Accounting Problems Set of 11 Questions
1) The president of the corporate, Max Greatest, has come to you for assist. Use the next information to organize a versatile funds for doable gross sales/manufacturing ranges of 10,00zero, 11,00zero, and 12,00zero items. Present the contribution margin at every exercise stage.Gross sales value $24 per unitVariable prices:Manufacturing $12 per unitAdministrative $ three per unitSelling $ 1 per unitFixed prices:Manufacturing $60,000Administrative $20,0002) Ready Firm manufactures tables for faculties. The 2015 working funds is predicated on gross sales of 44,00zero items at $55 per desk. Working earnings is anticipated to be $132,00zero. Budgeted variable prices are $35 per unit, whereas mounted prices complete $660,00zero.Precise earnings for 2015 was a shocking $477,00zero on precise gross sales of 46,00zero items at $57 every. Precise variable prices have been $33 per unit and glued prices totaled $627,00zero.Required:Put together a variance evaluation report with each flexible-budget and sales-volume variances.three) The next information for the Campbell Firm pertains to the manufacturing of two,00zero backyard spades throughout March. The spade consists of a picket deal with and a metallic solid software that is available in contact with the bottom.Direct Supplies (all supplies bought have been used):Customary value: $1.00 per deal with and $three.00 per metallic software.Whole precise value: $9,00zero.Supplies flexible-budget effectivity variance was $500 unfavorable.Direct Manufacturing Labor:Customary value is 5 backyard spades per hour at $20.00 per hour.Precise value per hour was $21.00.Labor effectivity variance was $500 favorable.Required:a. What's the normal direct materials quantity per backyard spade?b. What's the normal value allowed for all items produced?c. What's the complete direct supplies flexible-budget variance?d. What's the direct materials flexible-budget value variance?e. What's the complete precise value of direct manufacturing labor?f. What's the labor value variance for direct manufacturing labor?four) Delk Firm makes separate journal entries for all value accounting-related actions. It makes use of a regular value system for all manufacturing gadgets. For the month of June, the next actions have taken place:Direct Manufacturing Supplies Bought $300,000Direct Manufacturing Supplies Used 250,000Direct Supplies Value Variance 10,00zero unfavorable(at time of buy)Direct Supplies Effectivity Variance 15,00zero favorableDirect Manufacturing Labor Value Variance 6,00zero favorableDirect Manufacturing Labor Effectivity Variance four,00zero favorableDirect Manufacturing Labor Payable 170,000Required:File the required journal entries to shut the accounts for the month.5) Evans Inc. manufactures pillows. The 2015 working funds is predicated on manufacturing of 25,00zero pillows with zero.75 machine-hour allowed per pillow. Budgeted variable overhead per hour was $25.Precise manufacturing for 2015 was 27,00zero pillows utilizing 19,zero50 machine-hours. Precise variable prices have been $23 per machine-hour.Required:Calculate the variable overhead spending and effectivity variances.6) Farmer Inc. makes clocks. The mounted overhead prices for 2015 complete $880,00zero. The corporate makes use of direct labor-hours for mounted overhead allocation and anticipates 220,00zero hours throughout the 12 months for 330,00zero items. An equal variety of items are budgeted for every month.Throughout June, 32,00zero clocks have been produced and $72,00zero was spent on mounted overhead.Required:a. Decide the mounted overhead price for 2015 based mostly on items of enter.b. Decide the mounted overhead static-budget variance for June.c. Decide the production-volume overhead variance for June.7) Inexperienced has budgeted development overhead for August of $260,00zero for variable prices and $435,00zero for mounted prices. Precise prices for the month totaled $275,00zero for variable and $445,00zero for mounted. Allotted mounted overhead totaled $440,00zero. The corporate tracks every merchandise in an overhead management account earlier than allocations are made to particular person jobs. Spending variances for August have been $10,00zero unfavorable for variable and $10,00zero unfavorable for mounted. The production-volume overhead variance was $5,00zero favorable.Required:a. Make journal entries for the precise prices incurred.b. Make journal entries to document the variances for August.eight)Haines Firm sells its merchandise for $33 every. The present manufacturing stage is 50,00zero items, though solely 40,00zero items are anticipated to be offered.Unit manufacturing prices are:Direct supplies $6.00Direct manufacturing labor $9.00Variable manufacturing prices $four.50Whole mounted manufacturing prices $180,000Marketing bills $three.00 per unit, plus $100,00zero per yearRequired:a. Put together an earnings assertion utilizing absorption costing.b. Put together an earnings assertion utilizing variable costing.9) Ickle Firm produces a specialty statue merchandise. The next data has been supplied by administration:Precise gross sales 10,00zero unitsBudgeted manufacturing 12,00zero unitsSelling value $425 per unitDirect materials prices $87.50 per unitFixed manufacturing prices $62.50 per unitVariable manufacturing prices $50.00 per unitVariable administrative prices $25.00 per unitRequired:a. What's the value per statue if absorption costing is used?b. What's the value per statue if "super-variable costing" is used?c. What's the complete throughput contribution?10) The James Inc. has supplied the next data:Models of Output 33,00zero Models 46,200 UnitsDirect supplies $ 316,800 $ 443,520Staff' wages 1,188,00zero 1,663,200Supervisors' salaries 343,200 343,200Tools depreciation 166,320 166,320Upkeep 89,760 121,440Utilities 422,400 580,800Whole $2,526,480 $three,318,480Utilizing the high-low methodology and the data supplied above,a. establish the linear value operate equation (make sure to variable and glued parts within the equation)b. estimate the entire value at 38,00zero items of output.11)What are the three standards an organization ought to use to judge and select a value driver? Briefly clarify every of the three standards.