Coop Statues
Coop Statues manufactures statues of your favorite Star Trek characters. All statues are the same size,
and each statue requires the same amount of resources. The following information was budgeted
at the beginning of the year.
Expected production and sales				6,000	statues
Direct materials				72,000	pounds
Direct labor				21,000	hours
Total fixed costs				$1,200,000
Shown below are standard quantities and prices per statue:
		Standard		Standard		Standard
		Quantity		Price		Cost
		12	pounds	$10	per pound	$120
		3.5	hours	$50	per hour	$175	1.458333
						$295
During the year, the actual number of statues produced and sold was 5,500., Actual cost of direct
materials used was $668,800, based on 70,400 pounds purchased and used at $9.50 per pound.
Direct labor hours actually worked were 18,500, at the rate of $51.50 per hour, totaling $952,750.
Actual fixed costs were $1,180,000.
Required:
1) Prepare a flexible budget performance report for direct materials, direct labor, and fixed costs.
This report should show actual, budget, and total variance for the three costs. Indicate whether
the variance is favorable or unfavorable.
2) Now get into more detail. For the variable costs (direct materials and direct labor), compute
the price (rate) variance and quantity (efficiency) variance. Remember, the total of
each of these variances should agree with the variance shown on your flexible budget report.