Reference no: EM132344247
Question
1 Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:
Direct material of 4.50 yards at $5.00 per yard
Direct labor of 2.00 hours at $16.00 per hour
Overhead applied per sleeping bag at $19.00
In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $5.70 per yard. The labor used was 11,700 hours at an average rate of $19.50 per hour. The actual overhead spending was $96,200.
Determine the labor rate variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number.
2 The following totals are used to create CVP Income Statement for Frederick Company for FY2018:
Frederick Company
Selected Financial Figures
For the Year Ended 12/31/18
Sales (100 units) $10,000
Variable Costs:
Direct Labor $1,950
Direct Materials 1,250
Factory Overhead (variable) 2,000
Selling Expenses (variable) 600
Administrative Expenses (variable) 500
Fixed Costs:
Factory Overhead (fixed) $600
Selling Expenses (fixed) 1,000
Administrative Expenses (fixed) 1,000
Frederick Company utilizes a JIT production system and there are no Raw Materials, Work-in-Process or Finished Goods inventories. Use this information to determine FY 2018 Contribution Margin Percentage. Enter percentage to one decimal place. (example enter 35.5% as 35.5)
The following totals are used to create CVP Income Statement for Frederick Company for FY2018:
Frederick Company
Selected Financial Figures
For the Year Ended 12/31/18
Sales (100 units) $10,000
Variable Costs:
Direct Labor $1,400
Direct Materials 1,450
Factory Overhead (variable) 2,000
Selling Expenses (variable) 600
Administrative Expenses (variable) 500
Fixed Costs:
Factory Overhead (fixed) $600
Selling Expenses (fixed) 1,000
Administrative Expenses (fixed) 1,000
Frederick Company utilizes a JIT production system and there are no Raw Materials, Work-in-Process or Finished Goods inventories. Use this information to determine the FY 2016 breakeven point in units. Round and enter as a whole number.