Lone Star AccountIng Assingment Help With Solution

I. Breakeven Analysis

Lone Star Enterprises sells a single product. The selling price is $40 per unit, and the variable expense is $32 per unit.

The company’s most recent annual contribution format income statement is presented below:

Sales $ 200,000
Variable expenses 160,000
Contribution Margin 40,000
Fixed expenses 30,000
Net Operating Income $ 10,000

Required:

1. Calculate the contribution margin per unit $_______________.
2. Calculate the contribution margin ratio ________%.
3. Calculate the break-even point in sales dollars $____________.
4. Calculate the break-even point in units sold _______________.
5. Calculate the units that must be sold to obtain a net operating income of $20,000. Units to be sold ______________.

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Features

Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.

Relevancy
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.

Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.

100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services

II. Flexible Budget and Performance Report

A. Lone Star Enterprises uses the following cost formulas in its flexible budget for manufacturing overhead.

Item Cost Formula
Indirect labor
$21,000 per year, plus $.50 per machine hour
Indirect material
$10,000 per year, plus $.80 per machine hour
Factory utilities
$6,000 per year, plus $.30 per machine hour
Factory depreciation $25,000 per year

Using the above cost formulas, prepare a flexible budget according to the following format:

Overhead Costs Cost per Machine hour Machine Hours
Variable overhead costs: 8,000 10,000 12,000
_
Total variable costs $__________ ______ ______ ______
Fixed overhead costs:
$__________ ______ ______ ______

Total fixed costs $__________ ______ ______ ______

Total overhead costs ______ ______ ______

II. Flexible Budget and Performance Report

B. Refer to the flexible budget data in Part A. The standard time to complete one unit of product is 1.6 machine hours. Last year the company budgeted to operate at the 10,000 machine hour level of activity. During the current year Lone Star Enterprises incurred the following actual activity and costs:

Units Produced 5,000
Actual machine hours worked 8,500
Actual Overhead costs:
Variable Fixed
Indirect labor $ 3,300 $ 21,700
Indirect material 6,700 10,300
Food utilities 2,600 5,900
Factory depreciation 25,000

Required:
Prepare a performance report for the year using the format that follows.

Performance Report
Lone Star Enterprises

Budgeted machine hours __________
Actual machine hours __________
Standard machine hours __________

Variable overhead costs: Cost Formula (per MH) Actual costs 8,500 Budget Based on ____ MHs Spending or Budget Variance
_____________________ _______ ________ ________ _______
Total variable costs _______
Fixed overhead costs:

Total fixed costs ________ ________ ________
Total overhead costs ________ ________ ________

III. Direct Material and Direct Labor Variance Analysis

Littrell Company produces chairs and has determined the following direct cost categories and budgeted amounts:

Standard Inputs Standard Cost
Category for 1 output per input
Direct Materials 1.00 $7.50
Direct Labor 0.35 9.00

Actual performance for the company is shown below:

Actual output: (in units) 4,000
Direct Materials:
Materials costs $30,225
Input purchased and used 3,900
Actual price per input $7.75
Direct Labor:
Labor costs $11,470
Labor-hours of input 1,240
Actual price per hour $9.25

Required:
a. Calculate the price and usage variances for direct materials and the direct labor rate and efficiency variance of the direct labor?

b. From the following lists, select the most probable cause and responsible manager related to each variance listed above?
i) List of variance causes
• Quality of Material Purchased Lower
• Quality of Material Purchased Higher
• Market Price Per unit of Material Higher than Prior Year
• Market Price Per unit of Material Lower than Prior year
• More experienced Production Workers Scheduled
• Less experienced Production Workers Scheduled
ii) List of Responsible Managers
• Treasurer
• Controller
• Vice President of Finance
• Vice President of Marketing
• Labor Union Representative
• Purchasing Agent
• Production Manager

Product Code :Acc51

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.

Summary