Question 1-6 (Chapter 8) Question 11-14 (Chapter 10)

1. revenue (selling price*sales) 2.175.000 11. indirect labor 72.000 budgeted

COGS (cost*sales) 1.725.000 factory supervision 24.000 budgeted
profit 450.000 indirect labor/hour 0,45
investment 1.800.000 factory supervision/hour 0,15
ROI (profit/investment) 0,25 budgeted capacity 160.000 DLH
2. profit/unit 30 actual capacity 180.000 DLH
markup % 0,2609 indirect labor/hour 81.000 flexible
3. VC/unit 1,25 factory supervision/hour 27.000 flexible
FC/unit 2,25 total 108.000
total cost/unit (VC+FC) 3,50 12. budgeted rate note
COGS 700.000 capacity 16.000
ROI (profit/investment) 0,14 VC 48.000 3,0 (48.000/16.000)
investment 2.000.000 FC 270.000 16,875 (270.000/16.000)
units sold 200.000 units total 318.000
profit 280.000 budgeted actual difference
sales (profit+COGS) 980.000 capacity 18.000 18.000 -
target selling price/unit 4,90 VC 54.000
4. profit/unit 1,40 FC 270.000
markup % 0,40 total 324.000 321.000 3.000 F
5. units sold 150.000 units 13. budgeted activity 100.000 hours
desired ROI 0,14 VC total 360.000
desired ROI (in dollar) 280.000 FC total 120.000
desired ROI/unit 1,867 VC/hours 3,60
FC/unit 3,0 FC/hours 1,20
total cost/unit (VC+FC) 4,25 flexible activity 80.000 hours
target selling price/unit 6,12 total VC (flexible) 288.000
markup % 0,4392 total FC (flexible) 120.000
6. total cost/unit 125 total MO (flexible) 408.000
desired ROI/unit 30 14. sales 1.500.000
selling price/unit 155 CM 300.000
Question 7-10 (Chapter 9) controllable FC 180.000
7. expected unit sales 32.000 units controllable margin 120.000
finished goods (beginning) 3.600 units Question 15-18 (Chapter 11)
units to be produced 33.600 units 15. budgeted (applied) MO 12.500
finished goods (ending) 5.200 units actual (incurred) MO 15.550
8. expected unit sales 100.000 units MO costs variance: - 3.050 U
units to be produced 104.000 units standard hours (30.000/12) 2.500 per month
finished goods (beginning) 6.000 units actual hours 3.000 (June)
finished goods (ending) 10.000 units MO quantity variance (*5): 2.500 F
FG ending-beginning 4.000 units MO total variance: - 550 U
9. units to be produced 3.000 units 16. material A
pounds needed for production 9.000 units 1000*(2-2,1) - 100 U
DM/unit 3,0 pounds material B
10. total VC/units 2,45 2400*(3-2,8) 480 F
total FC 82.000 DM price variance: 380 F
total FC/units 10,25 17. SQ 1,5*2.000 3.000
units sold 8.000 units AQ 3.100
total VC 19.600 SP 6
AP 18.135/3.100 5,85
DM price variance:
(3.100*(6-5,85)) 465 F
18. SQ 36.000
AQ 37.500
AP 5
DM quantity variance:
(5*(37500-36000)) 7.500 U