Landers Company manufactures a number of products. The standards relating to one of these products are...
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Landers Company manufactures a number of products. The standards relating to one of these products are shown below: Iпрuts Standard Quantity Standard Price Direct materials 4.5 pounds $0.80 per pound Direct labor 1.50 hours $20.00 per hour Variable manufacturing overhead 1.50 hours $10.00 per hour To prepare the budgets of 2021, the following information is provided: Data 2021 Quarter 2022 Quarter 1 3 4 1 Budgeted unit sales 50,000 50,000 90,000 60,000 80,000 80,000 • Selling price per unit • Desired ending finished goods inventory is • Finished goods inventory, 1 Jan 2021 • Desired ending inventory of raw materials • Raw materials inventory, beginning • Raw materials purchases are paid $60 35% of the budgeted unit sales of the next quarter 13,000 units 10% of the next quarter's production needs 23,000 pounds 70% in the quarter the purchases and 30% in the quarter following purchase • Accounts payable, 1 Jan 2021 $90,000 To evaluate the performance of the first quarter in 2021, the results follow: Actual output 55,000 units Actual variable manufacturing overhead cost $902,000 Actual Quantity 249,000 pounds 251,050 pounds Actual price $0.75 per pound $0.75 per pound Actual direct materials cost (used) Actual direct materials cost (purchased) Actual direct labor cost 82,000 hours $22.00 per hour 2 Required: 1. Prepare the sales budget, production budget, raw materials purchase budget and the schedule of expected cash payments for each quarter and the total for the year 2021. (Budgets are prepared according to the standard quantity and price of raw materials.) 2. Compute the total standard cost per unit and total actual cost per unit for the first quarter in 2021. How much is the difference between the actual unit costs and standard cost? 3. Compute the following variances for the first quarter of 2021: a. Materials quantity and price variances. b. Labor efficiency and rate variances. с. Variable overhead efficiency and rate variances. Landers Company manufactures a number of products. The standards relating to one of these products are shown below: Iпрuts Standard Quantity Standard Price Direct materials 4.5 pounds $0.80 per pound Direct labor 1.50 hours $20.00 per hour Variable manufacturing overhead 1.50 hours $10.00 per hour To prepare the budgets of 2021, the following information is provided: Data 2021 Quarter 2022 Quarter 1 3 4 1 Budgeted unit sales 50,000 50,000 90,000 60,000 80,000 80,000 • Selling price per unit • Desired ending finished goods inventory is • Finished goods inventory, 1 Jan 2021 • Desired ending inventory of raw materials • Raw materials inventory, beginning • Raw materials purchases are paid $60 35% of the budgeted unit sales of the next quarter 13,000 units 10% of the next quarter's production needs 23,000 pounds 70% in the quarter the purchases and 30% in the quarter following purchase • Accounts payable, 1 Jan 2021 $90,000 To evaluate the performance of the first quarter in 2021, the results follow: Actual output 55,000 units Actual variable manufacturing overhead cost $902,000 Actual Quantity 249,000 pounds 251,050 pounds Actual price $0.75 per pound $0.75 per pound Actual direct materials cost (used) Actual direct materials cost (purchased) Actual direct labor cost 82,000 hours $22.00 per hour 2 Required: 1. Prepare the sales budget, production budget, raw materials purchase budget and the schedule of expected cash payments for each quarter and the total for the year 2021. (Budgets are prepared according to the standard quantity and price of raw materials.) 2. Compute the total standard cost per unit and total actual cost per unit for the first quarter in 2021. How much is the difference between the actual unit costs and standard cost? 3. Compute the following variances for the first quarter of 2021: a. Materials quantity and price variances. b. Labor efficiency and rate variances. с. Variable overhead efficiency and rate variances.
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Sales budget 2021 1st 2nd 3rd 4th Budgeted Unit sale 50000 50000 90000 60000 Selling price Per unit 60 60 60 60 Total Revenue 3000000 3000000 5400000 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
Posted Date:
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