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AutoSave ON On 43 6 . 6 8 = w Practice 8 - Saved Q Home Insert Draw Design Layout References Mailings Review View LE Share Comments Ch 8 - PLEASE ONLY DO IN EXCEL AND SCREENSHOT IN EXCEL ONLY THANK Note: For Material and Labor STANDARD use the ACTUAL number of units produced x standard per YOU. unit (you can use either the amount per unit x standard rate or the standard cost per unit given instead...example, Direct materials standard is 0.25 pounds per unit x $8 per pound or $2.00 per Alternate problem D Use the following data for Andrea Company in preparing its planned pound purchased. UNIT. Remember, this will tell you the material standard cost is $2 per UNIT and is not the cost per operating budget: Expected sales volume 450,000 units Variable overhead is applied based on units produced so the standard cost provided is for each unit Forecasted selling price $72 per unit produced. Calculate STANDARD for Variable OH using standard volume x standard cost per unit. Variable manufacturing costs per unit: Problem F Based on a standard volume of output of 96,000 units per month, the standard cost Direct materials $ 27.00 Direct labor 9.00 per unit of the product manufactured by Tahoe Company consists of Manufacturing overhead 6.00 Direct materials (0.25 pounds x $8 per pound) $2.00 Fixed manufacturing overhead per period $ 900,000 Direct labor (0.5 hours x $7.60 per hour) 3.80 Variable manufacturing overhead 2.50 Selling and administrative expenses: Fixed manufacturing overhead ($144,000 in total) 1.50 Variable (per unit $ 3.00 Total $9.80 Fixed (per period $ 750,000 Assume no beginning inventory. Federal income taxes are budgeted at 40% of income before income A total of 25,200 pounds of materials was purchased at $8.40 per pound. During May, 98,400 taxes. units were produced with the following costs Direct materials used (24,000 pounds at $8.40) $201,600 Direct labor (50,000 hours at $7.80) 390,000 The actual results for Andrea Company for the year ended December 31 follow. (Note: The actual sales price Variable manufacturing overhead 249,000 was $80 per unit.) Fixed manufacturing overhead 145,000 Sales (500,000 units @ $80 per unit) $40,000,000 Compute the materials price and usage variances, the labor rate and efficiency variances, and the Cost of goods sold: overhead budget and volume variances. (Overhead is applied based on units produced.) Direct materials $12,000,000 Direct labor 4,400,000 Alternate problem A The following data apply to Roseanne Company for August, when 2,500 Variable manufacturing overhead 4,000,000 units were produced: Fixed manufacturing overhead 1000,000 21,400,000 Gross margin $18,600,00 Materials used: 16,000 pounds Selling and administrative expenses: Variable $ 1,400,000 Standard materials per unit: 6 pounds at $5.00 per pound Fixed Income before federal income taxes 800.000 2.200.000 $16,400,000 Materials purchased: 24,000 pounds at $4.80 per pound Deduct: Federal income taxes 6.560.000 Net income $ 9.840.000 Direct labor: 5,800 hours at a total cost of $69,600 Standard labor per unit: 2 hours at $11 per hour. a. Prepare a planned operating budget for the year ended December 31 using the expected sales volume. Compute the materials and labor variances. Discuss possible explanations for the variances you b. Using a flexible operating budget based on actual sales volume, analyze the efficiency of operations. calculated (meaning, what might have happened?) Comment on the results. Adapted from "Accounting Principles: A Business Perspective, Managerial Accounting" A Textbook Equity Open College Textbook Adapted from "Accounting Principles: A Business Perspective, Managerial Accounting" A Textbook Equity Open College Textbook originally by Hermanson, Edwards, and Maher originally by Hermanson, Edwards, and Maher Page 1 of 2 521 words LIX English (United States) Focus + 100%