This topic contains a solution. Click here to go to the answer

Author Question: Activity-based costing, batch-level variance analysis Audrina's Fleet Feet, Inc., produces dance ... (Read 45 times)

Cooldude101

  • Hero Member
  • *****
  • Posts: 557
Activity-based costing, batch-level variance analysis
 
  Audrina's Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping department records both variable direct batch-level costs and fixed batch-level overhead costs. The following information pertains to shipping department costs for 2014.
 
  Required:
  1. What is the static budget number of crates for 2014?
  2. What is the flexible budget number of crates for 2014?
  3. What is the actual number of crates shipped in 2014?
  4. Assuming fixed overhead is allocated using crate-packing hours, what is the predetermined fixed overhead allocation rate?
  5. For variable direct batch-level costs, compute the price and efficiency variances.
  6. For fixed overhead costs, compute the spending and the production-volume variances.

Question 2

Jamie's Lighting Company paid rent for the month, 2,500 . What are the effects on the fundamental accounting equation?
 a. Assets increase 2,500; liabilities, no effect; owner's equity increases 2,500.
  b. Assets decrease 2,500; liabilities, no effect; owner's equity increases 2,500.
  c. Assets decrease 2,500; liabilities, decrease 2,500; owner's equity, no effect.
  d. Assets decrease 2,500; liabilities, no effect; owner's equity decreases 2,500.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

blakcmamba

  • Sr. Member
  • ****
  • Posts: 335
Answer to Question 1

1. Static budget number of crates = Budgeted pairs shipped / Budgeted pairs per crate
= 225,000/15
= 15,000 crates

2. Flexible budget number of crates = Actual pairs shipped / Budgeted pairs per crate
= 180,000/15
= 12,000 crates

3. Actual number of crates shipped = Actual pairs shipped / Actual pairs per box
= 180,000/10
= 18,000 crates

4. Static budget number of hours = Static budget number of crates  budgeted hours per box
= 15,000  0.9 = 13,500 hours

Fixed overhead rate = Static budget fixed overhead / static budget number of hours
= 54,000/13,500
= 4.00 per hour

5. Variable Direct Variance Analysis for Audrina's Fleet Feet, Inc. for 2014

Actual Actual Hours Budgeted Hours Allowed for
Variable Cost  Budgeted Rate Actual Output  Budgeted Rate
(18,000  1.1  16) (18,000  1.1  18) (12,000  0.9  18)
316,800 356,400 194,400

39,600 F 162,000 U
Price variance Efficiency variance

6. Fixed Overhead Variance Analysis for Audrina's Fleet Feet, Inc. for 2014

Actual Static Budget Budgeted Hours Allowed for
Fixed Overhead Fixed Overhead Actual Output  Budgeted Rate
(12,000  0.9  4.0)
56,500 54,000 43,200

2,500 U 10,800 U
Spending variance Production volume variance

Answer to Question 2

D




Cooldude101

  • Member
  • Posts: 557
Reply 2 on: Jul 6, 2018
YES! Correct, THANKS for helping me on my review


shewald78

  • Member
  • Posts: 340
Reply 3 on: Yesterday
Excellent

 

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

For a complete list of videos, visit our video library