Farad, Inc., specializes in selling used trucks. During the month, Farad sold 50 trucks at an average price of $9,000 each. The budget for the month was to sell 45 trucks at an average price of $9,500 each. Compute the dealership’s sales price variance and sales volume variance for the month and classify each as favorable or unfavorable.

Farad, Inc., specializes in selling used trucks. During the month, Farad sold 50 trucks at an average price of $9,000 each. The budget for the month was to sell 45 trucks at an average price of $9,500 each. Compute the dealership’s sales price variance and sales volume variance for the month and classify each as favorable or unfavorable.

Name: Farad, Inc., specializes in selling used trucks. During the month, Far
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Farad, Inc., specializes in selling used trucks. During the month, Farad sold 50 trucks at an average price of $9,000 each. The budget for the month was to sell 45 trucks at an average price of $9,500 each. Compute the dealership’s sales price varian

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 25E: Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000...

See similar textbooks

Similar questions

Jerry Jay is the CEO of Jerry's Jackets (JJ). In June, Jerry expects to produce and sell 3100 jackets, and he expects his June utilities cost to be $8,000 plus $0.70 per jacket. After the month ended, it was reported that 3000 jackets were sold in June and $10,190 was spent on utilities. What is the spending variance for utilities in June?
Milltown Company sells used cars. During the month, the dealership sold 30 cars at an average price of $23,000 each. The budget for the month was to sell 26 cars at an average price of $24,200. Compute the dealership’s total sales variance for the month. Multiple choice. $36,000 unfavorable. $60,800 favorable. $36,000 favorable. $96,800 unfavorable. $96,800 favorable.
Misty McDougall is the manager of the Adams Bagel Shop. The corporate office had budgeted her store to sell 2,600 ham sandwiches during the week beginning July 17. Each sandwich was expected to contain 7 ounces of ham. During the week of July 17, the store actually sold 3,200 sandwiches and used 22,900 ounces of ham. The standard cost of ham is $0.17 per ounce. The variance report from company headquarters showed an unfavorable materials usage variance of $799. Ms. McDougall thought the variance was too high, but she had no accounting background and did not know how to register a proper objection. Required a. Determine the material usage variance. Note: Indicate the effect of the variance by selecting favorable (F) or unfavorable (U), and select "None" if there is no effect (i.e., zero variance). Material usage variance Prey 1 of 5 MacRock Next >
Sunland Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring a professional cleaning service. The managers at Sunland are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed-MOH costs for the year were $2,534,400. The company's standards for one gallon of cleaning solution are as follows, along with actual information for the month. DM DL Variable-MOH Fixed-MOH ● ● ● Standard Quantity per Unit 0.5 gallons of solution 0.3 DL hours Actual results for January: ● 2.0 machine hours 2.0 machine hours. Show Transcribed Text Show Transcribed Text 26,000 gallons were actually produced. Cost of DM purchased was $250,560 for 14,400 gallons of solution. DM used in production was 12,740 gallons. Cost of DL was $133,796 for 8,060 DL hours worked. Variable-MOH cost was $117,390 for 54,600 machine hours used. Fixed-MOH cost was $223,860. Fixed-MOH price variance $ $17.00 per gallon…
Jerry Jay is the CEO of Jerry's Jackets (JJ). In June, Jerry expects to produce and sell 3100 jackets, and he expects his June utilities cost to be $8,000 plus $0.70 per jacket. After the month ended, it was reported that 3000 jackets were sold in June and $10,190 was spent on utilities. What is the spending variance for utilities in June? Round to the nearest whole number. If the variance is Favorable, enter a positive value. If unfavorable, enter a negative value.
J&J Co. provides house cleaning services. The company uses the number of jobs to measure activity. At the beginning of March, the company budgeted for 60 jobs, but the actual number of jobs turned out to be 70. Wages and salaries expense is a mixed cost. Supplies expense is a variable cost. Transportation expense is a fixed cost. Here is a report comparing the actual vs. budgeted revenues and costs for the month of March: What is the amount of Supplies Expense in the Flexible Budget?
Magnus, Inc. manufactures bedding sets. The budgeted production is for 61,000 comforters this year. Each comforter requires 6.5 yards of material. The estimated January 1 beginning inventory is 29,000 yards with the desired ending balance of 36,000 yards of material. The material costs $4.50 per yard. Determine the materials budget for the year. Plus Less Total Total Unit price (per Total req'd for inventory inventory to be to be MAGNUS, INC. Direct Materials Purchases Budget For the Year Ending December 31, 20Y9 : X $ $
Dermody Snow Removal's cost formula for its vehicle operating cost is $3,060 per month plus $336 per snow-day. For the month of December, the company planned for activity of 18 snow-days, but the actual level of activity was 20 snow-days. The actual vehicle operating cost for the month was $9,385. The spending variance for vehicle operating cost in December would be closest to:
Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,640 per month plus $47 per boat. For the month of April, the company planned for activity of 60 boats, but the actual level of activity was 14 boats. The actual cleaning equipment and supplies for the month was $3,420. The activity variance for cleaning equipment and supplies in April would be closest to:
Dermody Snow Removal's cost formula for its vehicle operating cost is $2,900 per month plus $320 per snow-day. For the month of December, the company planned for activity of 15 snow-days, but the actual level of activity was 13 snow- days. The actual vehicle operating cost for the month was $7,980. The spending variance for vehicle operating cost in December would be closest to:
Reef Industries produces almond milk and uses a standard cost accounting system. A unit of finished goods is one gallon of almond milk. The standard price of almonds is $4.00 per pound and the standard quantity of almonds per gallon of milk is 1.20 pounds. During the month of July, the actual cost of the almonds purchased and used is $148,900, the price variance is $3,750 favorable, and the quantity variance is $11,650 unfavorable. How many gallons of almond milk did Reef produce in July? Round to the nearest whole number. O 29,375 gallons O 28,594 gallons O 32,667 gallons O 33,448 gallons O None of the above
6. Tettleton Corporation is a medium-sized furniture manufacturer. In order to manufacture its product, Tettleton purchases lumber and other supplies it needs in production from selected vendors. These vendors require Tettleton to pay for one-third of the supplies in the month of purchase; the remaining payment is due the following month. Tettleton pays according to this policy, since late payments are assessed additional interest charges. Assume that, based on the direct materials purchases budget, Tettleton expects to make purchases in the following amounts during the first quarter: January February. March... $24,000 $36,000 $21,000 In addition to these purchases. Tettleton expects to incur a total of $30,000 of other expenses each month. These expenses are paid as they are incurred. Prepare Tettleton's cash disbursements budget for the first quarter assuming that accounts payable related to purchases was $28,000 on December 31st.