# Accounting Chapter 17 The Data Below Relate Product Omaha

Document Type
Test Prep
Book Title
Fundamentals of Cost Accounting 5th Edition
Authors
Michael Maher, Shannon Anderson, William Lanen
109.
17-102
110.
Malloy Corporation has provided the following data concerning its most important raw
material, compound I51D:
Standard cost, per liter
\$30.50
Standard quantity, liters per unit of
output
4.6
Cost of material purchased in October,
per liter
\$30.70
Material purchased in October, liters
4,000
Material used in production in October,
liters
3,580
Actual output in October, units
800
17-104
111.
The data below relate to a product of Omaha Company.
\$21
per
unit
\$72
per
unit
2,000
units
1,800
units
\$48,230
\$140,170
5,750
pounds
17-106
112.
Compound Y23Z is used by Carrington Corporation to make one of its products. The
standard cost of compound Y23Z is \$38.70 per ounce and the standard quantity is 4.6 per
unit of output. Data concerning the compound in the most recent month appear below:
Cost of material purchased in November,
per ounce
\$39.20
Material purchased in November, ounces
2,800
Material used in production in November,
ounces
2,360
Actual output in November, units
500
17-108
113.
The following standards have been established for a raw material used to make product
P62:
Standard quantity of the
material per unit of output
6.3
pounds
Standard price of the material
\$15.50
per
pound
The following data pertain to a recent month's operations:
Actual material
purchased
6,700
pounds
Actual cost of material
purchased
\$100,500
Actual material used in
production
6,400
pounds
Actual output
920
units of
product P62
17-109
114.
115.
The Oregon Company produces and sells a single product. Standards have been
established for the product as follows:
Direct materials: 5 pounds @ \$3.50 per pound = \$17.50
Direct labor: 3 hours @ \$5.50 per hour = \$16.50
Actual cost and usage figures for the past month follow:
17-110
Units produced
750
Direct materials used
4,000
pounds
Direct materials purchased
(4,500 pounds)
\$14,400
Direct labor cost (2,000 hours)
\$11,200
17-111
116.
The data below relate to a product of Bullfrog Company.
\$12
per
unit
\$45
per
unit
17-112
4,000
units
3,600
units
\$46,400
\$160,580
7,300
pounds
117.
The next year's budget for Howard, Inc., a multi-product company, is given below:
Product A
Product B
Sales
\$1,890,000
\$1,377,000
Variable costs
919,800
594,000
Fixed costs
500,000
500,000
17-113
Net income
\$470,200
283,000
Units
252,000
108,000
Market share
12.5%
20.0%
At the end of the year, the total fixed costs and the variable costs per unit were exactly as
budgeted, but the following units per product line were sold. Howard analyzes the effects
its sales variances have on the profitability of the company.
Product Line
Units
Sales
Mkt share
A
252,230
\$1,848,579
15.0%
B
113,770
\$1,479,010
17.0%
17-114
118.
The Buffett Company had the following expectations:
Total market for the product
175,000
units
Buffett’s budgeted sales
54,250
Contribution margin per unit
\$13.00
Actual results for the year were:
Total market for the product
166,250
units
Buffett’s actual sales
56,525
17-115
119.
The next year's budget for Alton, Inc., is given below:
Product 1
Product 2
Sales
\$945,000
\$688,500
Variable costs
459,900
297,000
Fixed costs
300,000
300,000
Net income
\$185,100
\$91,500
Units
126,000
54,000
Market share
12%
20.0%
At the end of the year, the total fixed costs and the variable costs per unit were exactly as
budgeted, but the following units per product line were sold:
Product Line
Units
Sales
Mkt share
1
126,200
\$958,579
16.0%
2
56,800
\$721,010
14.2%
17-117
120.
The Stangle Company had the following expectations:
Total market for the product
350,000
units
Stangle’s budgeted sales
108,500
Contribution margin per unit
\$12.00
Actual results for the year were:
Total market for the product
332,500
units
Stangle’s actual sales
113,050
121.
Porcini Enterprises produces two products, AR and QT. Actual and budgeted information
for the year ending April 30 is provided below:
Product AR
Product QT
Budget
Actual
Budget
Actual
Unit sales
2,000
2,800
6,000
5,600
Sales
\$6,000
\$7,560
\$12,000
\$11,760
Fixed costs
1,800
1,900
2,400
2,800
Variable costs
2,400
2,800
6,000
5,880
17-119
122.
The next year's budget for Canfield, Inc., a multi-product company, is given below:
Product 1
Product 2
Sales
\$1,890,000
\$1,377,000
Variable costs
919,800
594,000
Fixed costs
500,000
500,000
Net income
\$470,200
\$283,000
Units
252,000
108,000
At the end of the year, the total fixed costs and the variable costs per unit were exactly as
budgeted, but the following units per product line were sold. Canfield analyzes the effects
its sales variances have on the profitability of the company.
Product Line
Units
Sales
A
252,230
\$1,848,579
B
113,770
\$1,479,010

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