It is further estimated that small lamp production will

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Reference no: EM13572526

Diamond Company produces a chair that requires 5 yds. of material per unit. The standard price of one yard of material is $7.50. During the month, 8,500 chairs were manufactured, using 40,000 yards at a cost of $7.60. Determine the (a) price variance, (b) quantity variance, and (c) cost variance

2- Some items are omitted from each of the following condensed divisional income statements of Willis Inc (8 points):


Division L

Division M

Division N

Sales

$         (1)

$320,000

$580,000

Cost of goods sold

480,000

120,000

$        (5)

Gross profit

$220,000

$        (3)

$180,000

Operating expenses

    95,000

160,000

$        (6)

Income from operations

$        (2)

$        (4)

$  75,000

(a)

Determine the amount of the missing items, identifying them by number.

(b)

Based on income from operations, which division is the most profitable?

3-Delicious Cake Factory normally sells their specialty cake for $22. An offer to buy 100 cakes for $18 per cake was made by an organization hosting a national event in the city. The variable cost per cake is $12. A special decoration per cake will add another $1 to the cost. Determine the differential income or loss per cake from selling the cakes

4-Nite Lite Factory produces two similar products - small lamps and desk lamps. The total plant budget is $800,000 with 640,000 estimated direct labor hours. It is further estimated that small lamp production will have 375,000 direct labor hours and desk lamp production will require 265,000 direct labor hours

(a)

Determine the single plant factory overhead rate based on direct labor hours.

(b)

How much is the factory overhead cost per unit if each small lamp uses 3 hours per unit?

(c)

How much is the factory overhead cost per unit if each desk lamp uses 2.5 hours per unit?

(d)

How much total factory overhead will be allocated to the small lamp production if 130,000 units are produced during the period?

(e)

How much total factory overhead will be allocated to the desk lamp production if 104,000 are produced during the period?

Reference no: EM13572526

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