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Hunt, Inc. Accounting for Sole Product and Planned Production

Hunt, Inc., uses a standard cost system when accounting for its sole product. Planned production is 60,000 process hours per month, which gives rise to the following per-unit standards:
Variable overhead: 13 hours at $15 per hour
Fixed overhead: 13 hours at $7 per hour
During September, 5,100 units were produced and the company incurred the following overhead costs: variable, $942,500; fixed, $429,000. Actual process hours totaled 65,000.
(A.) Calculate the spending and efficiency variances for variable overhead.
(B.) Calculate the budget and volume variances for fixed overhead.

Fog City Retail operates a retail store in Phoenix, Las Vegas, and Portland. The following information relates to the Phoenix facility:

Fog City's corporate headquarters is located in Portland, and the company uses responsibility accounting to evaluate performance.
Prepare a segmented income statement for the Phoenix store, being sure to disclose the segment contribution margin, the segment profit margin, and net income.


Solution Summary

The solution determines accounting for sole product and planned production.