25 26 Amboy Specialty Foods Comparative Operating Income Statement 27 28 29 Cases Sold 108,000 124,200 16,200 30 Difference 31 32 Sales 33 Per Case 34 35 Variable Cost of Goods Sold Last Quarter Current Quarter $ 2,808,000 $ 3,260,250 $ 26.00 $ 26.25 324000 417,312 36 Per Case $ 3.00 $ 3.36 37 38 Contribution Margin Per Case 39 40 41 Selling & General Administration 42 43 Operating Income 44 112 113 Variable Manufacturing Overhead Spending Variance 114 115 116 117 118 119 Variable Me Spending Variance $ 120 121 122 Selling & General Adminstration Variance Current Quarter Last Quarter 125 Selling & General Administration 126 127 123 124 Total Variance LA 3 Amboy Specialty Foods Income Reconciliation 9 0 $ -1 Operating Income Last Quarter #2 $ 33 Sales Volume Variance 34 Sales Price Variance 421,200 31,050 35 36 Total Sales Variances $ 452,250 37 38 Manufacturing Variances 39 Direct Material Price (Block Cheese) 40 Direct Material Usage (Block Cheese) 244,053 512,730 41 42 Direct Labor Rate 143 Direct Labor Efficiency 335,340 615,600 144 745 Variable Mfg Overhead Spending 146 147 Total Manufacturing Variances 1.707,723 148 149 SG&A Variance 150 151 Total Variances $ 2,159.973 152 153 Operating Income Current Quarter $ 154 155 Case Questions 1. Create an operating income statement? 2. What is the impact of the increased sales volume and sales price changes on Amboy's operating income comparing the last quarter to the current quarter? 3. What is the impact of direct material price and usage (efficiency) variances comparing the last quarter to the current quarter ? 4. What is the impact of direct labor material rate and efficiency variances comparing the last quarter to the current quarter? 5. Calculate the variable manufacturing overhead spending variance and selling and general administration variances quarter over quarter. 6. Create an operating income reconciliation schedule detailing the differences between Amboy's operating income from the last quarter to the current quarter? Amboy Specialty Foods Last Quarter Current Quarter 124.200 Cases Sold Selling Price per Case 108,000 26.00 $ $ 26.25 Cost Inputs Pounds of Cheese Per Case $ Pounds of Block Cheese Purchased & Used Cost per Pound Block Cheese Direct Labor Hours Pet Case Direct Labor Rate Per Case Variable Manufacturing Per Case Selling and General Administration 595 642,600 3.00 5 0.10 15.00 $ 3.00 $ 150.000 $ 6.55 813.510 3.30 0.12 15.30 $ s $ 3.36 165.000