Johnson Electrical produces industrial ventilation fans. The company plans to ma

Question

Johnson Electrical produces industrial ventilation fans. The company plans to manufacture 66,000 fans evenly over the next quarter at the following costs: direct material, $1,716,000; direct labor, $528,000; variable production overhead, $531,300; and fixed production overhead, $933,000. The $933,000 amount includes $72,000 of straight-line depreciation and $114,000 of supervisory salaries. Shortly after the conclusion of the quarter's first month, Johnson reported the following costs: Direct material Direct labor Variable production overhead Depreciation Supervisory salaries Other fixed production overhead Total $527,900 164,500 184,000 24,000 40,700 243,000 $1,184,100

Explanation / Answer

Answer 2. Flexible Budget would be more useful

Answer 3.

Answer 4

Answer 5A

a performance report based on flexible budgeting

Answer 5B

Kelleman's assessment regarding the favourble overall performance for the period is correct

Particulars Static Budget Actual    22000 units 20000 units Variances Direct material used 572000 527900 44100 favourable Direct Labour 176000 164500 11500 favourable Variable Production Overheads 177100 184000 6900 Unfavourable Depriciation 24000 24000 0 none Supervisory Salaries 38000 40700 2700 Unfavourable Other fixed Production Overheads 249000 243000 6000 favourable Total 1236100 1184100 52000 favourable

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

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