Ch06-Practice Problems - PDR Question 8 of 9 > View Policies -/1 Current Attempt in Progress At the monthly management meeting. Leslie Smith, president of Mama Fran's Fantastic Foods, was reviewing the April budget report with some satisfaction. "Our actual results are never exactly what we budget, but I guess if we're off by only 2% to 3%, we've done a good job forecasting. The report she referred to follows: April Budget Report Actual Budget Variance Sales (in pounds) 450,000 400,000 50,000 F Revenue $3,555,000 $3,200,000 $355,000 F Less variable expenses Direct material 865,000 580,000 285,000 U Direct labor 348,000 336,000 12.000 U Variable overhead 750,000 648,000 102,000 U Total variable expenses 1,963,000 1,564,000 399,000 U Contribution margin $1,592,000 $1,636,000 ($44,000 U) Nathan Porter, the company's purchasing manager, chimed in. "It surprises me that we did as well as we did. I know that chocolate prices went up dramatically last month, so I expected a much larger variance. And we had that little mix-up when we ordered a batch of whole almonds instead of sliced almonds." But controller Ashley Corley looked concerned. "Hang on a minute, guys. I don't think this budget report give us the true picture. Let me work on it some more and get back to you." Ashley's first step was to track down the following standard cost card for the cookies. Chocolate Nut Supreme Cookies Item Direct materials Cookie mix Quantity Standard Unit Cost Total Cost $0.20 Question 8 of 9 < > Item Direct materials Chocolate Nut Supreme Cookies Quantity Standard Unit Cost Total Cost Cookie mix 10 ounces $0.02 per ounce $0.20 Milk chocolate: 5 ounces $0.15 per ounce 0.75 Almonds 1 ounce $0.50 per ounce 0.50 Total direct materials $1.45 Direct labor Mixing 1 minute $14.40 per hour 0.24 Baking 2 minutes $18.00 per hour 0.60 Total direct labor 0.84 Variable overhead 3 minutes $32.40 per hour 1.62 Total standard cost per pound $3.91 Ashley also tracked down this additional information about the month's operations. Item Actual Quantity Used Actual Cost Direct materials Cookie mix 4,650,000 ounces $93,000 Milk chocolate 2,660,000 ounces 532,000 Almonds 480,000 ounces 240,000 Direct labor Mixing 540,000 minutes 108.000 Baking 800,000 minutes 240,000 Variable overhead 750,000 Total actual variable costs $1,963,000 /1 Question 8 of 9 < > (a) -/1 E Prepare a more informative performance report for the month of April. (Do not leave any answer field blank. Enter O for amounts. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 0 eTextbook and Media Save for Later 5 Actual Results Flexible Budget Variance $ Attempts: unlimited Submit