Use the following data to calculate all direct material and direct labor variances. Then use your…

Use the following data to calculate all direct material and direct labor variances. Then use your variance answers to determine possible explanations for the variances and the appropriate person in the company with whom to discuss the variances.

Standard feet of material per unit

1.5

Standard cost per foot of material

$15

Standard labor hours per unit

3

Standard labor rate per hour

$9

Number of units actually produced

3,000

Actual total cost of material used

$70,380

Actual hours worked

8,860

Quantity variance

$3,450 U

Rate variance

$2,620 U

Enter your answers without dollar signs, but in number format (eg 54,000 or 330,500.) Enter your answers in Blackboard using the link directly below the link for this quiz #4 workbook.

Would the book values of Cisco Systems’ fixed assets normally approximate their fair market values?

Cisco Systems Inc. reported Property, Plant, and Equipment of $5,029 million and Accumulated Depreciation of $2,438 million at July 28, 2001.

a. What was the book value of the fixed assets at July 28, 2001?

b. Would the book values of Cisco Systems’ fixed assets normally approximate their fair market values?

Bakerâ??s Delight, Inc., (BDI) has been in the food-processing business for three years. For its fir

Baker’s Delight, Inc., (BDI) has been in the food-processing business for three years. For its first two years(Year 1 and Year 2), its only product was raisin cake. All cakes were manufactured and packaged in onepound boxes. BDI used a normal costing system (actual direct material cost, actual direct labor cost, andmanufacturing overhead assigned using a predetermined overhead rate) during its first two years.Manufacturing overhead was allocated to products using a units of production allocation base.In its third year (Year 3), BDI added a second product — layered carrot cake — that was packaged in onepound boxes as well. Layered carrot cake differed from raisin cake in several ways: The ingredients used in the layered carrot cake were more expensive than those of the raisincake. It took more direct labor time to make a one pound box of layered carrot cake. The manufacturing process for layered carrot cake was more complex. In Year 3, BDI continued to use its existing cost system where a unit of production of either type of cake wasweighted the same in allocating manufacturing overhead. Direct materials cost in Year 3 were $0.60 perpound of raisin cake and $0.90 per pound of layered carrot cake. Direct manufacturing labor cost in Year 3was $0.14 per pound of raisin cake and $0.20 per pound of layered carrot cake.During Year 3, BDI sales people reported greater than expected sales of layered carrot cake and less thanexpected sales of raisin cake. The budgeted and actual sales volume of Year 3 were as follows: Budgeted Volume Actual Volume Raisin cake 160,000 pounds 120,000 pounds Layered carrot cake 40,000 pounds 80,000 pounds The budgeted manufacturing overhead for Year 3 was $210,800.At the end of Year 3, Stanley Stobe, the controller of BDI, decided to investigate how the use of an activitybased costing system would affect the product cost numbers. After consultation with operating personnel,the single manufacturing overhead cost pool was subdivided into five activity areas. These activity areas,their drivers, there Year 3 budgeted costs, and the driver units used per pound for each type of cake wereas follows: Activity Driver Mixing Labor time Cooking Oven time Budgeted Year 3Activity Cos Driver Units perPound of RaisinCake Driver Units perPound of LayeredCarrot Cake $44,800 5 8 $61,600 2 3 Cooling Cool room time Creaming/icing Machine time Packaging Machine time $13,600 3 5 $30,000 0 3 $60,800 3 7 Required:1. Compute the Year 3 unit cost of raisin cake and layered carrot cake with the normal costingsystem that was employed during Years 1, 2, and 3.2. Compute the Year 3 budgeted cost per driver unit of (a) mixing; (b) cooking; (c) cooling; (d)creaming/icing; and (e) packaging.3. Compute the Year 3 product cost per cake under the activity based costing system proposedby Stanley Stobe. 4. Explain the differences in unit costs computed in requirements 1 and 3 above.5. Describe three uses BDI might make of the activity-based cost numbers.

How would the elements of the accounting equation be affected by the sale?

Fathom Consulting Services acquired land three years ago for $25,000. On September 30, Fathom signed an agreement to sell the land for $80,000. In accordance with the sales agreement, the buyer transferred $80,000 to Fathom’s bank account on October 6. Fathom uses the cash basis of accounting.

(a) When would Fathom record the sale of the land?

(b) How would the elements of the accounting equation be affected by the sale?

What adjusting entry is necessary at December 31, the end of the accounting year? Show how the… 1 answer below »

One-year insurance policy was purchased on August 1 for USD 2,400, and the

following entry was made at that time:

Prepaid Insurance

2,400  

Cash  

2,400

What adjusting entry is necessary at December 31, the end of the accounting year? Show how the T-accounts for Prepaid Insurance and Insurance Expense would appear after the entries are posted.

Multiple Choice Questions1. The City of Nomanchester has a defined benefit pension plan for a number

Multiple Choice Questions1. The City of Nomanchester has a defined benefit pension plan for a number of its employees. A pension trust fund has been set up that currently has a net position of $32.7 million because quite a number of investments are being held. An actuary estimates that employees will eventually receive $99.7 million as a result of this pension. However, only $72.4 million of that amount is for past work that has been provided. The present value of the $72.4 million in payments is $49.8 million. On its government-wide financial statements, what amount of net pension liability should be reported? a. Zero.b. $17.1 million.c. $39.7 million.d. $67.0 million.2. The City of Huble has a defined benefit pension plan for a number of its employees. Which of the following is not included immediately in the termination of pension expense that this government should recognize in its government-wide financial statements? a. Service cost. b. Interest on total pension liability. c. Changes in pension liability as a result of a change in benefit terms. d. Changes in pension liability as a result of a change in economic or demographic assumptions.3. The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of the municipal building. Which of the following is true for reporting the gift within the government-wide financial statements? a. A capital asset of $240,000 must be reported. b. No capital asset will be reported. c. If conditions are met, recording the sculpture as a capital asset is optional. d. The sculpture will be recorded but only for the amount paid by the city. 4. In problem (12), which of the following statements is true about reporting a revenue in connection with this gift? a. A revenue will be reported. b. Revenue is reported but only if the asset is reported. c. If the asset is not capitalized, no revenue should be recognized. d. As a gift, no revenue would ever be reported. 5. Assume in problem (12) that the city reports the work as a capital asset. Which of the following is true? a. Depreciation is not recorded because the city has no cost. b. Depreciation is not required if the asset is viewed as being inexhaustible. c. Depreciation must be recognized because the asset is capitalized. d. Because the property was received as a gift, recognition of depreciation is optional. 6. A city builds sidewalks throughout its various neighborhoods at a cost of $2.1 million. Which of the following is not true? a. Because the sidewalks qualify as infrastructure, the asset is viewed in the same way as land so that no depreciation is recorded. b. Depreciation is required unless the modified approach is utilized. c. The modified approach recognizes maintenance expense in lieu of depreciation expense for qualifying infrastructure assets. d. The modified approach is allowed only if the city maintains the network of sidewalks at least at a predetermined condition. 7. Which of the following is true about use of the modified approach? a. It can be applied to all capital assets of a state or local government. b. It is used to adjust depreciation expense either up or down based on conditions for the period.c. It is required for infrastructure assets. d. For qualified assets, it eliminates the recording of depreciation. 8. Which of the following is true about the management’s discussion and analysis (MD&A)? a. It is an optional addition to the comprehensive annual financial report, but the GASB encourages its inclusion. b. It adds a verbal explanation for the numbers and trends presented in the financial statements. c. It appears at the very end of a government’s comprehensive annual financial report. d. It replaces a portion of the fund financial statements traditionally presented by a state or local government. 9. Which of the following is not necessary for a special purpose local government to be viewed as a primary government for reporting purposes? a. It must have a separately elected governing body. b. It must have specifically defined geographic boundaries. c. It must be fiscally independent. d. It must have corporate powers to prove that it is legally independent. View Solution:
Multiple Choice Questions 1 The City of Nomanchester has a

Explain how the claims of fully secured and partially secured creditors affect the dividend that may

Explain how the claims of fully secured and partially secured creditors affect the dividend that may be received by unsecured creditors. View Solution:
Explain how the claims of fully secured and partially secured

Thomas Richey and Donald Vick are partners who share profits and losses in the ratio of 40:60,…

Thomas Richey and Donald Vick are partners who share profits and losses in the ratio of 40:60, respectively. On December 31, 2016, they decide that Vick will sell one-half of his interest to James Walker. At that time, the balances of the capital accounts are $260,000 for Richey and $360,000 for Vick. The partners agree that before the new partner is admitted, certain assets should be revalued. These assets include merchandise inventory carried at $206,600 revalued at $203,800, and a building with a book value of $140,000 revalued at $240,000. 1. Record the revaluations in the general journal. 2. What will the capital balances of the two existing partners be after the revaluation is made? View Solution:
Thomas Richey and Donald Vick are partners who share profits

Lowstep Corporation filed for relief under Chapter 11 of the bankruptcy act on January 2, 2011. A…

Lowstep Corporation filed for relief under Chapter 11 of the bankruptcy act on January 2, 2011. A summary of Lowstep’s assets and equities on this date, and at June 30, 2011, follows. Estimated fair values of Lowstep’s assets at June 30 are also shown.
Lowstep Corporation filed for relief under Chapter 11 of the

On July 1, 2014, Jo’s Flower Shop borrowed $25,000 from the bank. Jo signed a ten-month, 8%… 1 answer below »

On July 1, 2014, Jo's Flower Shop borrowed $25,000 from the bank. Jo signed a ten-month, 8% promissory note for the entire amount. Jo's uses a calendar year-end.