Essay on RedBull Ethical Analysis

Submitted By rconrad2
Words: 1191
Pages: 5

1. Sawyer Family Inn is a bed and breakfast establishment and their guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below
Activity level: 57 guests
Variable overhead costs:
Supplies $152.40
Laundry 224.60
Fixed overhead cost:
Utilities 185.00
Salaries and wages 5,050.00
Depreciation 2,850.00
Total overhead cost 8,462.00

The Inn's variable overhead costs are driven by the number of guests.
What would be the total budgeted overhead cost for a month if the activity level is 57 guests?

2. Bolick Services' cost formula for its wages and salaries is $2,500 per month plus $195 per instance. For the month of May, the company planned for activity of 159 service calls, but the actual level of activity was 115 calls. The actual wages and salaries for the month was $21,980. The activity variance for wages and salaries in May would be closest to:

3. Enloe Medical Clinic measures its activity in terms of patient-visits. Last month, the budgeted level of activity was 2,610 patient-visits and the actual level of activity was 2,770 patient-visits. The cost formula for administrative expenses is $5.30 per patient-visit plus $19,900 per month. The actual administrative expense was $34,600. In the clinic's flexible budget performance report for last month, the spending variance for administrative expenses was:

4. Frannie’s Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 250,000 units. Total overhead was budgeted at $985,000 for the year, and the fixed manufacturing overhead rate was $2.10 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below:
Actual production 242,000 units
Actual DL hours 480,000 DL hrs
Actual variable MOH $396,000
Actual Fixed MOH $610,000

The standard hours allowed for actual production for the year total: Variable overhead efficiency variance for the year is:

Variable overhead rate variance for the year is:

Fixed manufacturing overhead budget variance for the year is:

The fixed manufacturing overhead applied to Franklin's production for the year is: Fixed manufacturing overhead volume variance for the year is:

5. Hammer Corporation's flexible budget performance report for last month shows that actual indirect materials cost, a variable cost, was $55,240 and that the spending variance for indirect materials cost was $4,280 unfavorable. During that month, the company worked 19,800 machine-hours. Budgeted activity for the month had been 19,000 machine-hours. The cost formula per machine-hour for indirect materials cost must have been closest to:

6. The Barker Company has a standard cost system. In January the company purchased and used 32,500 pounds of direct material at an actual cost of $73,000; the materials quantity variance was $4,625 Unfavorable; and the standard quantity of materials allowed for January production was 30,750 pounds. The materials price variance for January was:

7. The Reed&Sons Company uses a standard costing system. The following data are available for November:
Actual DL hrs worked 6,100 hrs
Standard DL rate $10 per hr
Labor rate variance $1,960 favorable

Know how to do journal entries for everything in chapter 10
Know everything else that is not included in this study guide. Sorry I couldn’t make up more examples.

8. Division Q of Your Corporation has the capacity for making 80,000 sets per year and regularly sells 60,000 each year on the outside market. The regular sales price is $110 per set, and the variable production cost per unit is $70. Division U of Your Corporation