At the beginning of the period, the Fabricating Department budgeted direct labor of $51,000 and equipment depreciation of $59,000 for 3,400 hours of production. The department actually completed 4,100 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. $

Answers

Answer 1
Answer:

Answer:

=  $120,500.00

Explanation:

Flexible budget is that which  is that which recognizes the cost behavior and is used for control purpose. It is prepared based on the actual level of activity achieved.

Kindly note that the $59,000 depreciation is a fixed cost which do not vary with the hours of production.

The flexible budget for the department will be

Direct Labour budget = ( 51000/3400) × 4,100

                         =  $61,500.00

Equipment depreciation= $59,000

Total flexible budget = $61,500.00 + $59,000

                                   =  $120,500.00


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Nora is interested in a career in human resource management. She expected her first job to focus on giving employees access to information and enrollment forms for training, benefits, and other programs. However, she has since learned that HR employees spend less time doing that kind of work. Which trend is behind that change

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Answer:

employees can now get such information through self-service

Explanation:

The trend behind this change is that, employees can now get such information through self-service. Human resource Employees spend less time doing such work now because such information is readily available on the internet and can be accessed by any employee at anytime that they want to do so on their own.

EA8. LO 2.2Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced?

Answers

Answer:

$22.5 per unit

Explanation:

Given that,

When 15,000 units produced,

Company has fixed costs per unit = $18 per unit

Company has variable cost per unit = $9 per unit

Therefore,

Total fixed cost at 15,000 units:

= 15,000 units × $18 per unit

= $270,000

Per unit Fixed cost at 12,000 units:

= Total fixed cost ÷ 12,000 units

= $270,000 ÷ 12,000 units

= $22.5 per unit

Final answer:

To find the fixed costs per unit when 12,000 units are produced, divide the total fixed costs by the number of units produced at that level.

Explanation:

To find the fixed costs per unit when 12,000 units are produced, we first need to calculate the total fixed costs at 15,000 units and then divide it by 15,000 to find the fixed cost per unit at that level of production. Given that the fixed costs are $18 per unit at 15,000 units, the total fixed costs at that level would be 15,000 units multiplied by $18, which equals $270,000. To find the fixed costs per unit at 12,000 units, we divide the total fixed costs of $270,000 by 12,000 units, resulting in a fixed cost per unit of $22.50.

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An Army Corps of Engineers project for improving navigation on the Ohio River will have an initial cost of $6,150,000 and annual maintenance of $115,000. Benefits for barges and paddle wheel touring boats are estimated at $775,000 per year. The project is assumed to be permanent, and the discount rate is 12% per year. Determine if the Corps should proceed with the project.What will be an ideal response?

Answers

Answer:

The project should be rejected because the costs are larger than the benefits.

Explanation:

EAW = equivalent annual worth = equivalent annual benefit - equivalent annual cost

equivalent annual cost = ($6,150,000 x 12%) + $115,000 = $853,000

equivalent annual benefit = $775,000

EAW = $775,000 - $853,000 = -$78,000

since the EAW is negative, then the project should not be carried out.

Another way to calculate this is by dividing benefits by costs. If the answer is 1 or higher, then the project should be accepted:

B/C = $775,000 / $853,000 = 0.9086 ≤ 1, project rejected

TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product.Standard Quantity Standard Price Standard Cost

Direct Materials 10 pounds $ 1.90 per pound $ 19.00
Direct Labor 0.30 hour $ 6.80 per hour 2.04
$ 21.04

During November, TaskMaster purchased 200,000 pounds of direct materials at a total cost of $440,000. The total factory wages for November were $48,000, 80% of which were for direct labor. TaskMaster manufactured 19,000 units of product during November using 175,000 pounds of direct materials and 6,000 direct labor hours.

What is the direct labor price (rate) variance for November?

Answers

Answer:

$2,400 Favourable

Explanation:

direct labor price (rate) variance =(Aq×Ap)-(Aq×Sp)

                                                      =(6,000×$6.40) - (6,000×$ 6.80)

                                                      = $2,400 Favourable

Ap = (48,000×80%)/6,000

     = $6.40

Answer:

$2,400 Favourable

Explanation:

direct labor price (rate) variance =(Aq×Ap)-(Aq×Sp)

                                                     =(6,000×$6.40) - (6,000×$ 6.80)

                                                     = $2,400 Favourable

Ap = (48,000×80%)/6,000

    = $6.40

Explanation:

Of the following groups, which benefits most from a government price support program that establishes a floor price for an agricultural product that is higher than the product's market clearing price? Select one: a. Consumers, who purchase more units of the product than they did before the price support program was implemented

b. Taxpayers, who no longer must provide funds to purchase surplus units of the product once the price support program is in place

c. The government, which receives subsidy payments from producers that are required to sell more of the product at a higher price under the government's program

d. Producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues

Answers

Answer:

d. Producers, who earn a higher price on the sale of each unit and also sell more units, thereby unambiguously earning higher revenues

Explanation:

A government price support program is when the government impose a price limit on a product to control the price of the product i.e price floor, and also the purchase of any surplus. The price floor and the purchase of any surplus for the product encourages the producers to produce more of the product.

Since price floor must be higher than the equilibrium price for it to be effective, the producers of the agricultural product earn more by selling in units and also earn more for selling any surplus to the government.

A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects _____________ the value of the goods and the buyer had a legitimate reason for the initial acceptance.

Answers

Answer:

A buyer who has accepted goods may later revoke the acceptance if the buyer can show that the defects substantially impair the value of the goods and the buyer had a legitimate reason for the initial acceptance.

Explanation:

This statement is defined in § 2-608. Revocation of Acceptance in Whole or in Part. of Article 2 - Sales of the Uniform Commercial Code (UCC).

The buyer may revoke his acceptance of a lot or commercial unit whose non-conformity substantially impairs its value to him if he has accepted it

(a) on the reasonable assumption that its non-conformity would be cured and it has not been seasonably cured; or

(b) without discovery of such non-conformity if his acceptance was reasonably induced either by the difficulty of discovery before acceptance or by the seller's assurances.

(2) Revocation of acceptance must occur within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by their own defects. It is not effective until the buyer notifies the sellerof it.

(3) A buyer who so revokes has the same rights and duties with regard to the goodsinvolved as if he had rejected them.

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