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ACC350 Final Exam-4 problems A+ answer




Question;ACC350;Final Exam;Fruit-n-Berries;Inc., manufactures a product called Fruta.;The company uses a standard cost system and has established the;following standards for one (1) unit of Fruta;Standard Quantity;Standard Price or Rate;Standard Cost;Direct materials;1.5 pounds;$6 per pound;$9.00;Direct labor;0.6 hours;$12 per hour;7.20;Variable;overhead;0.6 hours;$2.50 per;hour;1.50;$17.70;The following activities were recorded by;the company relative to the production of Fruta;a. The company produced 3,000 units during the month.;b. A total of 8,000 pounds of material were purchased at a cost of;$46,000.;c. There was no beginning inventory of materials on hand to start the;month, at the end of the month, 3,000 pounds of material remained in the;warehouse unused.;d. The company employs 10 persons to work on the production of;Fruta. During June, each worked an;average of 160 hours at an average rate of $12.50 per hour.;e.;Variable overhead is assigned to Fruta on a;basis of direct labor hours. Variable;overhead costs during the month totaled $3,600.;If management is anxious to determine the;efficiency of the activities surrounding the production of Fruta, (1) compute;the materials price and quantity variances, (2) compute the labor rate and;efficiency variances, (3) compute the variable overhead spending and efficiency;variances, (4) compute the total materials variance, (5) compute the total;labor variance, (6) compute the total variable overhead variance, (7) compute the;total variance and (8) what would you recommend to management? (120 points);The Good;Buy Company produces a single product.;The cost characteristics of the product and of the manufacturing;plant are given below;Number;of units produced each year.............. 6,000;Variable;costs per unit;Direct;materials;$2;Direct;labor;$4;Variable;manufacturing overhead;$1;Variable selling;administrative expense;$3;Fixed costs per;unit;Manufacturing;overhead;$30,000;Selling;administrative expense;$10,000;Under the variable costing method (1);compute the cost of a unit of product and (2) prepare a variable costing income;statement if 5,000 units are sold at a price of $20. Assume beginning inventory is equal to zero;(0). (30 points);Bernie;Company used a regression analysis to predict the annual cost of indirect;materials. The results are shown;below.;a. What is the cost function for this analysis? (15 points);b. What can you surmise about the data used in this analysis? Please be specific and concise. (15 points);c. How many data points were used in this analysis? (15 points);d. If the activity level is 33,850, what is the cost of this activity? (15 points);Constant;4,378;Standard;error of Y estimate;912;R2;0.9183;No.;of observations;12;Degrees;of freedom;10;Coefficient(s);2.35;Standard;error of coefficient(s);0.437525;The;Sawaya Hotel?s (Japan) guest-days of occupancy and custodial supplies;expense (in Japanese yen, denoted by ?) over the last seven months were;Month;Guest-Days of;Occupancy;Custodial Supplies;Expense;March;4,000;?7,500,000;April;6,500;?8,250,000;May;8,000;?10,500,000;June;10,500;?12,000,000;July;12,000;?13,500,000;August;9,000;?10,750,000;September;7,500;?9,750,000;Guest-day is a measure of the overall;activity at the hotel. For example, a;guest who stays at the hotel for three (3) days is counted as three (3);guest-days. Using the high-low method;estimate a cost formula for custodial supplies expense. Using the cost formula you developed, what;amount of custodial supplies expense would you expect to be incurred at an;occupancy level of 11,000 guest-days? (30;points)


Paper#42539 | Written in 18-Jul-2015

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