Ceramics Etc.

is a manufacturer of large flower pots for urban settings. The company has these standards:

LOADING...

(Click the icon to view the standards.)

LOADING...

(Click the icon to view the actual results.)

LOADING...

(Click the icon to view related variances.)

...

Question content area top right

Part 1

Prepare a standard cost income statement for the company's management. Assume that sales were

$1,040,000

and actual marketing and administrative expenses were

$81,000.

(Use a minus sign or parentheses for favorable variances.)

Question content area bottom

Part 1

Ceramics Etc.
Standard Cost Income Statement
Month Ended
	Manufacturing cost variances: U/F
	Total manufacturing variances
	Gross profit (actual)
	Operating income (loss)

- X Data table 13 pounds per pot at a cost of $3.00 per Direct materials (resin) -pound Direct labor.. .2.0 hours at a cost of $17.00 per hour Standard variable manufacturing overhead rate $4.00 per direct labor hour Budgeted fixed manufacturing overhead .$17,000 Standard fixed MOH rate........ .....$5.00 per direct labor hour (DLH) Ceramics Etc. allocates manufacturing overhead to production based on standard direct labor hours. The cost of goods sold at standard cost totaled $182,000. Data table - X Data table Last month, the company reported the following actual results for the production of 2,000 flower pots $ 5,520 U $2,400 U Direct materials price variance Direct materials quantity variance Direct labor rate variance Direct labor efficiency variance $4,600 F $10,200 U Purchased 27,600 pounds at a cost of $3.20 per pound; Direct materials. used 26,800 pounds to produce 2,000 pots Worked 2.3 hours per flower pot (4,600 total DLH) at a Direct labor... cost of $16.00 per hour Actual variable manufacturing $4.40 per direct labor hour for total actual variable overhead... manufacturing overhead of $20,240 Actual fixed manufacturing overhead $16,700 Standard fixed manufacturing overhead allocated based on actual production. $20,000 Variable MOH rate variance Variable MOH efficiency variance Fixed MOH budget variance Fixed MOH volume variance $1,840 U $2,400 U $300 F $3,000 F - X Data table 13 pounds per pot at a cost of $3.00 per Direct materials (resin) -pound Direct labor.. .2.0 hours at a cost of $17.00 per hour Standard variable manufacturing overhead rate $4.00 per direct labor hour Budgeted fixed manufacturing overhead .$17,000 Standard fixed MOH rate........ .....$5.00 per direct labor hour (DLH) Ceramics Etc. allocates manufacturing overhead to production based on standard direct labor hours. The cost of goods sold at standard cost totaled $182,000. Data table - X Data table Last month, the company reported the following actual results for the production of 2,000 flower pots $ 5,520 U $2,400 U Direct materials price variance Direct materials quantity variance Direct labor rate variance Direct labor efficiency variance $4,600 F $10,200 U Purchased 27,600 pounds at a cost of $3.20 per pound; Direct materials. used 26,800 pounds to produce 2,000 pots Worked 2.3 hours per flower pot (4,600 total DLH) at a Direct labor... cost of $16.00 per hour Actual variable manufacturing $4.40 per direct labor hour for total actual variable overhead... manufacturing overhead of $20,240 Actual fixed manufacturing overhead $16,700 Standard fixed manufacturing overhead allocated based on actual production. $20,000 Variable MOH rate variance Variable MOH efficiency variance Fixed MOH budget variance Fixed MOH volume variance $1,840 U $2,400 U $300 F $3,000 F