Question 1: Cicchetti Corporation uses customers served as its measure of activi

Question

Question 1:

Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December:

Prepare a report showing the company’s revenue and spending variances for December. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

CICCHETTI CORPORATION

Revenue and Spending Variances

For the Month Ended December 31

Expenses:

Supplies

Question 2:

Coderre Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During July, the company budgeted for 7,300 units, but its actual level of activity was 7,250 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for July:

Data used in budgeting:

$56,100

$23.20     

Actual results for July:

The revenue variance for July would be closest to:

$440 U

$440 F

$1,300 F

$1,300 U

**** I chose $1,300 F, but I wasn't if it would be F or U.

Question 3:

Hejl Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $510 per month plus $100 per job plus $31 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in March to be 21 jobs and 131 meals, but the actual activity was 15 jobs and 138 meals. The actual cost for catering supplies in March was $6,050. The spending variance for catering supplies in March would be closest to:

$621 U

$238 U

$621 F

$238 F

***I chose $238 U, but wasn't sure if it was F or U.

Question 4:

In July the company produced 3,350 units using 13,400 pounds of the direct material and 2,800 direct labor-hours. During the month, the company purchased 14,160 pounds of the direct material at a cost of $35,100. The actual direct labor cost was $66,796 and the actual variable overhead cost was $29,508.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

$404 F

$404 U

$2,476 U

$2,476 F

*** I chose $404 F, but wasn't sure if it was F or U.

Question 5:

Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for one unit of product.

During May, Jackson purchased 116,000 pounds of direct material at a total cost of $475,000. The total factory wages for May were $366,000, 90 percent of which were for direct labor. Jackson manufactured 22,000 units of product during May using 100,000 pounds of direct material and 38,000 direct labor-hours.

The price variance for the direct material acquired by Jackson Industries during May is:

$42,400 Favorable

$45,800 Unfavorable

$48,800 Favorable

$42,400 Unfavorable

*** I chose $45,800 Unfavorable, but just wanted to make sure I was right!

Question 6:

In July the company produced 4,900 units using 10,300 pounds of the direct material and 2,280 direct labor-hours. During the month, the company purchased 10,870 pounds of the direct material at a cost of $76,750. The actual direct labor cost was $38,240 and the actual variable overhead cost was $11,941.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

rev: 11_06_2015_QC_CS-32670

$520 U

$660 F

$3,500 U

$520 F

*** I chose $3,500 U, but wanted to make sure I was right!

Question 1:

Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December:

Explanation / Answer

Answer 1. CICCHETI CORPORATION Revenue & Spending Variances For the Month Ended Dec 31 Actual Flexible Revenue & Spending Variance Customers Served (q)            38,000            38,000 Revenue ($3.50q)    133,800.00    133,000.00         800.00 (F) Expenses Wages & Salaries ($23,700 + $1.27q)      71,960.00      71,960.00                  -   (U) Supplies ($0.67q)      22,290.00      25,460.00     3,170.00 (F) Insurance ($5,600)        5,600.00        5,600.00                  -   Miscellaneous ($4,600 + $0.36q)      15,420.00      18,280.00     2,860.00 (F) Total Expenses    115,270.00    121,300.00     6,030.00 (F) Net Operating Income      18,530.00      11,700.00     6,830.00 (F) Answer 2. $1,300(F) Revenue Variance = Actual Revenue - Flexible Budget Revenue Revenue Variance = $253,600 - ($34.80 X 7,250 Units) Revenue Variance = $253,600 - $252,300 Revenue Variance = $1,300 (F) Answer 3. $238 (F) Spending Variance = Flexible Budget Expense - Actual Expense Spending Variance = ($510 + $100 X 15 Jobs + $31 x 138 Meals) - $6,050 Spending Variance = $6,288 - $6,050 Spending Variance = $238 (F) Answer 4. $404 (F) Labor Rate Variance = (SR - AR) X AH Labor Rate Variance = ($24 - $23.86) x 2,800 hrs Labor Rate Variance = $404 (F) AR = $66,796 / 2,800 DLH AR = $23.86 per hour (Approx.) As per Chegg Guidelines you can ask 1 Question or 1 Question having 4 sub-parts. For Other Parts please ask it again.

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