Question: Please help me with this question, all wrong places needed. Appreciate The following predictions were made in the prior year for one of the plants
Please help me with this question, all wrong places needed. Appreciate
The following predictions were made in the prior year for one of the plants of Windsor Inc.
PredictionsTotal fixed overhead for the year$Units produced for the year, theoretical capacityUnits produced for the year, practical capacityUnits produced for the year, normal capacity
Actual results for the month of January were as follows.
Actual ResultsUnits soldUnits produced
Assume a sales price per unit of $ and fixed selling and administrative expenses of $ Cost of goods sold at standard is $ $ and $ at theoretical, practical, and normal capacity, respectively.
a Calculate the budgeted FOH rate based upon theoretical, practical, and normal capacity.
NumeratorDenominatorResultAnswer Actual units producedActual units soldBudgeted fixed overheadBudgeted unitsCost of goods soldTotal fixed overhead
Answer Actual units producedActual units soldBudgeted fixed overheadBudgeted unitsCost of goods soldTotal fixed overhead
FOH rateTheoretical capacityAnswer
Answer
Practical capacityAnswer
Answer
Capacity measurements; beforetax profit
The following predictions were made in the prior year for one of the plants of Windsor Inc.
Actual results for the month of January were as follows.
Assume a sales price per unit of $ and fixed selling and administrative expenses of $ Cost of goods sold at standard is $$ and $ at theoretical, practical, and normal capacity,
respectively.
a Calculate the budgeted FOH rate based upon theoretical, practical, and normal capacity.
b What is the volume variance in January, if the budgeted FOH rate is based upon theoretical, practical, and normal capacity? Use the FOH rates exactly as shown above in part a Assume that budgeted FOH is
incurred evenly throughout the year.
Note: Enter any unfavorable variances with a negative sign.
c Determine beforetax profit at theoretical, practical, and normal capacity.
Note: Only use a negative sign with any volume variance that is subtracted to arrive at Cost of Goods Sold, adjusted.
d Reconcile the difference between beforetax profit at theoretical and practical capacity.
Note: Do not use negative signs with any of your answers below.
The difference equals the change in inventory
x times the difference in
$
Reconcile the difference between beforetax profit at practical and normal capacity.
The difference equals the change in inventory
times the difference in
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