Making The Connection Integrative Exercises -
Required -
1. Calculate the plantwide overhead rate for the fabric plant.
2. Calculate the amount of under- or overapplied overhead for the fabric plant.
3. Using the weighted average method, calculate the cost per bolt for Fabric FB70.
4. Assume that the weaving and pattern process is not a separate process for each fabric. Also, assume that the yarn used for each fabric differs significantly in cost. In this case, would process costing be appropriate for the weaving and pattern process? What costing approach would you recommend? Describe your approach in detail.
5. Assume that the standard hours allowed for the actual total output of the fabric plant are 115,000. Calculate the following variances:
a. Fixed overhead spending variance
b. Fixed overhead volume variance
c. Variable overhead spending variance
d. Variable overhead efficiency variance
6. Suppose that the fabric plant has 500 bolts of FB70 in beginning finished goods inventory. The current-year plan is to have 1,000 bolts of FB70 in finished goods inventory at the end of the year. This fabric has an external market price of $400 per bolt. If the fabric plant is set up as a profit center, it could sell 3,000 bolts per year to outside customers and supply 2,000 bolts per year internally to Beauville's furniture plant. If the fabric plant were designated as a profit center, the plant would transfer all goods internally at market price. Using the proposed standard cost sheet (as needed) and any other relevant data, prepare the following for Fabric FB70:
a. Sales budget
b. Production budget
c. Direct labor budget
d. Cost of goods sold budget
Attachment:- Assignment File.rar