9. Faulkner Charter Boats Company runs boating trips along the Alabama River. Be
ID: 2728006 • Letter: 9
Question
9. Faulkner Charter Boats Company runs boating trips along the Alabama River. Below are actual and budgeted costs.
A. calculate a flexible budget by 10 charter increments (100 – 140 charters).
Notes: remember the rules about variable and fixed unit costs.
Overhead costs
Variable overhead costs: Per Unit Budget
Cleaning $55.00 per charter
Maintenance $25.00 per charter
Park usage fees $15.00 per charter
Fixed overhead costs:
Salaries and wages $12,000 per month
Depreciation $3,000 per month
Federal License fee $1,000 per month
B. compare the flexible budget from data in part A. above using actual costs below.
Actual costs- 110 charters Actual Budget Variance F or U
Overhead Costs 110
Variable overhead costs:
Cleaning $6,500
Maintenance $2,500
Park usages fees $1,500
Fixed overhead costs:
Salaries and wages $11,000
Depreciation $2,000
Federal license fee $1,000
18. Compute the variances based on the problem data below.
Colonial Pewter makes pewter bookends. Use the data below to calculate the 2 variances and the total variance. Also state whether each variance is F (Favorable) or U (Unfavorable). 2,000 pewter bookends were produced.
Standards used
Direct Materials: 4 pounds x $5.00 per pound = $20 per unit
Direct Labor: 3 hour per unit x $9.00 per hour = $27 per unit
Var. Manuf. Overhead: 3 hours per unit x $4.00 per hour = $12.00 per unit
Actual costs:
Materials purchased: 7,000 pounds of pewter were purchased for $4.00 per pound for $28,000
Direct Labor 5,000 hours at $11 per hour was paid for $55,000.
Var. Manuf. Overhead: $10,000 (assume 2,000 labor hour at $5.00 per hour)
Explanation / Answer
Ans;
Answer:a
Answer:b
Flexible budget Particulars 100 110 120 130 140 Variable expenses: Cleaning 5500 6050 6600 7150 7700 Maintenance 2500 2750 3000 3250 3500 Park usage fees 1500 1650 1800 1950 2100 Total variable cost 9500 10450 11400 12350 13300 Fixed expenses: Salaries and wages 12000 12000 12000 12000 12000 Depreciation 3000 3000 3000 3000 3000 Federal license Fee 1000 1000 1000 1000 1000 Total fixed costs 16000 16000 16000 16000 16000 Total cost 25500 26450 27400 28350 29300Related Questions
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