Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

budget columns and the static budget columns. Label each varianc variances with a $0 balance, make sure to enter 0 in the appropriate field. If

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
budget columns and the static budget columns. Label each varianc variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Flexible-Budget Flexible Sales-Volume Static Results Variance Budget Variance Budget 5.700 0 Output units 5.700 6,300 Revenues $ 4,446,000 $ 228,000 F $4,218,000 $ 444,000 U $4,662,000 600U F 144,600 F Direct materials $ 783,000 $ 7,800 V $ 775,200 $ 81,600 F $ 856,800 Direct manufacturing labor 590,400 8,100 F 598,500 63,000 F 661,500 Fixed costs 1,230,000 270,000 1,500,000 1,500,000 Total costs $ 2,603,400 S 270,300F $ 2,873,700 $ $ 3,018,300 Operating income $ 1,842,600 $ 498,300 F $1,344,300 $ 299,400 U $ 1,643,700 Requirement 2. Compute price and efficiency variances for direct materials and direct manufacturing labor. Compute the price and efficiency variances for direct materials. Label each variance as favorable (F) or unfavorable (U). Price variance Efficiency variance Points: 3.35 of Milan Statuary manufactures bust statues of famous historical figures. All statues Standard quantities, standard prices, and standard unt costs follow for direct are the same size. Each unit requires the same amount of resources. The materials and direct manufacturing labor: following information is from the static budget for 2017: (Click the icon to view the data) Click the icon to view the static budget data.) Read the requirements Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0in the appropriate field. If the variance is zero, do not select a label) Actual Flexible-Budget Flexible Sales-Volume Static Results Variance Budget Variance Budget Read the requirements. ..... Lible budget columns and the static budget columns. Label each varia Data Table Expected production and sales Expected selling price per unit Total fixed costs 6,300 units 740 $ $ 1,500,000 Print Done Fiances for direct materials and direct manufacturing labor. Fect materials. Label each variance as favorable (F) or unfavorable (U). Get More Help CI Click the icon to view the static budget dala.) Read the regimente with the actual re nces with a so ball Data Table Unfavorable put units venues Standard Quantity Standard Price Standard Unit Cost Direct materials 17 pounds $8 per pound $136 Direct manufacturing labor 3.0 hours $35 per hour $105 During 2017, actual number of units produced and sold was 5,700, at an average selling price of $780. Actual cost of direct materials used was $783,000, based on 72,500 pounds purchased at $10.80 per pound, Direct manufacturing labor-hours actually used were 18,000, at the rate of $32.80 per hour. As a result, actual direct manufacturing labor costs were $590,400. Actual fixed costs were $1,230,000. There were no beginning or ending inventories. ect materials rect manufacturing 14 med costs tal costs Print Done perating income requirement 2. Compl Compute the price and more TOT Price variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance The Basics

Authors: Erik Banks

1st Edition

0415384575, 9780415384575

More Books

Students also viewed these Accounting questions

Question

Am I trying to change or control others?

Answered: 1 week ago

Question

HW7 (ChB)

Answered: 1 week ago