Dallas Corp. bases its manufacturing overhead on direct labo…
Dallas Corp. bases its manufacturing overhead on direct labor-hours. The variable overhead rate is $4.60 per direct labor-hour. The company’s budgeted fixed manufacturing overhead is $50,240 per month, which includes depreciation of $2,680. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 3,200 direct labor-hours will be required in May. The May budgeted cash disbursements for manufacturing overhead should be:
Read DetailsMontana Inc. is considering Alternative X and Alternative Y….
Montana Inc. is considering Alternative X and Alternative Y. Costs associated with the alternatives are listed below: Alternative X Alternative Y Materials costs $ 40,000 $ 40,000 Processing costs $ 37,000 $ 41,000 Equipment rental $ 13,000 $ 13,000 Occupancy costs $ 15,000 $ 22,000 Are the materials costs and processing costs relevant in the choice between alternatives X and Y?
Read DetailsJeanette Company manufactures and sells a single product. Th…
Jeanette Company manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During June, the company budgeted for 6,200 units, but its actual level of activity was 6,160 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for June: Fixed element per month Variable element per unit Revenue – $ 27.80 Direct labor $ 0 $ 3.10 Direct materials 0 10.20 Manufacturing overhead 37,200 1.10 Selling and administrative expenses 22,800 0.30 Total expenses $ 60,000 $ 14.70 Actual results for June: Revenue $ 178,318 Direct labor $ 18,606 Direct materials $ 60,652 Manufacturing overhead $ 43,896 Selling and administrative expenses $ 24,688 The revenue variance in June would be closest to:
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