ACC350 Final Exam Answers 1 PDF

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ACC350 Final Exam Answers 1 . Fruit-n-Berries, Inc., manufactures a product called Fruta. The company uses a standard cost system and has established the following standards for one (1) unit of Fruta: Standard Quantity Standard Price or Rate Standard Cost Direct materials 1 . 5 pounds $6 per pound $9. 00 Direct labor 0. 6 hours $12 per hour 7. 20 Varying overhead zero. 6 several hours $2. 60 per hour 1 ) 50

$17. 70 These kinds of activities had been recorded by company in accordance with the production of Fruta: a. The company made 3, 500 units throughout the month. t. A total of 8, 500 pounds of fabric were bought at an expense of $46, 000. c. There was zero beginning products on hand of resources on hand to get started on the month; at the end of this month, 5, 000 pounds of material continued to be in the storage place unused. n. The company uses 10 people to work on the production of Fruta. During June, each worked an average of 160 hours at an average rate of $12. 50 per hour. e. Variable overhead is assigned to Fruta on a basis of direct labor hours. Variable overhead costs during the month totaled $3, 600. If management is stressed to determine the efficiency of the activities surrounding the production of Fruta, (1) compute the materials price and quantity variances; (2) compute the labor rate and efficiency variances; (3) compute the variable overhead spending and efficiency variances; (4) compute the total materials difference; (5) calculate the total labor variance; (6) compute the overall variable expense variance; (7) compute the overall variance and (8) what would you suggest to managing? (120 points) Answer: 1)Material price difference = (AQ x SP) – (AQ x AP) = (8, 000 back button $6) : (8, 500 x $46, 000/8, 000) = $48, 000 -- $46, 500 = $2, 000 convenient Material selection variance sama dengan (SQ back button SP) : (AQ back button SP) sama dengan (3, 500 x 1 ) 5) back button $6 : (8, 500 – two, 000) back button $6 sama dengan $27, 500 - $36, 000 sama dengan $9, 500 unfavorable 2)Labor rate variance = (AQ x SP) – (AQ x AP) = (1, 600 x $12) – (1, 600 x $12. 5) = $19, 200 - $20, 000 = $800 unfavorable

Labor efficiency variance = (SQ x SP) – (AQ x SP) = (1, 800 x $12) – (1, 600 x $12) = $21, 600 - $19, 200 = $2, 500 favorable 3)Variable overhead spending variance sama dengan (AQ back button SP) ~ (AQ back button AP) sama dengan (1, six-hundred x $2. 50) ~ (1, six-hundred x $2. 25) sama dengan $4, 1000 - $3, 600 sama dengan $400 Convenient Variable expense efficiency difference = (SQ x SP) – (AQ x SP) = (1, 800 back button $2. 50) – (1, 600 back button $2. 50) = $4, 500 -- $4, 1000 = 500 usd favorable 4)Total material difference = Materials price difference + Materials quantity difference = $2, 000 Farreneheit + $9, 000 U = $7, 000 U 5) Total labor variance = Labor rate variance + Labor efficiency variance = $800 U + $2, four hundred F = $1, 600 F 6)Total variable over head variance = Variable over head spending variance + Adjustable overhead effectiveness variance = $400 F + $500 F = $900 F 7)Total variance = $7, 000 U + $1, 600 F + $900F = $4, 500 U 8)The total material variance is unfavorable this indicates the management should investigate before the contract decision can be made. Total labor variance is usually favorable suggests that the control should continue with fresh labor combination. 2 . Favorable Buy Provider produces a individual item. The cost qualities of the merchandise and of the manufacturing plant receive below: Availablility of units generated each year.............. 6th, 000 Changing costs every unit: Immediate materials $2 Direct labor $4 Changing manufacturing expense $1 Changing selling & administrative charge $3 Set costs every unit: Creation overhead $30, 000 Retailing & management expense $12, 000 Beneath the variable priced at method (1) compute the expense of a unit of product and (2) make a variable costing income statement if five, 000 devices are sold at a price of $20. Believe beginning inventory is equal to zero (0). (30 points) Solution: 1)Cost of a unit = Direct materials + Direct labor + Adjustable manufacturing over head = $2 + $4 + $1

= $7 2)Variable costing income statement Sales Earnings = 5 various, 000 back button $20 sama dengan $100, 1000 Less: Changing cost ----------------------------- $7 back button 5, 1000 = 35 dollars, 000 Changing selling and administrative price ------- $3 x 5 various, 000 sama dengan $15, 1000 Less: set cost Creation overhead ---------------------- $30, 1000 Selling and administrative expenditure --------- $10, 000 Net Income ---------------------------------------$10, 000 3. Bernie Company utilized a regression analysis to predict the annual cost of indirect supplies. The results are shown beneath. a. What is the cost function for this evaluation? (15 points) Answer: The fee function is usually Y = 4, 378 + 2 . 35X m. What can you surmise about the information used in this analysis? Please be specific and concise. (15 points) Answer: The positive slope indicates that there is direct romantic relationship between the total annual cost and indirect supplies. When total annual cost boosts, the indirect material also increases and vice versa. R-square of 0. 9183 implies that 91. 83% of the distinction is the result of the regression model. c. How various data things were used in this kind of analysis? (15 points) Solution: Since the volume of observations is definitely 15, consequently 15 data points were used in this evaluation. d. In the event the activity level is 33, 850, what is the cost of this activity? (15 points) Solution: When By = 33, 850, price would be Con = four, 378 + 2 . thirty-five (33850) = $83, 925. 5 Regular 4, 378 Standard mistake of Con estimate 912 R2 0. 9183 No . of observations 12 Degrees of freedom 12 Coefficient(s) 2 . 35 Regular error of coefficient(s) 0. 437525

four. The Sawaya Hotel’s (Japan) guest-days of occupancy and custodial products expense (in Japanese yen, denoted simply by ¥) over the last seven a few months were: Month Guest-Days of Occupancy

Custodial Supplies Expenditure March four, 000 ¥7, 500, 1000 April 6th, 500 ¥8, 250, 1000 May main, 000 ¥10, 500, 1000 June 12, 500 ¥12, 000, 500 July 12, 000 ¥13, 500, 500 August being unfaithful, 000 ¥10, 750, 500 September several, 500 ¥9, 750, 500 Guest-day is known as a measure of the entire activity in the hotel. For example , a guest who have stays in the hotel for three (3) times is counted as three (3) guest-days. Using the high-low method, idea a cost health supplement for custodial supplies expenditure. Using the price formula you developed, what amount of custodial products expense do you expect to become incurred in a occupancy amount of 11, 500 guestdays? (30 points) Option: 1.

GuestDays Custodial Supplies Expenditure High activity level (July) 12, 500 $13, 500 Low activity level (March) 4, 500 7, 500 Change eight, 000 $ 6, 000

Adjustable cost component: Change in expense/Change in activity = $6, 000/8, 500 guest-days = $0. 75 per guests day Fixed cost component: Custodial products expense in high activity level $13, 500 A lesser amount of variable price element: 12, 000 guest-days × $0. 75 per guest-day being unfaithful, 000 Total fixed price $4, 500 The cost health supplement is $4, 500 monthly plus $0. 75 per guest-day or Y = $4, 500 + $0. 75 Times. 2 . Custodial supplies expenditure for 10, 000 guest-days: Variable price: 11, 500 guest-days × $0. 75 per guest-day $ 8, two hundred fifity Fixed price 4, 500 Total price $12, 750...