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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.

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Solution Summary

The solution determines accounting for sole product and planned production.