Q13. Chapter 8 student solutions. 1690 0 obj <> endobj 0000002467 00000 n AP = Actual Price 3. Chapter 8 homework solutions . (1) Compute the overhead volume variance. The May fixed budget included sales of 650 computers at an average price of $1,060 each. Do not round intermediate calculations. Book Online. Blog. �Ilx�����0��SV�|gxa����ݱ •H�R � Z6����݀���>��@��5ju�Kj(�(Pt�. During the current month, the company operated at 55% of capacity, employees worked 731,000 hours, and the following actual overhead costs were incurred. Sedona Company set the following standard costs for one unit of its product for this year. 0000018537 00000 n 0000004255 00000 n SVR = Standard Variable Rate Chapter 08 Profit Planning 8-1 Chapter 08 Profit Planning Solutions to Questions 8-1 A budget is a detailed quantitative plan for the acquisition and use of financial and other resources over a given time period. During June the company incurred the following actual costs to produce 8,700 units. View step-by-step homework solutions for your homework. Ask our subject experts for help answering any of your homework questions! At the 80% capacity level, the total budgeted cost includes $69,750 fixed overhead cost and $320,850 variable overhead cost. SQ = Standard Quantity Q16. 0000001466 00000 n Compute the overhead controllable variance and classify it as favorable or unfavorable. AP = Actual Price (Indicate the effect of each variance by selecting  for favorable, unfavorable, and No variance.). Actual expenses include $177,000 fixed expenses. Javonte Co. set standards of 3 hours of direct labor per unit of product and $15.20 per hour for the labor rate. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.). (Indicate the effect of each variance by selecting  for favorable, unfavorable, and no variance. Hart Company uses a standard costing system. Chapter 15: Financial Reporting and Concepts ; Chapter 16: Financial Analysis and the Statement of Cash Flows ; Chapters 17-20 Managerial/Cost. Tempo Company’s fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. (Indicate the effect of each variance by selecting  for favorable, unfavorable, and No variance. ). startxref 0000000016 00000 n Classify it as favorable or unfavorable. ... accounting, asset valuation is a judgment about which people may reasonably disagree: though GAAP have Online Library Managerial Accounting Garrison 14th Edition Chapter 8 Solutions If you ally need such a referred managerial accounting garrison 14th edition chapter 8 solutions ebook that will find the money for you worth, get the utterly best seller from us currently from several preferred authors. Which direct materials variances will Hart investigate further? Q8. Course. Antuan Company set the following standard costs for one unit of its product. (2) Compute the total cost variance for June. @ $4.10 per lb. Contact. (2) Compute the total fixed costs. Q11. SP = Standard Price, 1&2. Overhead is allocated to products using a predetermined standard rate of 0.625 direct labor hour per unit. 0000008040 00000 n FAQ. Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. june 15th, 2018 - click to purchase solutions acc 560 managerial accounting acc 560 week 1 homework chapter 01 exercises 5 8 12 16 problems 1 4 acc 560 week 2 homework chapter 02 exercises 4 9 11 12 problems 1 5 acc 560 week 2 homework chapter 03 (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Compute the direct materials cost variance, including its price and quantity variances. AQ = Actual Quantity Sedona Company set the following standard costs for one unit of its product for this year. 1. At the 70% capacity level, the total budgeted cost includes $66,500 fixed overhead cost and $182,875 variable overhead cost. If you are looking for accounting class help for other fields then also you can connect with us anytime. About Karen. The following monthly flexible budget information is also available. World Company expects to operate at 70% of its productive capacity of 38,000 units per month. 1&2. 0000004177 00000 n Solution for Hospitality Industry Managerial Accounting 7th Edition Chapter 9, Problem 8 by Raymond S. Schmidgall, Michigan 210 Solutions 15 Chapters 6782 Studied ISBN: 9780133097290 Other Subjects 5 … (2) Compute the overhead controllable variance. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget: During May, the company operated at 90% capacity (11,250 units) and incurred the following actual overhead costs: 1. SH = Standard Hours Round “OH costs per DL hour” to 2 decimal places.). Do not round your intermediate calculations. Home. SQ = Standard Quantity Log in / Sign up. ), Variable overhead (20 hrs. Round your final answers to whole dollars.). (2) Javonte investigates variances of more than 5% of actual direct labor cost. Budgetary control involves using budgets to increase the likelihood that all parts of an organization are working together to achieve the goals set down in the planning stage. Antuan Company set the following standard costs for one unit of its product. 0000007152 00000 n SH = Standard Hours Study Guide - Certiport Chapter 7 Homework Solutions Q7-1 Absorption and variable costing . Our solutions are written by Chegg experts so you can be assured of the highest quality! Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed. We will provide high quality and accurate accounting assignment help for all questions…, Connect Managerial Accounting Homework Chapter 8, Human Resource Management Assignment Help, Direct materials (132,700 lbs. Hart Company made 3,380 bookshelves using 22,380 board feet of wood costing $313,320. (Indicate the effect of each variance by selecting  for favorable, unfavorable, and No variance. Compute the direct labor cost variance, including its rate and efficiency variances. (4) Compute the income from operations for sales volume of 16,000 units. More. get the managerial accounting homework solutions associate that we provide here and check out the link. @ $2.30 per hr. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. In November, the company uses 21,000 hours of direct labor at a $324,450 total cost to produce 6,200 units of product. In the current month, the company incurred $421,625 actual overhead and 16,405 actual labor hours while producing 44,600 units. At this planned level, the company expects to use 16,625 standard hours of direct labor. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.). Q10. Following are the company’s budgeted overhead costs per month at the 75% capacity level. 0000001677 00000 n @ $3.75 per lb.). Book Online. 3. Which direct labor variances will the company investigate further? Comp Wiz sells computers. 0000006641 00000 n (1) Prepare the journal entry to charge direct materials costs to Work in Process Inventory and record the materials variances. Q6. 0000003179 00000 n 0000018304 00000 n @ $2.30 per Ib. The $3.50 ($2.30 + $1.20) total overhead rate per direct labor hour is based on an expected operating level equal to 60% of the factory’s capacity of 69,000 units per month. The company’s direct materials standards for one bookshelf are 8 board feet of wood at $13.90 per board foot. Connect Managerial Accounting Homework Chapter 8. (2) Assume that Hart’s materials variances are the only variances accumulated in the accounting period and that they are immaterial.