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A company has prepared a master budget for the month of February when they expected to sell 4,000 units. They actually sold 3,750 units. Calculate
- A company has prepared a master budget for the month of February when they expected to sell 4,000 units. They actually sold 3,750 units. Calculate the flexible budget and the spending and volume variances for February. Identify if the variances are favorable or unfavorable.
| Actual Costs 3,750 Units |
Spending Variances |
Flexible Budget _______Units |
Volume Variances | Master Budget 4,000 Units |
Manufacturing Costs: |
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Direct Materials | $14,500 |
|
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| $16,000 |
Direct Labor | 38,500 |
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| 40,000 |
Variable Manufacturing Overhead | 12,000 |
|
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| 14,000 |
Fixed Manufacturing Overhead | 20,000 |
|
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| 21,000 |
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|
|
|
Total Manufacturing Cost | $85,000 |
|
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| $91,000 |
Per Unit Calculations:
Direct Materials: |
|
Direct Labor: |
|
Variable Manufacturing Overhead: |
|
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