Delaney Company has the following flexible budget formulas and amounts:
Selling price per unit
$54.00
Direct materials per unit
18.00
Direct labor per unit
12.00
Variable factory overhead per unit
7.00
Variable selling and administrative expenses per unit
4.00
Fixed factory overhead
$450,000
Fixed selling and administrative expenses
100,000
Actual results for the month of October for the production and sale of 48,000 units were as follows:
Sales revenue
$2,605,000
Direct materials
868,000
Direct labor
572,000
Variable factory overhead
334,000
Variable selling and administrative expenses
195,000
Fixed factory overhead
458,000
Fixed selling and administrative expenses
105,000
Prepare a performance report for the month of October.
Delaney Company has the following flexible budget formulas and amounts:
| Selling price per unit | $54.00 |
| Direct materials per unit | 18.00 |
| Direct labor per unit | 12.00 |
| Variable factory overhead per unit | 7.00 |
| Variable selling and administrative expenses per unit | 4.00 |
| Fixed factory overhead | $450,000 |
| Fixed selling and administrative expenses | 100,000 |
Actual results for the month of October for the production and sale of 48,000 units were as follows:
| Sales revenue | $2,605,000 |
| Direct materials | 868,000 |
| Direct labor | 572,000 |
| Variable factory overhead | 334,000 |
| Variable selling and administrative expenses | 195,000 |
| Fixed factory overhead | 458,000 |
| Fixed selling and administrative expenses | 105,000 |
Prepare a performance report for the month of October.
Related questions
13 A manufacturing company that produces a single product hasprovided the following data concerning its most recent month ofoperations: |
Selling price | $149 |
Units in beginning inventory | 0 |
Units produced | 2,770 |
Units sold | 2,520 |
Units in ending inventory | 250 |
Variable costs per unit: | |
Direct materials | $51 |
Direct labor | $20 |
Variable manufacturing overhead | $10 |
Variable selling and administrative | $12 |
Fixed costs: | |
Fixed manufacturing overhead | $96,950 |
Fixed selling and administrative expenses | $35,280 |
The total gross margin for the month under absorption costingis: |
$83,160
$17,640
$130,320
$141,120
14 A manufacturing company that produces a single product hasprovided the following data concerning its most recent month ofoperations: |
Units in beginning inventory | 0 |
Units produced | 4,750 |
Units sold | 4,650 |
Units in ending inventory | 100 |
Variable costs per unit:
Direct materials | $ | 56 |
Direct labor | $ | 58 |
Variable manufacturing overhead | $ | 21 |
Variable selling and administrative | $ | 19 |
Fixed costs:
Fixed manufacturing overhead | $ | 99,750 |
Fixed selling and administrative | $ | 46,500 |
What is the variable costing unit product cost for the month?
$154 per unit
$175 per unit
$135 per unit
$141 per unit
Top of Form
15 Bartelt Inc., which produces a single product, has providedthe following data for its most recent month of operations: |
Number of units produced | 4,600 |
Variable costs per unit: | |
Direct materials | $108 |
Direct labor | $105 |
Variable manufacturing overhead | $5 |
Variable selling and administrative expense | $12 |
Fixed costs: | |
Fixed manufacturing overhead | $184,000 |
Fixed selling and administrative expense | $322,000 |
There were no beginning or ending inventories. The absorptioncosting unit product cost was: |
$213 per unit
$258 per unit
$218 per unit
$340 per unit
16 Rehmer Corporation is working on its direct labor budget forthe next two months. Each unit of output requires 0.09 directlabor-hours. The direct labor rate is $8.50 per direct labor-hour.The production budget calls for producing 5,600 units in June and6,100 units in July. |
Required: | ||||||||||||||||||
| Construct the direct labor budget for the next two months,assuming that the direct labor work force is fully adjusted to thetotal direct labor-hours needed each month. (Round youranswers to 2 decimal places.)
|
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The absorption costing income statement for this year follows.
| Sales (80,000 units à $40 per unit) | $ | 3,200,000 | |||||
| Cost of goods sold | |||||||
| Beginning inventory | $ | 0 | |||||
| Cost of goods manufactured (100,000 units à $20 per unit) | 2,000,000 | ||||||
| Cost of good available for sale | 2,000,000 | ||||||
| Ending inventory (20,000 Ã $20) | 400,000 | ||||||
| Cost of goods sold | 1,600,000 | ||||||
| Gross margin | 1,600,000 | ||||||
| Selling and administrative expenses | 610,000 | ||||||
| Net income | $ | 990,000 | |||||
Additional Information
Selling and administrative expenses consist of $450,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses.
The company's product cost of $20 per unit is computed as follows.
| Direct materials | $ | 3 | per unit | ||
| Direct labor | $ | 9 | per unit | ||
| Variable overhead | $ | 2 | per unit | ||
| Fixed overhead ($600,000 / 100,000 units) | $ | 6 | per unit | ||
Required:
1. Prepare an income statement for the company under variable costing.
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