1.

As the new accountant for Cohen & Company, you have been asked to provide a succinct analysis of financial performance for the year just ended. You obtain the following information that pertains to the company's sole product: Actual Master Budget Units sold 45, 000 50, 000 Sales $ 406, 000 5458,000 Variable costs 236, 000 278 , 000 Fixed costs 151, 000 143, 000 Required: 1. What was the actual operating income for the period? 2. What was the company's master budget operating income for the period? 3. (a) What was the total master budget variance, in terms of operating income, for the period? (b) Is this variance favorable or unfavorable? (If a variance has no amount, select "None" in the corresponding dropdown cell.) 4. The total master budget variance for a period can be decomposed into a total flexible budget variance and a sales volume variance. (a) What was the total flexible-budget variance for the period? (b) Was this variance favorable or unfavorable? (c) What was the sales volume variance for the period? (d) Was this variance favorable or unfavorable? (If a variance has no amount, select "None" in the corresponding dropdown cell.) 1 . Actual operating income 2 . Master budget operating income 3. Total master budget variance 4. Total flexible-budget variance Sales volume varianceChapter Assume that in October 2022 the Schmidt Machinery Company (Exhibit 14.1) manufactured and sold 950 units for $854 each. During this month, the company incurred $380,000 total variable costs and $181,900 total fixed costs. The master budget data for the month are as given in Exhibit 14.1. Required: 1. Prepare a flexible budget for the production and sale of 950 units. 2. Compute for October 2022: a. The sales volume variance, in terms of operating income. Indicate whether this variance was favorable or unfavorable. b. The sales volume variance, in terms of contribution margin. Indicate whether this variance was favorable or unfavorable. 3. Compute for October 2022: a. The total flexible budget variance. Indicate whether this variance was favorable or unfavorable. b. The total variable cost flexible budget variance. Indicate whether this variance was favorable or unfavorable. c. The total fixed cost flexible budget variance. Indicate whether this variance was favorable or unfavorable. d. The selling price variance. Indicate whether this variance was favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget for the production and sale of 950 units. Units sold Sales Required 1 Required 2 >Comparison of Actual and Budgeted Operating Income SCHMIDT MACHINERY COMPANY Analysis of Operating Income For October 2022 (1) (2) (3) Actual Operating Income Master Budget Variances Units 780 1,000 220 U* Sales $ 639,600 100% $ 800,000 100% $ 160,400 U Variable costs 350,950 55 450,000 56 99,050 F Contribution margin $ 288,650 45% $ 350,000 44% $ 61,350 U Fixed costs 160,650 * * * 25 150,000T 19 10,650 U Operating income $ 128,000 20% $ 200,000 25% $ 72,000 U *U denotes an unfavorable effect on operating income. **F denotes a favorable effect on operating income. ***Actual fixed factory overhead cost = $130,650; actual fixed selling and administrative costs = $30,000. +Budgeted fixed factory overhead cost = $120,000; budgeted fixed selling and administrative costs - $30,000.Information regarding Maxwell's direct labor cost for the month of January follows: Direct labor hourly rate paid $ 29.00 Total standard direct labor hours for units produced this period 11, 500 Direct labor hours actually worked 11, 300 Direct labor rate variance $ 16, 500 favorable Required: 1. Compute the standard direct labor wage rate per hour in January. (Round your answer to 2 decimal places.) 2. Compute the direct labor efficiency variance for January. Was this variance favorable or unfavorable? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 1 . Standard direct labor rate per hour 2 . Direct labor efficiency varianceAt a recent seminar you attended, the invited speaker was discussing some of the advantages and disadvantages of standard costs in terms of evaluating performance and motivating goal-congruent behavior on the part of employees. One criticism of standard costs in particular caught your attention: The use of conventional standard costs may not provide appropriate incentives for improvements needed to compete effectively with world-class organizations. The speaker then discussed so-called continuous-improvement standard costs. Such standards embody systematically lower costs over time. For example, on a monthly basis, it might be appropriate to budget a 1.0% reduction in per-unit direct labor cost. Assume that the standard wage rate into the foreseeable future is $23 per hour. Assume, too, that the budgeted labor-hour standard for October of the current year is 2.80 hours and that this standard is reduced each month by 2%. During December of the current year the company produced 7,000 units of XL-10, using 21,500 direct labor hours. The actual wage rate per hour in December was $25.00. Required: 1. Prepare a table that contains the standard labor-hour requirement per unit and standard direct labor cost per unit for the 4 months, October through January. 2. Compute the direct labor efficiency variance for December. Was this variance favorable or unfavorable? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a table that contains the standard labor-hour requirement per unit and standard direct labor cost per unit for the 4 months, October through January. (Do not round intermediate calculations. Round your "Standard Direct Labor Cost/Unit" answers to 2 decimal places and "Standard Labor-Hour Requirement/Unit" answers to 5 decimal places.) Standard Month Standard Labor-Hour Requirement/Unit Direct Labor Cost/Unit October hour per unit November hour per unit December hour per unit January hour per unit Saved Steinberg Company had the following direct materials costs for the manufacturing of product T in March: Actual purchase price per pound of direct materials $ 9.20 Standard direct materials allowed for units of product T produced 4, 100 pounds Decrease in direct materials inventory 300 pounds Direct materials used in production 4, 300 pounds Standard price per pound of material $ 8.75 Required: 1. What was Steinberg's direct materials purchase-price variance and its direct materials usage variance for March? Indicate whether each variance was favorable (F) or unfavorable (U). 2. Prepare the appropriate journal entries for March. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What was Steinberg's direct materials purchase-price variance and its direct materials usage variance for March? Indicate whether each variance was favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Direct materials purchase-price variance Direct materials usage variance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entries for March. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round final answers to the nearest whole dollar am View transaction list Journal entry worksheet 2 Record the cost of purchases during the month. Note: Enter debits before credits. Transaction General Journal Debit Credit 01 Record entry Clear entry View general journal McRequired information [The following information applies to the questions displayed below.] Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month's rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month's rent of $1,000. Budgeted cost data per tenant application for 2022 follow: . Professional labor: 1.5 hours at $20.00 per hour . Credit checks: $65.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $4,500 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 270. Phoenix paid $8,400 for 390 hours of professional labor. Credit checks went up to $70 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $5,100. The average first monthly rentals for August 2022 were $1,100 per apartment unit for 90 units. Required: 1. (a) What is the master budget variance for August 2022? (b) What is the total flexible budget variance for the month? (c) What is the sales volume variance for the month? 2. Determine the professional labor rate and labor efficiency variances for August 2022. 1a. The master budget variance 1b. The total flexible budget variance 1 c. The sales volume variance 2. Direct labor rate variance Direct labor efficiency variance