product A and product B as of December 31, 20x5, assuming that the budgeted amounts are the actual amounts. b. Following are the actual production data for the period: PRODUCT A Production volume Direct technology Purchasing Quality control Maintenance Warehousing Expediting.. Total actual costs 110,000 Units $ 30.000 12,000 21,000 2,400 27,000 13,200 $105,600 PRODUCT 13 180,000 Units $ 62,000 14,000 11,000 2,200 44,000 18,000 $151,200 Prepare two bills of activities (including direct technology), one for product A and one for product B, showing the standard product costs (i.e., those established by the budget) adjusted to actual costs per unit. mor Corporation: Production Budget For the Period Ended December 31, 20x5 Budgeted production volume: Product A Product B Total production for the period Budgeted production costs: Direct technology: Product A Product B Activity cost pools: Purchasing Quality control Maintenance Warehousing Expediting Total production costs ACTIVITY Purchasing Quality control - Maintenance Following are the budgeted data for the Stor- Warehousing Expediting $20,000 80,000 $25,000 30,000 5,000 75,000 30,000 100,000 units 200,000 units 300,000 units Direct materials costs are not included in the production budget. Also, because Stormor is highly automated and all labor is handled as indirect labor, a direct labor cost element is not included in the budget. Direct technology runs at 80 units per hour to produce product A and 40 units per hour to make product B. Product A requires 1,250 hours of machine time per year, and product B requires 5,000 hours. Direct technology costs are assigned to the products on the basis of machine hours.Activity drivers for Stormor's ABC system follow: $100,000 165,000 $265,000 ACTIVITY DRIVER Number of purchase orders per 1,000 units of fin- ished product Number of hours of quality testing per 1,000 units of finished product Number of hours of equipment maintenance per 100 hours of machine time Number of units of finished product per pallet Number of units of finished product PRODUCT A 10.0 10.0 4.0 40.0 100,000 PRODUCT B 7.5 2.5 1.5 40.0 200,000 a. Prepare a bill of activities for product A and product B as of December 31, 20x5, assuming that the budgeted amounts are the actual amounts. b. Following are the actual production data for the period: PRODUCT A Production volume Direct technology Purchasing Quality control Maintenance Warehousing Expediting.. Total actual costs 110,000 Units $ 30.000 12,000 21,000 2,400 27,000 13,200 $105,600 PRODUCT 13 180,000 Units $ 62,000 14,000 11,000 2,200 44,000 18,000 $151,200 Prepare two bills of activities (including direct technology), one for product A and one for product B, showing the standard product costs (i.e., those established by the budget) adjusted to actual costs per unit.
Expert Answer:
Answer rating: 100% (QA)
To prepare the bills of activities for products A and B well first calculate the standard product costs per unit based on the budgeted data Then well adjust these standard costs to actual costs per un... View the full answer
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt
Posted Date:
Students also viewed these accounting questions
-
1. A firm consists of 600 acres of land, of which 500 acres will be planted with corn, soybeans, and wheat according to this condition: -At least half of the planted acreage should be in corn - No...
-
Bertha's Bathworks produces hair and bath products. Its biggest customer is a national retail chain that specializes in such products. Bertha Jackson, the owner of Bertha's Bathworks, would like to...
-
The East Division of Kensic Company manufactures a vital component that is used in one of Kensics major product lines. The East Division has been experiencing some difficulty in coordinating...
-
What do we really learn from studying how managers actually spend their time and their decision-making powers in like-for-like organisations in different countries? What are the messages for key...
-
A high-speed computer is located in a temperature controlled room of 26?C. When the machine is operating its internal heat generation rate is estimated to be 800 W. The external surface temperature...
-
Roadside Travel Court was organized on July 1, 2024, by Betty Johnson. Betty is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Betty prepared the...
-
Quilts R Us (QRU) is considering investing in a new patterning attachment with the cash flow profile shown in the table below. QRU's MARR is 13.5 percent/year. a. What is the internal rate of return...
-
Jalapenos! is based in Pleasant Hill, California. The merchandising company has three divisions: Clothing, Food, and Spices. The Clothing division has two main product lines: T-shirts and...
-
You would like your retirement fund to have 450,000$ after 32 years. The bank offers you an APR of 2.6%, compounded quarterly. How much should your quarterly deposits be in order to reach that goal?...
-
Create a new C++ project titled "CIS22A Lab 5" in the CodeBlocks IDE. Use the "Console Application project option. Use loop to approximate the Pl value In the 14th century, Babylonian mathematicians...
-
DeRue, Barnes, and Morgeson (2010) found that team leadership style effectiveness depended on the level of charisma exhibited by the leader. Drawing from the article, have you ever worked for a...
-
Writing with Confidence. Revise the following sentences to eliminate doubtful tone and tentativeness. Sample: I'm sorry to have to ask you when we might receive our new software. Revision: Please...
-
Using Trig Values To Find Other Values Task #1: cot = -4; sec > 0 Find: sin , cos , tan , csc , sec Task #2: csc = -5 /2; cos < 0 Find: sin , cos , tan , sec , cot
-
Recognize the Need for Plain, Precise, and Current Language 1. Using Familiar Words. Read the following sentences and replace long and unfamiliar words, . jargon, and noun phrases with plain English...
-
One powerful tool for enculturation is the mass media. This week, watch and analyze your favorite television shows/ and or "printed" advertisements (at least 3) for their cultural and gender...
-
If x(x+1) greater than 0, does it follow that x is positive? If no give an example
-
1. (6pts) Prove that 24 divides n(n-1)(n+1)(n+2) for all integer n.
-
Write a declaration for each of the following: a. A line that extends from point (60, 100) to point (30, 90) b. A rectangle that is 20 pixels wide, 100 pixels high, and has its upper-left corner at...
-
Time Saver Meals, Inc., offers monthly service plans providing prepared meals that are delivered to the customers homes. The target market for these meal plans includes double-income families with no...
-
Refer to the data in the preceding problem for Nantucket Marine Supply. In the preceding problem, Nantucket Marine Supply is a wholesaler for a large variety of boating and fishing equipment. The...
-
Ontario Pump Company, a small manufacturing company in Toronto, Ontario, manufactures three types of pumps used in a variety of applications. For many years the company has been profitable and has...
-
Orvil Companys net profit margin percentage is 4.5%, its total asset turnover is 2.4, and its equity multiplier is 1.5. What is the companys return on equity? a. 2.8% b. 7.2% c. 16.2% d. 10.7%
-
Obtain the most recent annual report or SEC filing 10-K of a publicly traded company that interests you. It may be a local company or it may be a company in an industry that you would like to know...
-
Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the...
Study smarter with the SolutionInn App