Persimmon Corp. manufactures car batteries in two models. The following information Persimmon is provided for the month of August Budgeted 5,200 3,200 Total contribution margin $250,000 The budgeted average unit contribution margin is $24.50 Budgeted unit sales for the entire industry were 400,000 units of all model types, and actual unit sales for the industry were 500,000 units. What is the Market size variance? Regular model sales in units Premium model sales in units OA. $60,000 (F) OB. $40,123 (F) Ⓒc.$51,450 (F) OD. $60,000 (U) Actual 5,500 2,500

Persimmon Corp. manufactures car batteries in two models. The following information Persimmon is provided for the month of August Budgeted 5,200 3,200 Total contribution margin $250,000 The budgeted average unit contribution margin is $24.50 Budgeted unit sales for the entire industry were 400,000 units of all model types, and actual unit sales for the industry were 500,000 units. What is the Market size variance? Regular model sales in units Premium model sales in units OA. $60,000 (F) OB. $40,123 (F) Ⓒc.$51,450 (F) OD. $60,000 (U) Actual 5,500 2,500

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...

See similar textbooks

Similar questions

Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per vehicle. For the month of April, the company planned for activity of 95 vehicles, but the actual level of activity was 135 vehicles. The actual materials and supplies for the month was $4,850. 1. The materials and supplies in the planning budget for April would be closest to: A. $4,850B. $5,045C. $3,413D. $4,365 2. The activity variance for materials and supplies in April would be closest to: A. $680 UB. $485 FC. $680 FD. $485 U 3. The spending variance for materials and supplies in April would be closest to: A. $195 FB. $485 FC. $195 UD. $485 U
Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per vehicle. For the month of April, the company planned for activity of 95 vehicles, but the actual level of activity was 135 vehicles. The actual materials and supplies for the month was $4,850. 1. The materials and supplies in the planning budget for April would be closest to: A. $4,850B. $5,045C. $3,413D. $4,365 2. The materials and supplies in the flexible budget for April would be closest to: A. $6,203B. $4,850C. $4,365D. $5,045 3. The activity variance for materials and supplies in April would be closest to: A. $680 UB. $485 FC. $680 FD. $485 U 4. The spending variance for materials and supplies in April would be closest to: A. $195 FB. $485 FC. $195 UD. $485 U Please show the steps of calculate the answers.
The following information pertains to the JAG Corporation for the month of July 100,000 units were sold in July at a selling price per unit of $24. The standard unit manufacturing costs for the month were: VCU $12 FCU 4 Total Mfg cost per unit $16 Selling and administrative costs for the month were: $5 VCU Total fixed costs $400,000 The unit rate for fixed manufacturing costs is a predetermined rate based on a capacity level of 150,000 units per month. Production for July was 45.000 units less than sales. Ending inventory on June 30 consisted of 80,000 units. Actual fixed manufacturing costs were $600,000. Instructions: Prepare an absorption costing income statement that includes the calculations of cost of goods sold and the adjustment for any PVV.
RantauBags Company plans to sell 10,000 handbags at $400 each in the comingyear. Data on cost per handbag are as follows:Direct materials $80Direct labour $125Variable overhead $15Variable selling expense is a commission of 5 per cent of the sales price. Total fixedfactory overhead amounts to $800,000. Fixed selling and administrative expensetotalled $400,000.Required:1) Prepare a contribution margin income statement for RantauBags for the comingyear.2) What is the effect on RantauBags operating income if 13,000 units aremanufactured and sold next year? Show computation.3) Calculate the number of units RantauBags must sell to breakeven.4) Calculate the number of units RantauBags must sell to achieve a targetoperating income of $240,000.5) Calculate the margin of safety in sales ($) for the coming year.6) Discuss TWO benefits of manager's possessing the knowledge/understanding oncost-volume-profit analysis.
Picozzi Snow Removal's cost formula for its vehicle operating cost is $2,060 per month plus $306 per snow-day. For the month of January, the company planned for activity of 16 snow-days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the month was $7,720. The vehicle operating cost in the planning budget for January would be closest to: Multiple Choice A. $6,956 B. $6,862 C. $7,720 D. $7,568
Picozzi Snow Removal's cost formula for its vehicle operating cost is $2,060 per month plus $306 per snow-day. For the month of January, the company planned for activity of 16 snow-days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the month was $7,720. The vehicle operating cost in the planning budget for January would be closest to: Multiple Choice $7,720 $6,862 O $6,956 $7,568
Qinto Company sells two types of products: basic and deluxe. The company provides technical support for its products at a budgeted overhead cost of $252,000 per year. The company allocates technical support cost based on 10,500 budgeted technical support calls per year. 1. Compute the activity rate for technical support using activity-based costing.2. During January, Qinto received 640 calls on its deluxe model and 120 calls on its basic model. Allocate technical support costs to each model.
RantauBags Company plans to sell 10,000 handbags at $400 each in the coming year. Data on cost per handbag are as follows: Direct materials $80Direct labour $125Variable overhead $15Variable selling expense is a commission of 5 per cent of the sales price. Total fixed factory overhead amounts to $800,000. Fixed selling and administrative expense totalled $400,000. Required: (a) Prepare a contribution margin income statement for RantauBags for the coming year.(b) What is the effect on RantauBags operating income if 13,000 units are manufactured and sold next year? Show computation.(c) Calculate the number of units RantauBags must sell to breakeven.(d) Calculate the number of units RantauBags must sell to achieve a target operating income of $240,000.(e) Calculate the margin of safety in sales ($) for the coming year.(f) Discuss TWO benefits of manager's possessing the knowledge/understanding on cost-volume-profit analysis.
A manufacturer of toy purchase components from subcontractors for assembly into complete toys. Each radio requires three units each of part X, which has a standard cost of P2.90 per unit. During August, the company had the following experience with respect to part X: Purchases P72,000 24,000 Units Consumed in manufacturing 20,000 units Toys Manufactured 6,000 what is the amount that will be shown on a flexible budget part x usage during the month of august?
Veritas Company constructed the following formula for its monthly utility cost. Total utility cost $2,100 + ($5.50 x Labor hours) Assume that 557 labor hours are budgeted for the month of April. If Botana Company incurs 12,600 labor hours for the year, what would be the estimate of total utility cost for the year?