07-26-2006, 06:51 AM
have to deal with this type of problems so please tell me how you got it to compare with my results =) it would be great please!!
Problem1
The folowing standards pertain to Breez company's main product, an electric fan
Direct Materials standards
Metal parts 2 sets @ $7.50/set
Electrical parts 1set@ $8.50set
Direct labor standards 1.6 direct labor hrs per fan @ $9.75/direct labor hour
Standard manufacturing overhead rates
Variable #3.00/direct labor hour
Fixed $4.10/direct labor hour
REquired answer both parts
1. compute the standard cost of one fan.
2. this fan sells for $65. Is this an adequate selling price? defend your answer.
___________________________________________________________
Problem 2
Logan company sells its main product for $9 per unit. Variable cost is $5.80/unit. Fixed expenses are $250,000 per month for volumes up to 95,000 units. Above 95,000 units monthly fixed expenses are $300,000.
Required Prepare a monthly flexible budget showing sales, variable expenses, fixed expenses, and operating income for Logan for volume levels of 90,000; 100,000 and 110,000 units.
____________________________________________________________
Problem 3
Burdette company has the following information
Total materials variance $2,386 unfavorable
Materials usage variance $2,800 unfavorable
Actual price per gallon $7.96
Required compute the materials price variance assuming that there was no change in the amount of inventory of this material during the period.
Problem1
The folowing standards pertain to Breez company's main product, an electric fan
Direct Materials standards
Metal parts 2 sets @ $7.50/set
Electrical parts 1set@ $8.50set
Direct labor standards 1.6 direct labor hrs per fan @ $9.75/direct labor hour
Standard manufacturing overhead rates
Variable #3.00/direct labor hour
Fixed $4.10/direct labor hour
REquired answer both parts
1. compute the standard cost of one fan.
2. this fan sells for $65. Is this an adequate selling price? defend your answer.
___________________________________________________________
Problem 2
Logan company sells its main product for $9 per unit. Variable cost is $5.80/unit. Fixed expenses are $250,000 per month for volumes up to 95,000 units. Above 95,000 units monthly fixed expenses are $300,000.
Required Prepare a monthly flexible budget showing sales, variable expenses, fixed expenses, and operating income for Logan for volume levels of 90,000; 100,000 and 110,000 units.
____________________________________________________________
Problem 3
Burdette company has the following information
Total materials variance $2,386 unfavorable
Materials usage variance $2,800 unfavorable
Actual price per gallon $7.96
Required compute the materials price variance assuming that there was no change in the amount of inventory of this material during the period.
