ACC 1003, ACC III Jim’s Landscaping is in a business of maintaining and improving yards - 19261

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1.Jim’s Landscaping is in a business of maintaining and improving yards in the surrounding areas. The company bases its overhead cost budgets on the following data: Variable overhead costs: Supplies $4 per yard Machine maintenance $2 per yard Chemicals $6 per yard Fixed Overhead: Salaries and wages $2,300 per month Depreciation $800 per month Utilities $400 per month Rent $1,100 per month In June the following actual costs were incurred for 83 yards: Supplies $320 Machine maintenance $180 Chemicals $500 Salaries and wages $2,500 Depreciation $800 Utilities $450 Rent $1,100 Construct a flexible budget performance report using the data provided: Show computations 

2.Banner Inc bases its variable overhead performance report on the actual direct labor hours of the period. Data concerning the most recent year that ended on December 31 are as follows: Budgeted direct labor hours 12,000 Actual direct labor hours 13,500 Standard direct labor hours allowed 13,000 Cost formula (per direct labor hours) Indirect labor $0.85 Supplies $0.30 Electricity $0.15 Actual costs incurred: Indirect labor $11,600 Supplies $4,000 Electricity $2,050 Management would like to compute both the spending and the efficiency variances for the variable overhead in the company’s variable overhead performance report. Prepare a variable overhead performance report with both the variable overhead spending and the efficiency variances. Show computations and details 

3. Photos Inc has a standard cost system in which it applies overhead to products based on the standard direct labor hours allowed for the actual output of the period. Data concerning the most recent year appears below: Total budgeted fixed overhead cost for the year $250,000 Actual fixed overhead cost for the year $265,000 Budgeted standard direct labor hours 40,000 Actual direct labor hours 41,000 Standard direct labor hours allowed for the actual output 40,800 a. Compute the fixed portion of the predetermined overhead rate for the year. Show computations b. Compute the fixed overhead budget and volume variances. Show computations 

4. Grater Inc sells product A and product B. Revenue and cost information relating to the products follow: Product A Product B Selling Price per unit $48.00 $65.00 Variable expenses per unit $24.50 $29.20 Traceable fixed expenses per year $144,000 $101,500 Common fixed expenses in the company total $390,000 annually. Last year the company produced and sold 10,000 of Product A and 15,000 of Product B. Prepare a contribution format income statement for the year segmented by product lines

5. Selected sales and operating data for three divisions of three different companies are given below: Division X Division Y Division Z Sales $900,000 $750,000 $600,000 Average operating assets $600,000 $150,000 $200,000 Net operating income $54,000 $30,000 $10,000 Minimum required rate of return 10% 16% 8% a. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. Show computation

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