Can someone help with these, please? Part A The Puyer Corporation makes and sell
ID: 2549554 • Letter: C
Question
Can someone help with these, please?
Part A
The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available:
All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the company has budgeted to sell 15,000 Debs in February, then the total budgeted fixed selling and administrative expenses for February is:
Multiple Choice
$120,000
$170,000
$150,000
$130,000
Part B
Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $39,590 per month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers. The actual cost for plane operating costs in August was $255,690.
The activity variance for plane operating costs in August would be closest to:
Multiple Choice
$7,959 F
$2,294 U
$7,959 U
$2,294 F
Part C
Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period:
The common fixed expenses have been allocated to the divisions on the basis of sales.
The Southern Division’s break-even sales is closest to:
Multiple Choice
$265,119
$386,408
$130,508
$192,661
Part D
Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $39,590 per month plus $2,649 per flight plus $4 per passenger. The company expected its activity in August to be 82 flights and 294 passengers, but the actual activity was 85 flights and 297 passengers. The actual cost for plane operating costs in August was $255,690.
The spending variance for plane operating costs in August would be closest to:
Multiple Choice
$2,294 F
$10,253 U
$2,294 U
$10,253 F
Part E
Foster Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs and its activity-based costing system:
Distribution of resource consumption:
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.
The amount of activity for the year is as follows:
What would be the total overhead cost per delivery according to the activity-based costing system? In other words, what would be the overall activity rate for the deliveries activity cost pool? (Round to the nearest whole cent.)
Multiple Choice
$26.50
$30.00
$24.00
$27.00
MonthlyFixed Cost Variable Cost
Per Deb Sold Sales commissions $ 0.90 Shipping $ 1.40 Advertising $ 50,000 $ 0.20 Executive salaries $ 60,000 Depreciation on office equipment $ 20,000 Other $ 40,000
Explanation / Answer
A) fixed selling expenses = 50000+60000+20000+40000 = 170000
B) standard palne operating cost =39590+(2649*82) + (4*294) =257984
Actual operating cost = 255690
activity variance =257984-255690 = 2294(F)
C) contribution margin = (Sales - variable cost) / sales*100
= (193000-79130)/193000*100
=113870/193000*100
= 59%
BEP = FC/contribution margin
= (77000+36670)/59%
=192661