Ch. 10 Flexible Budgets QUIZ FOR Question 3, P10-66A (similar to) HW Score: 53.74%, 5.37 of 10 points Vinter 20 Part 3 of 11 Points: 0.15 of 4 Eagle System assembles PCs and uses flexible budgeting and a standard cost system. Eagle System allocates overhead based on the number of direct materials parts. The compan K includes the following selected data: (Click the icon to view the selected data.) Requirements Requirement 1. Determine the company's standard cost for one unit. First, select the formula, then compute the standard cost per unit. (Round your answer to the nearest cent.) Standard total manufacturing costs 1 Standard units sold = Standard cost per unit $ 4,224,000 20,000 = $ 211.20 Requirement 2. Prepare a flexible budget based on the actual number of PCs sold. Eagle System Flexible Budget for Actual Outputs Sales revenue Variable manufacturing expenses: Direct materials Direct labour Variable overhead Fixed expenses: Fixed overhead Total cost of goods sold Gross profitPart 2 of 11 Points: 0 15 of 4 X Data table er of di Static Budget Actual Results (20,000 PCs) (22,000 PCs) Sales (20,000 PCs x $390 ) 7,800,000 (22,000 PCs x $410 ) $ 9,020,000 Variable manufacturing expenses: Direct materials (200,000 parts x $9.90 1,980,000 (218,500 parts x $9.70 ) 2, 119,450 Direct labour (40,000 hrs. x $14.10 ) 564,000 (42,500 hrs. x $14.70 ) 624,750 Variable overhead (200,000 parts x $ 3.90 ) 780,000 (218,500 parts x $ 4.00 ) 874,000 Fixed manufacturing expenses: Fixed overhead 900,000 930,000 Total cost of goods sold 4,224,000 4,548,200 3,576,000 $ 4,471,800 Gross profit-X Requirements en 1. Determine the company's standard cost for one unit. 2. Prepare a flexible budget based on the actual number of PCs sold. url 3. Compute the price variance for direct materials and for direct labour. 4. Compute the efficiency variances for direct materials and direct labour. 5. For manufacturing overhead, compute the total variance, the flexible fla budget variance, and the production volume variance. 6. What is the total flexible budget variance for Eagle System's manufacturing costs? Show how the total flexible budget variance is divided into materials, labour, and overhead variances. 7. Have Eagle System's managers done a good job or a poor job controlling material and labour costs? Why? 8. Describe how Eagle System's managers can benefit from the standard costing De system. Print Done