3.Tractor Corporation produces toy tractors. What is the combined total of the f
ID: 2439461 • Letter: 3
Question
3.Tractor Corporation produces toy tractors. What is the combined total of the flexible budget variances?The company uses the following direct cost categories:
Category
Standard Inputs
for 1 output
Std. Cost
per input
Direct Materials
4.00
$12.50
Direct Labour
1.40
9.50
Direct Marketing
0.54
5.50
Actual performance for the company is shown below:
Actual output: 5,000 units
Direct Materials:
Materials costs
$299,000
Input purchased and used
23,000
Actual price per input
$13.00
Direct Manufacturing Labour:
Labour costs
$95,000
Labour-hours of input
9,500
Actual price per hour
$10.00
Direct Marketing Labour:
Labour costs
$40,000
Labour-hours of input
5,000
Actual price per hour
$8.00
Select one: a. $78,500 unfavourable b. $77,500 unfavourable c. $99,000 unfavourable d. $102,650 unfavourable
3.Tractor Corporation produces toy tractors. What is the combined total of the flexible budget variances?
The company uses the following direct cost categories:
Category
Standard Inputs
for 1 output
Std. Cost
per input
Direct Materials
4.00
$12.50
Direct Labour
1.40
9.50
Direct Marketing
0.54
5.50
Actual performance for the company is shown below:
Actual output: 5,000 units
Direct Materials:
Materials costs
$299,000
Input purchased and used
23,000
Actual price per input
$13.00
Direct Manufacturing Labour:
Labour costs
$95,000
Labour-hours of input
9,500
Actual price per hour
$10.00
Direct Marketing Labour:
Labour costs
$40,000
Labour-hours of input
5,000
Actual price per hour
$8.00
Select one: a. $78,500 unfavourable b. $77,500 unfavourable c. $99,000 unfavourable d. $102,650 unfavourable
The company uses the following direct cost categories:
Category
Standard Inputs
for 1 output
Std. Cost
per input
Direct Materials
4.00
$12.50
Direct Labour
1.40
9.50
Direct Marketing
0.54
5.50
Actual performance for the company is shown below:
Actual output: 5,000 units
Direct Materials:
Materials costs
$299,000
Input purchased and used
23,000
Actual price per input
$13.00
Direct Manufacturing Labour:
Labour costs
$95,000
Labour-hours of input
9,500
Actual price per hour
$10.00
Direct Marketing Labour:
Labour costs
$40,000
Labour-hours of input
5,000
Actual price per hour
$8.00
Select one: a. $78,500 unfavourable b. $77,500 unfavourable c. $99,000 unfavourable d. $102,650 unfavourable
Explanation / Answer
Correct Answer (D) $102650 Unfavorable
Actual DATA for
5000
units
Quantity (AQ)
Rate (AR)
Actual Cost
Direct Material
23000
$ 13.00
$ 299,000.00
Direct labor
9500
$ 10.000
$ 95,000.00
Variable Overhead
5000
$ 8.00
$ 40,000.00
Total Actual Cost
$ 434,000.00
Standard DATA for
5000
units
Quantity (SQ)
Rate (SR)
Standard Cost
Direct Material
20000
$ 12.50
$ 250,000.00
Direct labor
7000
$ 9.50
$ 66,500.00
Variable Overhead
2700
$ 5.50
$ 14,850.00
Total Standard Cost
$ 331,350.00
Total Standard Cost
$ 331,350.00
Total Actual Cost
$ 434,000.00
Flexible Budget variance
$ (102,650.00) Unfavorable
Variance is unfavorable since actual cost is more than standard cost.
Correct Answer (D) $102650 Unfavorable
Actual DATA for
5000
units
Quantity (AQ)
Rate (AR)
Actual Cost
Direct Material
23000
$ 13.00
$ 299,000.00
Direct labor
9500
$ 10.000
$ 95,000.00
Variable Overhead
5000
$ 8.00
$ 40,000.00
Total Actual Cost
$ 434,000.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.