Brodrick Company expects to produce 21,600 units for the year ending December 31. A flexible budget for 21,600 units of production reflects sales of $496,800: variable costs of $64.800; and fixed costs of $144,000. QS 23-3 Flexible budget LO P1 If the company instead expects to produce and sell 27,800 units for the year, calculate the expected level of income from operation Answer is complete but not entirely correct. -Flexible Budget - Flexible Budget at ... Variable Total Fixed Amount 21,600 units 27.800 Cost units per Unit $ 25.00 $ 540,000 $ 662,500 3.00 64,000 3 79,500 $ 22.00 $ 476,000 $ 583.000 $ 144,000 144,000 144,000 332,000 $ 439,000 Sales Variable cost Contribution margin Fixed costs Income from operations en Brodrick Company expects to produce 21,600 units for the year ending December 31. A flexible budget for 21,600 units of production reflects sales of $496,800; variable costs of $64,800; and fixed costs of $144,000. QS 23-4 Flexible budget performance report LO P1 Assume that actual sales for the year are $590,400 (27,800 units), actual variable costs for the year are $113,900, and actual fixed costs for the year are $134,000. Prepare a flexible budget performance report for the year. BRODRICK COMPANY Flexible Budget Performance Report For Year Ended December 31 Flexible Budget Actual Results Variances Favorable Unfavorable Sales Variable expenses Contribution margin Fixed expenses Income from operations 0 0 $ 0 $ 0 BatCo makes metal baseball bats. Each bat requires 1.00 kg of aluminum at $20 per kg and 0.25 direct labor hours at $18 per hour Overhead is assigned at the rate of $36 per direct labor hour. QS 23-5 Standard cost card LO C1 What amounts would appear on a standard cost card for BatCo? Cost per Input $ 20.00 Std. Cost per Unit Direct materials Direct labor Overhead Qty per Unit 1.00/kg 0.25 hrs 0.25 hes x X BatCo makes metal baseball bats. Each bat requires 1.00 kg of aluminum at $20 per kg and 0.25 direct labor hours at $18 per hour. Overhead is assigned at the rate of $36 per direct labor hour. QS 23-6 Cost variances LO C2 Assume the actual cost to manufacture one metal bat is $39.50. Compute the cost variance and classify it as favorable or unfavorable Qty per Unit Cost per Total Input Direct materials Direct labor Overhead Direct materials Direct labor Overhead Units manufactured Standard (6 lbs. $ per lb.) (2 hrs. e $16 per hr.) (2 hrs. e $11 per hr.) Actual 49,200 lbs. @ $8.20 per lb. 15,900 hrs. @ $16.50 per hr. $184,200 8,100 Exercise 23-9 Direct materials variances LO P2 AQ - Actual Quantity SQ - Standard Quantity AP = Actual Price SP - Standard Price Compute the direct materials price variance and the direct materials quantity variance. Indicate whether each variance is unfavorable. Standard Cost AQ X SP 18 X SP Actual Cost AQ 49,200 $ 403,440 AP $ 8.20 49,200 $ 8.00 $ 8.00 X $ 393,600 $ 9,840 $ 0 Direct materials price variance Direct materials quantity variance Total direct materiais variance $ 9,840 (Unfavorable o Favorable Unfavorable A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard (6 lbs. $e per lb.) 12 hrs. $16 per hr.) (2 hrs. $11 per hr.) Actual 49,200 lbs. 4 $8.20 per lb. 15,900 hrs. $16.50 per hr. $184,200 8,100 Exercise 23-10 Direct labor variances LO P2 AH = Actual Hours SH - Standard Hours AR = Actual Rate SR = Standard Rate Compute the direct labor rate variance and the direct labor efficiency variance Indicate whether each variance is favorab unfavorable. Actual Cost Standard Cost $ 0 5 0 $ 0 + 0 Hart Company made 3,700 bookshelves using 21,000 board feet of wood costing $268,800. The company's direct materials standards for one bookshelf are 6 board feet of wood at $12.70 per board foot. Exercise 23-13 Computation and interpretation of materials variances LO P2 AQ - Actual Quantity SQ - Standard Quantity AP - Actual Price SP - Standard Price (1) Compute the direct materials price and quantity variances incurred in manufacturing these bookshelves. Actual Cost Standard Cost 0 $ 0 $ 0 $ 0 $ O
