# (Question and Answer): Brodrick Company expects to produce ixtobi units tor Ihe year enaing beeember 31. A flexible u for 20,000 units of production reflects sales of \$4

QS 21-5 BatCo makes metal baseball bats..

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(Question and Answer): Brodrick Company expects to produce ixtobi units tor Ihe year enaing beeember 31. A flexible u for 20,000 units of production reflects sales of \$4
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Brodrick Company expects to produce ixtobi units tor Ihe year enaing beeember 31. A flexible u for 20,000 units of production reflects sales of \$400.000; variable costs of \$80,000; and fixed \$150,000. If the company instead expects to produce and sell 26.,000 units for the year, calculate he es pected level of income from operations udgot Refer to information in Qs 21-3. Assume that actual sales for the year are \$480,000, actual variable os for the year are SI 12 000 and actual fixed costs for the year are si 45,000, prepare a flexible budget udget ce report P1 formance report for the year BatCo makes metal baseball bats, Each hat requires 1 kg of aluminum at S18 per kg and 025 direct hr appear on a standard cost card for BatCo? Refer to information in QS 21-5. Assume the actual cost to manufacture one metal bat was S40 Comple ost card C1 hours at \$20 per hour. Overhesd is assigned at the rate of \$40 per direct labor hour. What umovets wod ces C2the cost variance and classify it as favorable or unfavorable Managers use managemenr by exception for control purposes 1. Describe the concept of management by exception. 2. Explaim how standard costs help managers apply this concepe to monitor and costrol t by casis Tercer reports the following on one of its products Compute the direct materials price and quaniy vrinces iances Direct materials standard (4 lbs.\$2/b).. Actual Girect materials used \$3 per fieished unit 300,000 lbs

A standard cost card for one bat would include:

 Direct materials (1 kg. @\$18 per kg.) \$18 Direct labor (0.25 hours @\$20 per hour) \$5 Overhead (0.25 labor hours \$40 per hour) \$10 Total \$33

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