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Backpack Inc. reported the following actual and budgeted results for 2021. Actual Budgeted Backpack production 200,000 180,000 Backpacks sold 150,000 160,000 Selling price $20 $18
Backpack Inc. reported the following actual and budgeted results for 2021.
Actual Budgeted
Backpack production 200,000 180,000
Backpacks sold 150,000 160,000
Selling price $20 $18
Direct materials per backpack 1.5 yards @ $2.00
Direct labor per backpack 0.5 hr. @ $14
Direct materials used in yards 290,000
Direct material costs $580,000
Direct manufacturing hours used 350,000
Direct labor costs $4,550,000
Fixed manufacturing overhead costs $900,000 $825,000
Required:
- Calculate the direct materials price and efficiency variances.
- Calculate the direct labor price and efficiency variances.
- Fixed overhead flexible and production volume variances.
- Calculate the flexible budget variance for sales revenue.
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