Acc 201

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Question 1:
1. Activity-cost-driver rate for packing:

,950hours)) = 157.89/ hr

2. ABC system for sugar cookie

A. Estimated overhead cost per 1000 cookies

Oven costs: ,)) x 1 = $110.53

Packing costs: 157.89 x 0.5 = $78.95

? Total overhead costs: $189.48

B. Estimated operating profit for cookies

Selling price:

$0.75 x 1,000 = $750

Less Direct material costs:

$0.15 x 1000 = ($150)

Less Direct labor costs:

$0.02 x 1000 = ($20)

Less total overhead costs:

($189.48)

? Profit: $390.52

3. Traditional system for sugar cookie

A. Estimated overhead cost per 1000 cookies

,)) = $150

B. Estimated operating profit for cookies

Selling price:

$0.75 x 1,000 = $750

Less Direct material costs:

$0.15 x 1000 = ($150)

Less Direct labor costs:

$0.02 x 1000 = ($20)

Less total overhead costs:

($150)

? Profit: $430

Question 2:
a.

b.

|Actual result |Flexible |Standard result | |(Actual input quantity x Actual price) |(Actual input quantity x Budgeted price) |(Budgeted input quantity | | | |x budgeted price) |

Direct material
3, 900 x $7.753,900 x $7.54,000 x $7.5
$30,225 $29,250 $30,000

Price varianceEfficiency variance
$975(U) $750(F)

$225(U)
Flexible budgeted variance

Direct labor:
1,240 x $9.251,240 x $91,200 x $9
$11,470 $11,160 $10,800

Price varianceEfficiency...
tracking img