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Exercise 21-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter of calendar year 2017 reveals the following. Pixed Budget $2,020,000 $240,000 430,000 270,000 40,000 980,000 1,040,000 Sales (10,000 units) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging Advertising Administrative expenses Administrative salaries Depreciation office equip. Insurance office rent Income from operations 80,000 140,000 100,000 320,000 90,000 60,000 30,000 40,000 220,000 $ 500,000 Complete the following flexible budgets for sales volumes of 8,000, 10,000, and 12,000 units. (Round cost per unit to 2 decimal places.) TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 ...Flexible Budget Flexible Budget at - Variable Total Fixed Amount per Cost 8,000 units 10,000 units 12,000 units Unit Variable costs: Complete the following flexible budgets for sales volumes of 8,000, 10,000, and 12,000 units. (Round cost per unit to 2 decimal places.) TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 Flexible Budget- -----Flexible Budget at Variable Total Fixed Amount per 8,000 units 10,000 units 12,000 units Cost Unit Variable costs: 0.00 0 0 Fixed costs: 0 0 0 0 Required Information Use the following information for the Exercises below. (The following information applies to the questions displayed below.) A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard (6 lbs. @ $8 per lb.) (3 hrs. @ $16 per hr.) (3 hrs. @ $12 per hr.) Actual 48,400 lbs. @ $8.20 per lb. 23,700 hrs. @ $16.60 per hr. $293,200 8,000 Exercise 21-8 Standard unit cost; total cost variance LO C2 (1) Compute the standard cost per unit. Direct materials Direct labor Overhead Total (2) Compute the total cost variance for June. Indicate whether the cost variance is favorable or unfavorable. Total cost variance Required Information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard (6 lbs. @ $8 per lb.) (3 hrs. @ $16 per hr.) (3 hrs. @ $12 per hr.) Actual 48,400 lbs. @ $8.20 per lb. 23,700 hrs. $16.60 per hr. $293, 200 8,000 Exercise 21-9 Direct materials variances LO P2 Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is favorable or unfavorable. AQ - Actual Quantity SQ - Standard Quantity AP = Actual Price SP = Standard Price Actual Cost Standard Cost $ 0 S 0 Required Information Use the following information for the Exercises below. (The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard (6 lbs. @ $8 per lb.) (3 hrs. @ $16 per hr.) (3 hrs. @ $12 per hr.) Actual 48,400 lbs. @ $8.20 per lb. 23,700 hrs. @ $16.60 per hr. $293,200 8,000 Exercise 21-10 Direct labor variances LO P2 Compute the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable. AH - Actual Hours SH - Standard Hours AR - Actual Rate SR - Standard Rate Actual Cost Standard Cost $ 0 $ 0 $ 0
