Budgeted contribution margin per carabiner

Reference no: EM13763788

Timmer Bachman founded the Bachman Corpora-tion over 25 years ago. The company's genesis was spurred by the unique climbing apparatus developed by Timmer, an avid mountaineer. Bachman Corporation has continued to produce that first product, but it has now diversified into other out-door activity equipment as well. In fact, the vast majority of the company's revenues are now accounted for by sales of nonclimbing products. Timmer is considering whether his company should continue producing and selling some of its oldest products, all of which relate to mountain climbing.

To begin his decision- making process, Timmer has asked the company's controller, Marin Hennesy, to accumulate data on the original locking carabiner that set the company on its way. Accordingly, Marin accumulated the following data for last year: • Budgeted production and sales: 5,000 carabiners.

Actual production and sales: 6,000 carabiners.
The standard for a carabiner requires 1.5 ounces of material at a budgeted cost of $ 1.52 per ounce and two hours of assembly and testing time at a cost of $ 12.50 per hour.
The carabiner sells for $ 32 each.
Actual production costs for the 6,000 carabiners totaled $ 12,900 for 8,600 ounces of materials and $ 161,700 for 13,200 labor hours.

Required:

A. What was the budgeted contribution margin per carabiner?

B. What was the actual contribution margin per carabiner?

C. What was Bachman's flexible budget variance?

D. What was Bachman's direct material price variance?

E. What was Bachman's direct material usage variance?

F. What was Bachman's direct labor rate variance?

G. What was Bachman's direct labor efficiency variance?

H. What would the sales price variance be if each carabiner sold for $ 33?

I. On the basis of the available information, should Bachman continue making the carabiner?

Reference no: EM13763788

Questions Cloud

Write a summay of the article race class and gender in us : Write a summay of the article RACE, CLASS, AND GENDER IN THE UNITED STATES.

Manufacturing cost per unit : Assuming the company uses variable costing, calculate Polk's manufacturing cost per unit for 2012. (Round answer to 2 decimal places, e.g.10.50.)

Determinant health issues : Many health treatments that address health risks for women are based on research conducted on men.

Create a file manager in linux : Create a file manager in Linux using shell script. It may coverfollowing features:

Budgeted contribution margin per carabiner : What was the budgeted contribution margin per carabiner? What was the actual contribution margin per carabiner?

How is the disability addressed in school : Give a brief summary of the disability. How is the disability addressed in school? What would be your role as an Early Childhood Care Professional if this child were in your class?

Osi model-switching systems-network channel processors : In packet switching, the output links to which a packet should be forwarded is not known before their arrivals. Unlike in time-division multiplexing, there is no telling exactly how many packets from an input will be destined for each output over ..

External analysis of the motorcycle industry : Discuss whether you think PEST analysis and Porter's 5 Forces analysis would be useful tools for H-D executives to help them make wise strategic choices. Give examples to support your arguments and above all, demonstrate that you have a strong gra..

Discuss the numerous ways an early childhood program : Discuss the numerous ways an early childhood program and its staff could provide a safe and appropriate learning environment for Carly and how to adapt the environment to meet her needs.

User Account

All Pages