Trois Elles Corporation recently prepared a manufacturing cost budget for an out

Question

Trois Elles Corporation recently prepared a manufacturing cost budget for an output of 58,000 units, as follows:

  
Actual units produced amounted to 68,000. Actual costs incurred were: direct materials, $117,000; direct labor, $68,000; variable overhead, $116,000; and fixed overhead, $113,000. If Trois Elles evaluated performance by the use of a flexible budget, a performance report would reveal a total variance of (Round intermediate calculations to 2 decimals and the final answer to the nearest dollar amount.):

$8,000 favorable.

$5,000 favorable.

$44,000 unfavorable.

$37,000 unfavorable.

None of these.

Zin, Inc. is planning its cash needs for an upcoming period when 96,000 machine hours are expected to be worked. Activity may drop as low as 89,000 hours if some overdue equipment maintenance procedures are performed; on the other hand, activity could jump to 105,000 hours if one of Zin's major competitors likely goes bankrupt. A flexible cash budget to determine cash needs would best be based on:

105,000 hours.

96,000 hours.

89,000 hours.

89,000 hours and 105,000 hours.

89,000 hours, 96,000 hours, and 105,000 hours.

Gourmet Restaurants has the following flexible-budget formula:

Y = $14 PH + $540,000 where PH is defined as process hours.
  
What is Gourmet's budgeted total cost if its process hours equal 27,000?

$378,000.

$540,000.

$918,000.

$1,458,000.

Answer cannot be determined from the information provided.

  Direct materials $116,000   Direct labor 58,000   Variable overhead 87,000   Fixed overhead 116,000

Explanation / Answer

Ans 1 Static S Flexible F Actual A Varince units 58000 68000 68000 Direct material 136000 117000 19000 F 116000/58000*68000 Direct Labor 68000 68000 0 None 58000/58000*68000 Variable overhead 102000 116000 14000 U 87000/58000*68000 Fixed Overhead 116000 116000 113000 3000 F 490000 482000 8000 F option A $8000 ans 2 96000 hours as it is expected hours ans 3 Y=14PH+540000 Y=(14*27000)+540000 918000 Option C $918000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.