Chrome File Edit View History Bookmarks Profiles Tab Window Help NELOF Q Thu Apr 27 12:15 PM I Submit: Problem Set (PS) Weel x C canvas.illinois.edu/courses/33591/assignments/617805?module_item_id=2346392 * 0 8 Page of 2 - ZOOM + 1. Fixed Budgets, Flexible Budgets and the Flexible Budget Performance Report (3.5pts): YaHo, Inc. reports the following information for March 2023 Budgeted Actua Sales $25 per unit $280,000 total Variable Costs $11 per unit $125,000 total Fixed Costs (total) $108,650 total $108,000 total Units produced and sold 12,000 11,500 a. Prepare a flexible budget for March 2023 at the following levels of activity: 11,000 units; 12,000 units; 13,000 units. (1.5pts) b. Prepare a 'Flexible Budget Performance Report' for March 2023 at the actual level of activity of 11,500 units, showing variances between the flexible budget (@11,500 units) and actual results at 11,500 units. List variable and fixed expenses separately, and indicate variances as favorable (F) or unfavorable (U). (1.5pts) C. Calculate the Sales Price Variance for March 2023. Indicate whether this variance is favorable (F) or unfavorable (U). (0.5pts) 2. Direct Materials (DM) Variances (1.5pts; 0.5pts each variance): Honest Joe, Corp. has set the following standards for direct materials (DM) costs per unit for the good it manufactures: Standard Quantity: 1.8 kg per unit Standard Price: $6.00 per k During the month of February 2023, the firm incurred the following actual DM costs to produce 10,000 units: Actual Total Quantity: 18,800 total kg Actual Total DM Cost: $111,860 a. Calculate the DM cost variance. Indicate whether this variance is favorable (F) or unfavorable (U). 5 Calculate the DM price variance. Indicate whether this variance is favorable (F) or unfavorable (U). Calculate the DM quantity variance. Indicate whether this variance is favorable (F) or unfavorable (U). 3 APR 27 P W zoomChrome File Edit View History Bookmarks Profiles Tab Window Help NELOFQ Thu Apr 27 12:16 PM I Submit: Problem Set (PS) Week C canvas.illinois.edu/courses/33591/assignments/617805?module_item_id=2346392 Page of 2 O ZOOM + 3. Direct Labor (DL) Variances (1.5pts; 0.5pts each variance): Beautiful Beaches, Ltd. has set the following standards for direct labor (DL) costs per unit for the good it manufactures: Standard Hours: 0.75 DL hours per unit Standard Rate: $20 per DL hour During the month of March 2023, the firm incurred the following actual DL costs to produce 25,000 units: Actual total Hours: 19,000 total DL hours Actual total DL cost: $370,500 a. Calculate the DL cost variance. Indicate whether this variance is favorable (F) or unfavorable (U). b. Calculate the DL rate variance. Indicate whether this variance is favorable (F) or unfavorable (U) Calculate the DL efficiency variance. Indicate whether this variance is favorable (F) or unfavorable (U). 4. Overhead (OH) Variances (3.5pts): Better Than That Co. provided the following information regarding Factory Overhead (OH) from its flexible OH budget. The company has an operating capacity of 50,000 units and expects to perate at 70% of its productive capacity (i.e. expects to operate at 35,000 units, which is 70%*50,000): Operating Levels (% of capacity) Flexible OH Budget: 50% 70% 80% 30% Budgeted output (units) 30,000 35,000 40,000 45,000 Budgeted DL hours 24,000 DLh 28,000 DLh 32,000 DLh 36,000 DLh Budgeted OH Variable OH $78,000 $91,00 $104,000 $117,000 Fixed OH $168,000 $168,000 $168,000 $168,000 During the current month, the company actually operated at 80% capacity and actually used 34,000 DL hours to produce 40,000 units. The following actual overhead costs were incurred: Actual Variable OH: $119,000 Actual Fixed OH: $170,000 a. (0.5pts) Calculate the predetermined standard OH rate per DL hour for (HINT: remember to calculate these OH rates at the BUDGETED capacity): Variable OH Fixed OH b. (0.5pts) Calculate the Variable OH Cost Variance. Indicate whether this variance is favorable (F) or unfavorable (U). c. (0.5pts) Calculate the Variable OH Spending Variance. Indicate whether this variance is favorable (F) or unfavorable (U). d. (0.5pts) Calculate the Variable OH Efficiency Variance. Indicate whether this variance is favorable (F) or unfavorable (U). e. (0.5pts) Calculate the Fixed OH Cost Variance. Indicate whether this variance is favorable (F) or unfavorable (U). f. (0.5pts) Calculate the Fixed OH Spending Variance. Indicate whether this variance is favorable (F) or unfavorable (U). g. (0.5pts) Calculate the Fixed OH Volume Variance. Indicate whether this variance is favorable (F) or unfavorable (U). OVER => 3 APR 27 astv 4 P W zoom