Tucker's Turkey Sandwiches Inc. manufactures and sells turkey sandwiches. Tucker's sales and production budget for the year ended December
31, 2012 and balance sheet for the year ended December 31, 2011 were as follows:
(Ctick to View the balance sheet.)
Total manufacturing overhead for the year
fBudgeted directlaborhours forthe/year. " " '
'Predetermined manufacturing-overhead rate. . l I f I V I [ '
Prepare the ending finished goods inventory budget. (Round all answers to the nearESt cent.)
n Trim's Turkey Sandwiches lnc. manufactures and sells turkey
sandwiches. Trim's balance sheet for the year ended December 31, 2011 follows:
was as follows: .
.- Sales budget
Direct materials budwet
November production generated the following activity in Classic Chassis Company's Work in process inventory
(at) (Click the icon to view the activity.)
Additionally, Classic completed production, but has not yet recorded Jobs 142 and 143, with total
(00m) V i '. ~ 1strlj ' 72vdi'. Uv3rd. 4th VKma.
V W 72-NBud'geted salesin'sahdwichesf Hgm' , 10 g x
Add: Ending Finished Geederinventow = 3
_ f :
-; Budgeted Finished.Goede'AVeiIable
4 6 l i (0
i . .s'xf
income is higher than expected (per the static budget) then the Variance is favorable. If the actual Operating income is
lower than expected (per the static budget) then the variance is unfavorable.
Explain why the income statement performance report pro
Cool Systems manufactures an optical switch that it uses
in its final product. Another company has offered to sell
Cool Systems the switch for $16.50 per unit. None of
Cool's fixed costs are avoidable.
(Click the icon to view the outsourcing decision.)
Work in process inVentory
November1 Bal. 23,000
Direct materials used 27,000
Direct labor assigned to jobs . 29,000
Manufacturing overhead allocated to jobs 15,000
Direct materials become a physical part of the fin
Income Statement Performance Report
Month Ended January 31, 2011
Flexible Budget for
Actual Numberof Sales Volume Static (Mastt
Output units 11,000 0 11,000
Actual Results at Flexible Budget
Actual Prices Varian