ACCY 201 - Friday Discussion Homework #12 - 10 points Fall 2022

1. Fixed Budgets, Flexible Budgets and the Flexible Budget Performance Report (3.5pts): YaHo, Inc. reports the following information for August 2022. Budgeted Actual Sales $80 per unit $1,320,800 total Variable Costs $57 per unit $937,250 total Fixed Costs (total) $305,000 total $303,200 total Units produced and sold 16,000 16,400 a. Prepare a flexible budget for August 2022 at the following levels of activity: 14,000 units; 15,000 units; 17,000 units. (1.5pts) b. Prepare a Flexible Budget Performance Report for August 2022 at the actual level of activity of 16,400 units, showing variances between the flexible budget (@16,400 units) and actual results at 16,400 units. List variable and fixed expenses separately, and indicate variances as favorable (F) or unfavorable (U). (1.5pts) c. Calculate the Sales Price Variance for August 2022. Indicate whether this variance is favorable (F) or unfavorable (U). (0.5pts)

2. Direct Materials (DM) Variances (1.5pts; 0.5pts each variance): Honest Joe, Corp. has set the following standards for direct materials (DM) costs per unit for the good it manufactures: Standard Quantity: 8.0 kg per unit Standard Price: $2.50 per kg During the month of October, the firm incurred the following actual DM costs to produce 4,500 units: Actual Total Quantity: 34,880 total kg Actual Total DM Cost: $104,640 a. Calculate the DM cost variance. Indicate whether this variance is favorable (F) or unfavorable (U). b. Calculate the DM price variance. Indicate whether this variance is favorable (F) or unfavorable (U). c. Calculate the DM quantity variance. Indicate whether this variance is favorable (F) or unfavorable (U).

1. Fixed Budgets, Flexible Budgets and the Flexible Budget Performance Report (3.5pts): YaHo, Inc. reports the following information for August 2022. a. Prepare a flexible budget for August 2022 at the following levels of activity: 14,000 units; 15,000 units; 17,000 units. (1.5pts) b. Prepare a 'Flexible Budget Performance Report' for August 2022 at the actual level of activity of 16,400 units, showing variances between the flexible budget (@16,400 units) and actual results at 16,400 units. List variable and fixed expenses separately, and indicate variances as favorable (F) or unfavorable (U). (1.5pts) c. Calculate the Sales Price Variance for August 2022. Indicate whether this variance is favorable (F) or unfavorable (U). (0.5pts) 2. Direct Materials (DM) Variances (1.5pts; 0.5pts each variance): Honest Joe, Corp. has set the following standards for direct materials (DM) costs per unit for the good it manufactures: Standard Quantity: 8.0kg per unit Standard Price: $2.50 per kg During the month of October, the firm incurred the following actual DM costs to produce 4,500 units: Actual Total Quantity: 34,880 total kg Actual Total DM Cost: $104,640 a. Calculate the DM cost variance. Indicate whether this variance is favorable (F) or unfavorable (U). b. Calculate the DM price variance. Indicate whether this variance is favorable (F) or unfavorable (U). c. Calculate the DM quantity variance. Indicate whether this variance is favorable (F) or unfavorable (U)