Reference no: EM132595808
Questions -
Q1. Benton Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $46,000 for purchasing support should be assigned to the individual vendors from the information given as follows:
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Vendor A
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Vendor B
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Units purchased
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180,000
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280,000
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Purchase orders (annual)
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5
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20
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Number of shipments received
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15
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60
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What is the amount of the purchasing costs that should be allocated to Vendor B, assuming Benton uses purchases orders to compute activity-based costs?
Q2. Pouch Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.70 direct labor-hours. The direct labor rate is $10.70 per direct labor-hour. The production budget calls for producing 3,400 units in June and 3,200 units in July. If the direct labor work force is fully adjusted to the total direct labor-hours needed each month, what would be the total combined direct labor cost for the two months?
Q3. The Valenti Company uses flexible budgeting for cost control. Valenti produced 10,700 units of product during October, incurring indirect material costs of $13,300. Valenti's master budget reflected indirect material costs of $187,200 at a production volume of 144,000 units. What was the indirect material cost variance for October?