SnowDream operates a Rocky Mountain ski resort. The company is planning their lift ticket pricing for the coming ski
QR: (Click the icon to view the information.)
Assume that SnowDream's reputation has diminished jand other resorts in the vi
Longman, me", is a'manufacturer'of lead crystal glasses. The' standard materials quantity is 1.0 pound per glass at a
price of $0.40 per pound. The actual results for the production of 7,000 glasses was 1.3 pounds per glass, at a price of
$0.50 per pound.
Albany Paint Company's budgeted production volume for the month was 28,000 gallons of paint. The standard
overhead cost included a $0.55 variable overhead per gallon and fixed overhead costs of $28,000. Albany Paint
actually produced 31,000 gallons of pai
Albany Paint Company
Manufacturing Overhead Variances
a. " .l
Total overhead variance:
Actual overhead cost $' / 48,000 _ l
Standard overhead allocated to production / 48,050
Total overhead variance $ 50 F I
Overhead exible budget variance:
CeilBaSe Technc'bgies' , . , . .
,. J - ilncqme Statement PerformanggsRve'pOrvt. I a I I.
;. 's5gMonth Ended May 31,204.1-
FlexibleBudget for, ~ . E i
Actual Resultsat Flexible Budget Actual Number of 3 Sales Volume 7 Static (Master)
71. I ,. I . >. I ., :ngehirsonesn; I
schedng ofcpstpf'eoods ManufactuFed ff =
I Year Ended December 31, 2011:
' Beginning Work in process inventorfyhv _
Add: Direct materials used
Beginning material'sinVento'ry ' V
Nature Place operates a commercial plant nursery, where it propagates plants for garden centers throughout the
region. Nature Place has $4,950,000 in assets. Its yearly fixed costs are $625,000 and the variable costs for the
potting soil, container, label
Revenue at market price $ 44,175,000
Less: Desired prot cfw_12,000,000
Target full cost $ 32,175,000
Less: Reduced level of xed costs ' I 98,000,000?
Target total variable costs $ 4,175,000
Finally divide the target total variable costs by the number of
, . ._._ . ._._ _ .mmmm,m WWW
I. I . H 'I g
" ' I Sales Budget V . v 5
Forthe Year Ended, December 31,2012 '
Quarter 5 ' ' Annual '
A Budgeted sales in sandwiches
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
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