Reference no: EM131784126

Assignment

Timmer Bachman founded the Bachman Corporation over 25 yearsago. The company's genesis was spurred by the unique climbingapparatus developed by Timmer, an avid mountaineer. BachmanCorporation has continued to produce that first product, but it hasnow diversified into other outdoor activity equipment as well. Infact, the vast majority of the company's revenues are now accountedfor by sales of nonclimbing products. Timmer is considering whetherhis company should continue producing and selling some of itsoldest products, all of which relate to mountain climbing.

To begin his decision-making process, Timmer has asked thecompany's controller, Marin Hennesy, to accumulate data on theoriginal locking carabiner that set the company on its way.Accordingly, Marin accumulated the following data for lastyear:

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 ata budgeted cost of $1.52 per ounce and two hours of assembly andtesting time at a cost of $12.50 per hour.

The carabiner sells for $32 each.

Actual production costs for the 6,000 carabiners totaled $12,900for 8,600 ounces of materials and $161,700 for 13,200 laborhours.

Submit answers in word or excel format. Not picture format. Thank you.

A. What was the budgeted contribution marginper carabiner?

B. What was the actual contribution margin per carabiner?

C. What was Bachman's sales volume variance for the year?

D. What was Bachman's flexible budget variance?

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

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

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

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

I. What would the sales price variance be ifeach carabiner sold for $33?

J . Based on the available information,should Bachman continue making the carabiner?