Question: Purdue Inc. manufactures tires for large auto
Purdue Inc. manufactures tires for large auto companies. It uses standard costing and allocates variable and fixed manufacturing overhead based on machine-hours. Required: For each independent scenario given, indicate whether each of the manufacturing variances will be favourable or unfavourable or, in case of insufficient information, indicate “cannot be determined.†
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Fixed 伸啡 Variable Variable Fixed Overhead Overhead Overhead Overhead Production- Efficiency Variance Rate Rate Volume Scenario Variance Variance Variance Production output is 5% more than budgeted, and actual fixed manufacturing overhead costs are 6% more than budgeted Production output is 10% more than budgeted; actual machine-hours are 5% less than budgeted Production output is 8% less than budgeted Actual machine-hours are 15% greater than flexible-budget machine-hours Relative to the flexible budget, actual machine-hours are 10% greater, and actual variable manufacturing over- head costs are 15% greater
> Publish Inc. has two departments: printing and binding. Each department has one direct cost category (direct materials) and one indirect cost category (conversion costs). This problem focuses on the binding department. Books that have undergone the print
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> Porter Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: assembly and finishing. This problem focuses on the assembly department. The process-costing system at Porter has a single direc
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> Refer to the information in Problem 17-34. Suppose that Larsen Corp. uses the FIFO method instead of the weighted average method in all of its departments. The only changes to Problem 17-34 under the FIFO method are that total transferred-in costs of beg
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> Your Expert (YE) produces and markets DVDs for sal e to the business community. It hires well-known business speakers to present new developments in their area of expertise in DVD format. The compensation paid to each speaker is individually negotiated.
> Greenbold Manufacturing has four divisions named after its locations: Ontario, Alberta, Yukon, and Saskatchewan. Corporate headquarters is in Manitoba. Greenbold corporate headquarters incurs $5,600,000 per period, which is an indirect cost of the divisi
> Your Market (YM) runs two convenience stores, one in Vancouver and one in Surrey. Operating income for each store in 2015 follows: The equipment has a remaining useful life of one year and zero disposal price. In a senior management meeting, Maria Lope
> PétaleParfum (PP) manufactures and sells upscale perfumes. In recent months, PP has started selling its products in bundled form, as well as in individual form. Sales in 2015 of three products that have been sold individually are as follows:
> Bear Hill operates a five-star hotel with a world-recognized championship golf course. It has a decentralized management structure. There are three divisions: ■ Lodging (rooms, conference facilities) ■ Food (restaurants and in-room service) ■ Recreation
> TC Motors assembles and sells motor vehicles, and uses standard costing. Actual data relating to April and May 2015 are The selling price per vehicle is $24,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost p
> Glat Corporation manufactures a product called the glat, which it sells to merchandising firms such as International House of Glats (IHoG), Glats-R-Us (GRU), Glat Marcus (GM), Glat City (GC), Good Glats (GG), and Glat-mart (Gmart). The list price of a gl
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> Lee Manufacturing makes a component they call P14-31. This component is manufactured only when ordered by a customer, so Lee keeps no inventory of P14-31. The list price is $100 per unit, but customers who place “large”
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> The Department of National Defence (DND) has the difficult decision of deciding which military bases to close down. Military and political factors obviously matter, but cost savings are also an important factor. Consider two naval bases—one in Vancouver,
> Debbie’s Delight attains a 10% market share based on total sales of the Calgary market. The total Calgary market is expected to be 1,000,000 kilograms in sales volume for August 2015. The actual total Calgary market for August 2015 was 960,000 kilograms
> Debbie’s Delight Inc. operates a chain of cookie stores. Budgeted and actual operating data for its three Calgary stores for August 2015 are as follows: Debbie’s Delight focuses on contribution margin in its variance
> Blank Slate’s senior vice-president of marketing prepared his budget at the beginning of the third quarter, assuming a 25% market share based on total sales. The total tablet market was estimated by Fool instead Research to reach sales of 400,000 units w
> Blank Slate Inc. (BSI) produces tablet computers. BSI markets three different handheld models. SlatePro is a souped-up version for the executive on the go; Slate is a consumer-oriented version; and SlateLite is a stripped down version for the young adult
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> Spring Distribution has decided to analyze the profitability of five new customers. It buys bottled water at $12 per case and sells to retail customers at a list price of $14.40 per case. Data pertaining to the five customers are: Activity â€
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> The Cumberland Mine is a small mine that extracts coal in central Alberta. Each tonne of coal mined is 40% Grade A coal, 40% Grade B coal, and 20% coal tar. All output is sold immediately to a local utility. In May, Cumberland mined 1,000 tonnes of coal.
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