3a. Compute the cost and efficiency variances for direct materials and direct labor. F/U DM Cost Variance: 10,350 U DM Efficient Variance: F/U c DL Cost Variance: 824 U DL. Efficiency Variance: 3b. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. F/U F/U (824) F VOH Cost Variance: VOH Efficient Variance: FOH Cost Variance: (1,800) F VOH Volume Variance: 3c. Prepare the standard cost income statement for 2019. ixed Sudsy Days Standard Cost Income Statement For the Year Ended December 31, 2019 Net Sales Revenue @ Standard COGS Standard Manufacturing Cost Variances: DM Cost Variance DM Efficiency Variance DL Cost Variance DL Efficiency Variance VOH Cost Variance VOH Efficiency Variance FOH Cost Variance FOH Volume Variance Total Manufacturing Cost Variances COGS @ Actual cost Gross Profit S&A Expenses: Variable Elved Student Calculations Area 3c. Prepare the standard cost income statement for 2019. Sudsy Days Standard Cost Income Statement For the Year Ended December 31, 2019 Net Sales Revenue @ Standard COGS @ Standard Manufacturing Cost Variances: DM Cost Variance DM Efficiency Variance DL Cost Variance DL Efficiency Variance VOH Cost Variance VOH Efficiency Variance FOH Cost Variance FOH Volume Variance Total Manufacturing Cost Variances COGS @ Actual cost. Gross Profit S&A Expenses: Variable Fixed Operating Income 3a. Comp DM DLC 3b. Forma overhead 2 3 During 2019, Sudsy Soap recorded the following cost data: 4 5 Standard Cost Information 6 Quantity Cost 7 Direct Materials 3 lbs per jug $2 per lb 8 Direct Labor 0.30 hours per jug $12 per hour 9 Variable MOH 0.30 hours per jug $12 per hour 10 Fixed MOH Static Budget Amount: $ 38,340 0.30 hours per jug $ 21.00 per hour 11 12 Actual Cost Information 13 Direct Materials 20,700 lbs $ 2.50 per lb 14 Direct Labor 2,060 hours $ 12.40 per hour 15 Variable MOH 2,060 hours $ 11.60 per hour 16 Fixed MOH $ 36,540 17 18 3a. Compute the cost and efficiency variances for direct materials and direct labor. 19 20 3b. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed 21 overhead cost and volume variances. 22 23 3c. Prepare the standard cost income statement for 2019, 24 VOH FOH 3c. Prepare Nets h. 5 2 3 Sudsy Days sold 7000 Soap jugs in 2019, and its actual operating income was as follows: 4 5 Sudsy Days 6 Balance Sheet 7 December 31, 2019 8 9 Net Sales Revenue $ 630,000 10 Cost of Goods Sold: 11 Variable $ 94,890 12 Fixed 36,540 131,430 13 Gross Profit 498,570 14 Selling & Admin Expenses: 15 Variable 12,600 16 Fixed 61,400 74,000 17 Operating Income 424,570 18 Other income and (Expenses): 19 Interest Expense (425) 20 Income Before Income Taxes 424,145 21 Income Tax Expense 22,000 22 Net Income $ 402,145 23 24 25 2a. Prepare a flexible budget performance report through operating income for 2019. Show product costs 26 separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory 27 having a different cost than those produced and sold in 2019, assume the following product costs: 28 29 30 Variable Fixed Total 31 Static Budget 84,240 38,340 122,580 32 Flexible Budget 93,940 38,340 132,280 2b. W 22 24 25 26 Sudsy Days Balance Sheet December 31, 2018 27 28 Assets Current Assets: Cash $ 29 30 31 32 33 34 35 A/R 58,000 22,000 1,200 5,400 $ 86,600 36 Raw Materials Inventory Finished Goods Inventory Total Current Assets Plant Property & Equipment: Equipment Less: Accumulated Depreciation Total Assets 142,000 (47,000) 95,000 181,600 37 38 39 40 41 42 43 44 45 Liabilities Current Liabilities: Accounts Payable $ 8,000 46 Stockholders' Equity Common Stock, no par $ Retained Earnings Total stockholders' equity Total Liabilities and Stockholders' Equity 120,000 53,600 47 48 49 173,600 181,600 $ 50