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CH9-Q3-A4, CH11-Q6-F)

QUESTION 1:

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What was the master budget amount for fixed overhead?

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QUESTION 2:

REQUIRED:

The following information is available for Marigold Shirts: Standard Quantity Standard Cost Total Standard Cost Direct Materials 3 metres $10/metre $30 Direct Labour 2 hours $10/hour $20 Variable Overhead 2 machine hours $2/machine hour $4 Fixed Overhead 2 machine hours $1/machine hour $2 $56 The normal production level is 260 shirts. This production period Marigold produced 240 shirts. Concert Wear purchased 780 metres of fabric for $6,786. The variances for the production period are: Materials Price Variance ? Materials Quantity Variance $240 U Labour Rate Variance $456 U Labour Efficiency Variance $240 F VOH Spending Variance $86 F VOH Efficiency Variance $100F FOH Budget Variance $90 F FOH Volume Variance $40 U The Concord Oil Company buys crude coconut and palm nut oil. Refining this oil results in four products at the split-off point: soap grade, cooking grade, light moisturizer, and heavy moisturizer. Light moisturizer is fully processed at the split-off point. Soap grade, cooking grade, and heavy moisturizer can individually be refined into fine soap, cooking oil, and premium moisturizer. In the most recent month (June), the output at the split-off point was: 92,000 L Soap grade Cooking grade Light moisturizer 308,000 L 53,000 L Heavy moisturizer 47,000 L The joint costs of purchasing the crude coconut and palm nut oil and processing it were $99,000. There were no beginning or ending inventories. Sales of light moisturizer in June were $51,000. Total output of soap, cooking oil, and heavy moisturizer was further refined and then sold. Data relating to June are as follows: Separable Costs Sales $ 217,700 $ 316,200 Product Fine soap Superior cooking oil Premium moisturizer 83,500 107,700 83,900 111,700 Concord Oil Company had the option of selling the soap grade, cooking grade, and heavy moisturizer at the split-off point. This alternative would have yielded the following sales for the June production: Soap grade $ 49,000 Cooking grade 31,000 Heavy moisturizer 69,000 (24) Allocate the joint cost, using constant gross margin NRV. (Round gross profit margin ratio to 6 decimal places, eg. 0.216454 and all entries to whole amounts, eg. 5,897.) Allocation Product of $99,000 Fine Soap $ Superior Cooking Oil Light moisturizer Premium Moisturizer

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