Question

PART 1 Woodpecker Co. has $301,000 in accounts receivable on January 1. Budgeted sales for January...

PART 1

Woodpecker Co. has $301,000 in accounts receivable on January 1. Budgeted sales for January are $880,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are

a.$1,306,000

b.$603,000

c.$804,000

d.$1,005,000

PART 2

Woodpecker Co. produced 2,500 units of a product that required 3.3 standard hours per unit. The standard fixed overhead cost per unit is $1.70 per hour at 8,400 hours, which is 100% of normal capacity.

Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number. Round your answer to the nearest dollar Answer must be a dollar amount and either favorable or unfavorable.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer-Part-1- The January cash collections from sales are= $1005000.

Explanation- January cash collections from sales = Cash sales of January month+ Cash collection from credit sales

= ($880000*20%)+ $301000+($880000*80%*75%)

= $176000+$301000+$528000

= $1005000

Answer-Part-2- Fixed overhead volume variance= $255 Unfavorable.

Fixed overhead volume variance = Absorbed fixed overhead- Budgeted fixed overhead

= (2500 units*3.3 hours per unit*$1.70 per hour)- (8400 hours*$1.70 per hour)

= $14025- $14280

= $255 Unfavorable

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Woodpecker Co. has $298,000 in accounts receivable on January 1. Budgeted sales for January are $992,000....
Woodpecker Co. has $298,000 in accounts receivable on January 1. Budgeted sales for January are $992,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are a.$654,960 b.$1,091,600 c.$873,280 d.$1,389,600
Selwyn, Inc. has budgeted the following for January: Unit sales 20,000 Direct materials cost $68,000 Fixed...
Selwyn, Inc. has budgeted the following for January: Unit sales 20,000 Direct materials cost $68,000 Fixed manufacturing overhead cost $35,000 Selwyn believes that unit sales will increase by 5% per month each month for the next year. Selwyn plans to continuously improve direct materials costs by 1% each month and fixed manufacturing overhead costs by 2% each month. Prepare a Kaizen budget for direct materials and fixed manufacturing overhead costs for January, February, March, and April. Instructions: Round your answers...
1. For February, sales revenue is $575,000, sales commissions are 4% of sales, the sales manager's...
1. For February, sales revenue is $575,000, sales commissions are 4% of sales, the sales manager's salary is $80,000, advertising expenses are $83,700, shipping expenses total 3% of sales, and miscellaneous selling expenses are $2,500 plus ½ of 1% of sales. Total selling expenses for the month of February are a.$166,200 b.$209,325 c.$206,450 d.$189,200 2. Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 634,000 units, estimated beginning inventory is 103,000 units, and desired...
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted...
Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2019: Denominator volume—number of units 7,000 Denominator volume—percent of capacity 70 % Denominator volume—standard direct labor hours (DLHs) 35,000 Budgeted variable factory overhead cost at denominator volume $ 102,700 Total standard factory overhead rate per DLH $ 15.10 During 2019, Bluecap worked 44,000 DLHs and manufactured 9,000 units. The actual factory overhead cost for the year was $15,000 greater than the...
A division in XYZ Co. had the following financial data for 2019: sales $500,000, average operating...
A division in XYZ Co. had the following financial data for 2019: sales $500,000, average operating assets $200,000, margin (or profit margin) 4%, minimum required rate of return 8%. What was the return on investment for the division? A. 10%. B. 20%. C. 16%. D. 12%. Patricia’s housekeeping company has the following data projected for June. Beginning cash balance $24,500 Cash collections from customers 36,200 Cash disbursements 54,300 Patricia wants to maintain a cash balance of $10,000 or more. Any...
1) Determining Budgeted Overhead The overhead application rate for a company is $12 per unit, made...
1) Determining Budgeted Overhead The overhead application rate for a company is $12 per unit, made up of $7 per unit of fixed overhead and $5 per unit of variable over- head. Normal capacity is 10,000 units. In one month, there was a favorable flexible budget variance of $2,500. Actual overhead for the month was $110,000 and actual units produced were 15,125. Based on this information, determine the amount of the budgeted overhead for the actual level of production. 2)...
The following information for the past year is available from Thinnews Co., a company that uses...
The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred $ 30,000 Actual fixed overhead cost incurred $ 7,000 Budgeted fixed overhead cost $ 12,000 Actual machine hours 8,000 Standard machine hours allowed for the units manufactured 4,600 Denominator volume—machine hours 7,500 Standard variable overhead rate per machine hour $ 3 The variable overhead spending variance, to the...
The following information for the past year is available from Thinnews Co., a company that uses...
The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred $ 24,000 Actual fixed overhead cost incurred $ 10,000 Budgeted fixed overhead cost $ 11,000 Actual machine hours 5,000 Standard machine hours allowed for the units manufactured 4,800 Denominator volume—machine hours 5,500 Standard variable overhead rate per machine hour $ 3.00 Under a three-variance breakdown (decomposition) of the...
The following information for the past year is available from Thinnews Co., a company that uses...
The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs: Actual total factory overhead cost incurred$35,000 Actual fixed overhead cost incurred$12,000 Budgeted fixed overhead cost$10,000 Actual machine hours 9,000 Standard machine hours allowed for the units manufactured 5,400 Denominator volume—machine hours 6,100 Standard variable overhead rate per machine hour$3 Under a three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead...
Kenney Co. uses a standard cost system. Standard direct labor hours are the basis for applying...
Kenney Co. uses a standard cost system. Standard direct labor hours are the basis for applying overhead to production. The fixed overhead budget for the year is $450,000 and the expected activity level was 30,000 hours. Each unit of product is expected to use 2 hours of direct labor. Actual production was 14,500 units and the actual fixed overhead cost was $420,000. Required: Be sure to label each variance as F – favorable or U – unfavorable 1. What is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT