Figure 8-8 Rammazzotti, Inc., is looking for feedback on company performance. Th

Question

Figure 8-8

Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below:

Rammazzotti Inc., had the following budgeted data:

Unit sales for 2014                                          26,000

Unit production for 2014                                26,000

Budgeted fixed overhead for 2014:

Supervision                                                     $ 800

Depreciation                                                   2,000

Rent                                                                    100

Budgeted variable costs per unit:

Direct materials                                              $0.15

Direct labor                                                       0.20

Supplies                                                            0.02

Indirect labor                                                    0.05

Power                                                                0.02

The following actually occurred:

Actual unit sales for 2014                               24,000

Actual unit production for 2014                     28,000

Actual fixed overhead for 2014:

Supervision                                                     $ 850

Depreciation                                                   2,000

Rent                                                                    100

Actual variable costs:

Direct materials                                              $3,500

Direct labor                                                       4,900

Supplies                                                               530

Indirect labor                                                    1,250

Power                                                                   470

15. Refer to Figure 8-8. The budgeted cost for direct labor for 2014 was

a. $1,200.

b. $1,300.

c. $4,800.

d. $5,200.

18. Refer to Figure 8-8. The total flexible budgeted costs for 2014 are

a. $10,560.

b. $13,460.

c. $13,510.

d. $15,220.

20. Refer to Figure 8-8. The flexible budget variance for indirect labor for 2014 is

a. $1,250 F.

b. $50 F.

c. $150 F.

d. $1,200 U.

21. Refer to Figure 8-8. The flexible budget variance for total cost for 2014 is

a. $90 F.

b. $140 F.

c. $1,620 F.

d. $50 F.

22. Refer to Figure 8-8. The total actual costs for 2014 were

a. $13,550.

b. $10,650.

c. $13,600.

d. $13,510.

Explanation / Answer

answers

15. d $5200 (26000*0.20)

18.d $15220 (budgeted cost per unit * actual unit produced)

20. b $150F (1400-1250)

21.c $1620F (15220-13600)

22.c $13600

budget actual Unit sales for 2014            26,000.00    24,000.00 Unit production for 2014            26,000.00    28,000.00 fixed overhead for 2014: Supervision                  800.00          850.00 Depreciation               2,000.00      2,000.00 Rent                  100.00          100.00 Total Fixed Cost               2,900.00      2,950.00 variable costs per unit: Direct materials                       0.15               4,200.00      3,500.00 Direct labor                       0.20               5,600.00      4,900.00 Supplies                       0.02                  560.00          530.00 Indirect labor                       0.05               1,400.00      1,250.00 Power                       0.02                  560.00          470.00 Total Variable Cost            12,320.00    10,650.00 Total Cost            15,220.00    13,600.00

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.