Question
Actual Budget Variance Cases produced and sold 10,300 10,000 300 Favorable Sales revenue $2,081,900 $1,990,000 $91,900 Favorable Less variable expenses Direct material 593,400 576,800 16,600
Actual | Budget | Variance | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Cases produced and sold | 10,300 | 10,000 | 300 | Favorable | ||||||
Sales revenue | $2,081,900 | $1,990,000 | $91,900 | Favorable | ||||||
Less variable expenses | ||||||||||
Direct material | 593,400 | 576,800 | 16,600 | Unfavorable | ||||||
Direct labor | 289,800 | 279,000 | 10,800 | Unfavorable | ||||||
Variable manufacturing overhead | 231,500 | 229,200 | 2,300 | Unfavorable | ||||||
Variable selling expenses | 113,300 | 111,600 | 1,700 | Unfavorable | ||||||
Variable administrative expenses | 43,400 | 42,800 | 600 | Unfavorable | ||||||
Total variable expense | 1,271,400 | 1,239,400 | 32,000 | Unfavorable | ||||||
Contribution margin | 810,500 | 750,600 | 59,900 | Favorable | ||||||
Less fixed expenses | ||||||||||
Fixed manufacturing overhead | 128,000 | 132,300 | 4,300 | Favorable | ||||||
Fixed selling expenses | 85,900 | 85,300 | 600 | Unfavorable | ||||||
Fixed administrative expenses | 150,000 | 148,500 | 1,500 | Unfavorable | ||||||
Total fixed expense | 363,900 | 366,100 | (2,200) | Favorable | ||||||
Operating income | $446,600 | $384,500 | $62,100 | Favorable |
Direct materials purchased: 55,300 pounds at a total of $652,540 | |||
Direct materials used: 51,200 pounds | |||
Direct labor hours worked: 27,280 at a total cost of $300,168 | |||
Machine hours used: 52,000 |
Standard Price | Standard Quantity | Standard Cost | ||||||
---|---|---|---|---|---|---|---|---|
Direct materials | $11.80 per pound | 5.00 pounds | $59.00 | |||||
Direct labor | $11.10 per DLH | 2.60 DLH | 28.86 | |||||
Variable overhead | $4.50 per MH | 5 MH | 22.50 | |||||
Fixed overhead | $2.60 per MH | 5 MH | 13.00 | |||||
Total standard cost per case | $123.36 |
Direct material price variance | $0 | Not Applicable | ||
---|---|---|---|---|
Direct material quantity variance | $3540 | Favorable |
Direct labor rate variance | $2640 | Favorable | ||
---|---|---|---|---|
Direct labor efficiency variance | $5550 | Unfavorable |
Variable overhead spending variance | $2500 | Favorable | ||
---|---|---|---|---|
Variable overhead efficiency variance | $2250 | unfavorable |
Fixed overhead spending variance | $4300 | Favorable |
(h)
Prepare a performance report that will assist Lexi in evaluating her efforts to control production costs. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)
Price/Rate/Spending Variance | Quantity/Efficiency Variance | ||||||
---|---|---|---|---|---|---|---|
Direct materials | $enter a dollar amount | select an option UnfavorableFavorableNot Applicable | $enter a dollar amount | select an option UnfavorableFavorableNot Applicable | |||
Direct labor | enter a dollar amount | select an option Not ApplicableFavorableUnfavorable | enter a dollar amount | select an option UnfavorableNot ApplicableFavorable | |||
Variable overhead | enter a dollar amount | select an option Not ApplicableFavorableUnfavorable | enter a dollar amount | select an option Not ApplicableFavorableUnfavorable | |||
Fixed overhead | enter a dollar amount | select an option UnfavorableFavorableNot Applicable | enter a dollar amount | select an option UnfavorableFavorableNot Applicable | |||
Total | $enter a total amount |
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