Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.
Beginning Inventory | Ending Inventory | |
Finished goods (units) | 28,000 | 38,000 |
Raw material (grams) | 58,000 | 48,000 |
Each unit of finished goods requires 3 grams of raw material. The company plans to sell 230,000 units during the year.
How much of the raw material should the company purchase during the year?
The following standards for variable manufacturing overhead have been established for a company that makes only one product:
Standard hours per unit of output | 7.8 | hours | |
Standard variable overhead rate | $ | 14.20 | per hour |
The following data pertain to operations for the last month:
Actual hours | 2,825 | hours | |
Actual total variable manufacturing overhead cost | $ | 40,835 | |
Actual output | 250 | units | |
What is the variable overhead efficiency variance for the month?
WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows:
Product X | Product Y | Product Z | ||||
Units produced | 2,600 | 3,100 | 4,100 | |||
Per unit sales value at split-off | $ | 24.00 | $ | 27.00 | $ | 26.00 |
Added processing costs per unit | $ | 1.00 | $ | 3.00 | $ | 3.00 |
Per unit sales value if processed further | $ | 29.00 | $ | 29.00 | $ | 34.00 |
The cost of the joint raw material input is $91,000. Which of the products should be processed beyond the split-off point?
Product X | Product Y | Product Z | |
A) | yes | yes | no |
B) | yes | no | yes |
C) | no | yes | no |
D) | no | yes | yes |
Viger Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month:
Budgeted level of activity
9,500 MHs
Actual level of activity 9,700
MHs
Standard variable manufacturing overhead rate
$ 8.20 per MH
Actual total variable manufacturing overhead
$ 76,800
What was the variable overhead rate variance for the month?
All of Gaylord Corporation's sales are on account. Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted sales data for the company:
January | February | March | April | |||||||
Total sales | $50,000 | $60,000 | $40,000 | $30,000 | ||||||
What is the amount of cash that should be collected in March?
Overhead efficiency variency variance =standard overhead rate*9actal hours- standard hours)
=14.20(7.8*250-2825)
=12425
overhead rate variance = ( actal variable overhead rate -standard overhead rate)*avtal hours worked
actual over head rate = 76800/9700 =7.9
(7.9-8.20)9700
-2910
cash collected im march =35%40000 +45% 60000+20%50000
=510000
raw materials to purchased = sales +ending inventory-begining inventory)*3+(ending raw materials - begining raw materials)
=230000+38000-28000*3(48000-58000)
=710000
joint product processing option is b
Get Answers For Free
Most questions answered within 1 hours.