29 Jun Question For Eckert Inc. vari
Question
For Eckert Inc. variable manufacturing overhead costs are expected to be $20,000 in the first quarter of 2011 with $4,000 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $35,000 in each quarter. Prepare the manufacturing overhead budget by quarters and in total for the year.
Paige Company has completed all of its operating budgets. The sales budget for the year shows 50,000 units and total sales of $2,000,000. The total unit cost of making one unit of sales is $22. Selling and administrative expenses are expected to be $300,000. Income taxes are estimated to be $150,000. Prepare a budgeted income statement for the year ending December 31, 2011. (Enter all amounts as positive amounts and subtract where necessary.)
E8-11 (a,b)
Cawley Company’s Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Cawley then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate to small motor LN233 on a per unit basis.
Fixed cost per unit
$5
Variable cost per unit
8
Selling price per unit
30
Assuming that the Small Motor Division has excess capacity, compute the minimum acceptable price for the transfer of small motor LN233 to the Household Division.
Assuming that the Small Motor Division does not have excess capacity, compute the minimum acceptable price for the transfer of the small motor to the Household Division
Kendra Company’s standard labor cost of producing one unit of Product DD is 4 hours at the rate of $12.00 per hour. During August, 40,800 hours of labor are incurred at a cost of $12.10 per hour to produce 10,000 units of Product DD.
Compute the total labor variance.
Compute the labor price and quantity variances
Repeat the previous question, assuming the standard is 4.2 hours of direct labor at $12.25 per hou
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