# Please provide step by step solutions

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Please provide step by step solutions PRACTICE PROBLEMs KEY.docx Practice Problems Chapter 11 9. Interspace Merchandising anticipated selling 29,000 units of a major product and paying sales commissions of \$6 per unit. Actual sales and sales commissions totaled 31,500 units and \$182,700, respectively. If the company used a static budget for performance evaluations, Interstate would report a cost variance of: A. \$6,30 0U. B. \$6,300F. C. \$8,700U. D. \$8,700F. E. None of the other answers are correct. Direct Material Quantity Variance=SP(AQ-SQ) \$6 (31,500-29,000) =\$15,000U Direct Material Price Variance= AQ (AP-SP) 31500(*5.8-6)= \$-6,300F ** AP 5.8 = \$182,700/31500 Units Therefore, Cost Variance=\$15,000U-\$6,300F=\$8,700U 10. Gridiron Merchandising anticipated selling 27,000 units of a major product and paying sales commissions of \$6 per unit. Actual sales and sales commissions totaled 27,500 units and \$171,400, respectively. If the company used a flexible budget for performance evaluations, Gridiron would report a cost variance of: 11. Bunnie’s Bakery anticipated making 17,000 fancy cakes during a recent period, requiring 14,000 hours of process time. Each hour of process time was expected to cost the firm \$11. Actual activity for the period was higher than anticipated: 18,000 cakes and 15,200 hours. If each hour of process time actually cost Bunnie \$12, what processtime variance would be disclosed on a performance report that incorporated static budgets and flexible budgets? 11-1 12. Trois Elles Corporation recently prepared a manufacturing cost budget for an output of 50,000 units, as follows: Actual units produced amounted to 60,000. Actual costs incurred were: direct materials, \$110,000; direct labor, \$60,000; variable overhead, \$100,000; and fixed overhead, \$97,000. If Trois Elles evaluated performance by the use of a flexible budget, a performance report would reveal a total variance of: 13. Zin, Inc. is planning its cash needs for an upcoming period when 85,000 machine hours are expected to be worked. Activity may drop as low as 78,000 hours if some overdue equipment maintenance procedures are performed; on the other hand, activity could jump to 94,000 hours if one of Zin’s major competitors likely goes bankrupt. A flexible cash budget to determine cash needs would best be based on: 14. Young Corporation has a high probability of operating at 40,000 activity hours during the upcoming period, and lower probabilities of operating at 30,000 hours and 50,000 hours. The company’s flexible budget revealed the following: Young’s flexible-budget formula, where Y is defined as total cost and AH represents activity hours, is: 11-2 15. Young Corporation has a high probability of operating at 40,000 activity hours during the upcoming period, and lower probabilities of operating at 30,000 hours and 50,000 hours. The company’s flexible budget revealed the following: If Young operated at 35,000 hours, its total budgeted cost would be: 17. Gourmet Restaurants has the following flexible-budget formula: Y = \$13PH + \$450,000 where PH is defined as process hours. What is Gourmet’s budgeted total cost if its process hours equal 25,000? 18. Delicious Treats (DT) anticipated that 84,000 process hours would be worked during an upcoming accounting period when, in fact, 92,000 hours were actually worked. One of the company’s cost functions is expressed as follows: Y = \$16PH + \$640,000 where PH is defined as process hours What budgeted dollar amount would appear in DT’s static budget and flexible budget for the preceding cost function? 19. Del’s Diner anticipated that 84,000 process hours would be worked during an upcoming accounting period when, in fact, 90,000 hours were actually worked. One of the company’s cost functions is expressed as follows: Y = \$16PH + \$640,000 where PH is defined as process hours 11-3 What is Del’s flexible budget (Y) for the preceding cost function? 21. A flexible budget for 15,000 hou