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Costs & Budgets (202500-META-CPTG12114-EN)
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Ballina Corp. applies manufacturing overhead costs to products at a budgeted indirect‐cost rate of $60 per direct manufacturing labor‐hour. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order include direct materials of $50,000; 400 direct manufacturing labor‐hours at $20 per hour; and a 30% markup rate on total manufacturing costs.
QUESTION63. Estimated total product costs for this special order equal .
QUESTION46. Classifying a cost as either direct or indirect depends upon
QUESTION45. The determination of a cost as either direct or indirect depends upon the
Pasir Corporation used the following data to evaluate their current operating system. The company sells items for $18 each and used a budgeted selling price of $18 per unit.
|
Actual
|
Budgeted
|
Units sold
|
41,000 units
|
40,000 units
|
Variable costs
|
$164,000
|
$156,000
|
Fixed costs
|
$46,000
|
$48,000
|
QUESTION7. What is the static‐budget variance of revenues?
Mark Papers employs 15 full‐time employees and 10 trainees. Direct and indirect costs are applied on a professional labor‐hour basis that includes both employee and trainee hours. Following is information for 2023:
|
Budget
|
Actual
|
Indirect costs
|
$200,000
|
$300,000
|
Annual salary of each employee
|
$100,000
|
$110,000
|
Annual salary of each trainee
|
$ 25,000
|
$ 30,000
|
Total professional labor‐hours
|
50,000 dlh
|
60,000 dlh
|
QUESTION38. How much should a client be billed in a normal costing system when 1,000 professional labor‐hours are used?
The following information pertains to Woodburn Company:
Month
|
Sales
|
Purchases
|
January
|
$60,000
|
$32,000
|
February
|
$80,000
|
$40,000
|
March
|
$100,000
|
$56,000
|
∙ Cash is collected from customers in the following pattern: Month of sale 30%
Month following the sale 70%
∙ 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
∙ Labor costs are 20% of sales. Other operating costs are $30,000 per month (including $8,000 of depreciation). Both of these payments are made in the month incurred.
∙ The cash balance on March 1 is $8,000. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000.
QUESTION34. What is the ending cash balance for March?
Litte India Incorporated planned to use materials of $12 per unit but actually used materials of $13 per unit and planned to make 1,500 units but actually made 1,800 units.
QUESTION16. The sales‐volume variance for materials is:
Litte India Incorporated planned to use materials of $12 per unit but actually used materials of $13 per unit and planned to make 1,500 units but actually made 1,800 units.
QUESTION15. The flexible‐budget variance for materials is:
For 2023, Tomtom Manufacturing uses machine‐hours as the only overhead cost‐allocation base. The estimated manufacturing overhead costs are $300,000 and estimated machine hours are 50,000. The actual manufacturing overhead costs are $420,000 and actual machine hours are 60,000
QUESTION36. What is the difference between the budgeted and the actual manufacturing overhead using job costing?
Pasir Corporation used the following data to evaluate their current operating system. The company sells items for $18 each and used a budgeted selling price of $18 per unit.
|
Actual
|
Budgeted
|
Units sold
|
41,000 units
|
40,000 units
|
Variable costs
|
$164,000
|
$156,000
|
Fixed costs
|
$46,000
|
$48,000
|
QUESTION12. What is the static‐budget variance of operating income?