F2 F3 F4 FS F8 ABC Company budgeted manufacturing costs for 100,000 chairs are:
ID: 2584030 • Letter: F
Question
F2 F3 F4 FS F8 ABC Company budgeted manufacturing costs for 100,000 chairs are: , Fixed manufacturing costs Variable manufacturing costs $150,000 per month $%10.00 per chair ABC Company produced 120,000 chairs during January. How much is the flexible budget t total manufacturing costs for January? 2. Given the following Performance report, determine the total amount of variance and if it is favorable or unfavorable. Performance Report Actual Cost Budgeted Cost 10,000 Units Produced 10.000 Variable Overhead Maintenance 50,000$_46,000 Power Indirect Labor $ 20,00021,000 $ 5,000 $ -3,000 Chapter 12 $25,000 $100,000 Operating Income Average Operating AssetsT Required Return on Investment (RO) A. How much is the return on investment? B. What is the residual income? LcExplanation / Answer
Chapter 11
Fixed Manufacturing cost per month = $150,000
Variable Manufacturing cost per month = $10*120,000 chairs = $1,200,000
Total Cost =Fixed Cost + Variable Cost = $150,000+$1,200,000=$1,350,000
Chapter 12
Variance = Budget cost – actual cost
= $75000-$70,000 = $5,000 Favourable
As the actual cost is less than the budgeted cost
Chapter 11
Fixed Manufacturing cost per month = $150,000
Variable Manufacturing cost per month = $10*120,000 chairs = $1,200,000
Total Cost =Fixed Cost + Variable Cost = $150,000+$1,200,000=$1,350,000
Chapter 12
Variance = Budget cost – actual cost
= $75000-$70,000 = $5,000 Favourable
As the actual cost is less than the budgeted cost
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