BSBA Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; P300,000; P3. (b) inspections, 120,000; P600,000; P5. and (c) assembly, 140,000; P2,100,000; P15. The total factory overhead to be charged to each unit of soft drink is * P56.00 P50.00 P38.00 P51.00

BSBA Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; P300,000; P3. (b) inspections, 120,000; P600,000; P5. and (c) assembly, 140,000; P2,100,000; P15. The total factory overhead to be charged to each unit of soft drink is * P56.00 P50.00 P38.00 P51.00

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...

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BSBA Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; P300,000; P3. (b) inspections, 120,000; P600,000; P5. and (c) assembly, 140,000; P2,100,000; P15. The total factory overhead to be charged to each unit of beer is
KPT Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; P300,000; P3. (b) inspections, 120,000; P600,000; P5. and (c) assembly, 140,000; P2,100,000; P15. The total factory overhead to be charged to each unit of beer is a.P23.00 b.P16.67 c.P38.00 d.P50.00
Yve Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; $300,000; $3. (b) inspections, 120,000; $600,000; $5. and (c) assembly, 140,000; $2,100,000; $15. The total factory overhead to be charged to each unit of soft drink is P50.00P51.00P56.00P38.00
Nick Company manufactures beers and soft drinks. Beers (5,000 units) will require 1 set-up, 4 inspections and 1 assembly. Soft drinks (2,000 units) will require 2 set-ups, 1 inspection, and 3 assemblies. The following are information related to activity pool, activity base, budgeted amount and activity rate: (a) set-ups, 100,000; $300,000; P3. (b) inspections, 120,000; $600,000; P5. and (c) assembly, 140,000; $2,100,000; P15. The total factory overhead to be charged to beer is $392,000 $190,000. $280,000. $112,000.
Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.
1. Ashton Company produces Product A. Among the materials used are aluminum strips. According to the standards established based on the normal capacity level, three pieces of aluminum strips should be used for each product at a standard price of P0.60 per piece. For the month of November 2023, budgeted production was 5,100 units of Product A. During the month, however, records showed the following: Actual production: 4,000 units Aluminum strips purchased in November: 11,800 pieces at P0.62 Increase in inventory during November: 3,700 pieces For the aluminum strips, compute the following (show your solution): a. Budgeted quantity b. Budgeted cost c. Actual cost d. Standard quantity e. Standard cost f. Standard cost variance g. Price variance h. Quantity variance 2. During the month, 1,200 units of Product LTK were produced. Actual direct labor hour required was 600 direct labor hours at an actual cost of $6,060. According to the standard cost card for the product, 0.6 of labor hour…
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for esch deportment. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor Indirect labor Utilitics Supplies Equipment depreciation Factory rent Ргopсrty tакеs Factory adninistration $15.88g $8, 280 + $1.68g $6,400 + $e.seg $1,180 + $e.48g $23,0ee + $3.78g $8,400 $2,100 $11,700 + $1.9eg The Production Department planned to work 8,000 lebor-hours in March; however, it octually worked 8,400 lobor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March $134,738 $ 19,860 $ 14,578 $ 4,988 $ 54, 88e $ 8,700 $ 2,100 $ 26,470 Direct labor Indirect labor lities Supplies Equipment depreciation Factory rent Property taxes Factory administration Required: 1. Prepare the Production…
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Corazon Manufacturing Company has a purchasing department staffed by five purchasingagents. Each agent is paid $28,000 per year and is able to process 4,000 purchase orders. Lastyear, 17,800 purchase orders were processed by the five agents.Required:1. Calculate the activity rate per purchase order.2. Calculate, in terms of purchase orders, the:a. total activity availabilityb. unused capacity3. Calculate the dollar cost of:a. total activity availabilityb. unused capacity4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for $14,000? How many pur-chase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
KMC Manufacturing Company makes garden and lawn equipment. The company operates through three divisions. Each division is an investment centre. Operating data for the lawn mower division for the year ended December 31, 2020, and relevant budget data are as follows: Actual Comparison with Budget Sales $2,900,000 $150,000 unfavourable Variable cost of goods sold 1,400,000 100,000 unfavourable Variable selling and administrative expenses 300,000 40,000 favourable Controllable fixed cost of goods sold 270,000 On target Controllable fixed selling and administrative expenses 140,000 On target Average operating assets for the year for the lawn mower division were $5million, which was also the budgeted amount. Required: Prepare a responsibility report (in thousands of dollars) for the lawnmower division. Calculate the expected ROI in 2020 for the KMC division, assuming the following independent changes: The…
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $179,400, and 13,800 orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. per sales order b. Determine the amount of sales order processing cost that Nozama.com would receive if it had 7,900 sales orders.
Stupji Ltd uses activity based costing. The budgeted distribution costs for the next year are: Transport costs $2,631 Order processing $1,573 -------- Total distribution costs $4,204 It is estimated that in the next year, 325,000 orders will be processed, and that the delivery vehicles will travel 1,495,000 km. A customer has indicated that 138 orders, each of which will require a journey of 122 km for each order will be placed next year. To the nearest $, what is the distribution cost for this customer? a. $47,342 b. $38,891 c. $30,299 d. $1,785