\begin{tabular}{|c|c|} \hline \begin{tabular}{l} Given Info for student \\ number ending with: \end{tabular} & 03 \\ \hline \begin{tabular}{l} Standard Direct \\ materials: \end{tabular} & \begin{tabular}{c} 4 pounds @ $10/lb.= \\ $40 \end{tabular} \\ \hline Standard Direct labor: & \begin{tabular}{c} 2 hours @ \$13/hour = \\ $26 \end{tabular} \\ \hline \begin{tabular}{l} Standard Variable \\ overhead: \end{tabular} & \begin{tabular}{c} 2 hours @$9/ hour = \\ $18 \end{tabular} \\ \hline \begin{tabular}{l} Total Standard cost per \\ unit \end{tabular} & $84 \\ \hline \begin{tabular}{l} Planning budget based \\ on producing \& selling \end{tabular} & 29,000 units \\ \hline \begin{tabular}{l} Actual production \& \\ sales \end{tabular} & 34,000 units \\ \hline \begin{tabular}{l} Actual Direct materials \\ purchased \& used \end{tabular} & \begin{tabular}{c} 160,000 pounds @ \\ $8.50/ pound \end{tabular} \\ \hline \begin{tabular}{l} Actual Direct labor hours \\ worked \end{tabular} & \begin{tabular}{c} 59,000 hours @ \\ $14/ hour \end{tabular} \\ \hline \begin{tabular}{l} Actual variable \\ manufacturing overhead \end{tabular} & $564,040 \\ \hline \end{tabular} Questions: 1. What is the materials price variance? 2. What is the labor rate variance? 3. What is the labor efficiency variance? 4. How is a planning budget different from a flexible budget? 5. What are the two purposes of a budget? 6. Why is the sales budget the first step in the master budgeting process? \begin{tabular}{|c|c|} \hline \begin{tabular}{l} Given Info for student \\ number ending with: \end{tabular} & 03 \\ \hline \begin{tabular}{l} Standard Direct \\ materials: \end{tabular} & \begin{tabular}{c} 4 pounds @ $10/lb.= \\ $40 \end{tabular} \\ \hline Standard Direct labor: & \begin{tabular}{c} 2 hours @ \$13/hour = \\ $26 \end{tabular} \\ \hline \begin{tabular}{l} Standard Variable \\ overhead: \end{tabular} & \begin{tabular}{c} 2 hours @$9/ hour = \\ $18 \end{tabular} \\ \hline \begin{tabular}{l} Total Standard cost per \\ unit \end{tabular} & $84 \\ \hline \begin{tabular}{l} Planning budget based \\ on producing \& selling \end{tabular} & 29,000 units \\ \hline \begin{tabular}{l} Actual production \& \\ sales \end{tabular} & 34,000 units \\ \hline \begin{tabular}{l} Actual Direct materials \\ purchased \& used \end{tabular} & \begin{tabular}{c} 160,000 pounds @ \\ $8.50/ pound \end{tabular} \\ \hline \begin{tabular}{l} Actual Direct labor hours \\ worked \end{tabular} & \begin{tabular}{c} 59,000 hours @ \\ $14/ hour \end{tabular} \\ \hline \begin{tabular}{l} Actual variable \\ manufacturing overhead \end{tabular} & $564,040 \\ \hline \end{tabular} Questions: 1. What is the materials price variance? 2. What is the labor rate variance? 3. What is the labor efficiency variance? 4. How is a planning budget different from a flexible budget? 5. What are the two purposes of a budget? 6. Why is the sales budget the first step in the master budgeting process
