Cost accounting by Horngren problem $7-35$ to $7-40,$ then quesion from $8-39$ to $8-41$

Please provide the solutions for the above questions, the same is attached. $7-35$ Flexible budgets, variance analysis. You have been hired as a consultant by Sandeep, the

president of a small manufacturing company that makes automobile parts. Sandeep is an excellent

engineer, but he has been frustrated by working with inadequate cost data.

You helped install flexible budgeting and standard costs. Sandeep has asked you to consider the

following May data and recommend how variances might be computed and presented in performance

reports:

Sandeep was disappointed. Although output units sold exceeded expectations, operating income

did not. Assume that there was no beginning or ending inventory.

You decide to present Sandeep with alternative ways to analyze variances so that he

can decide what level of detail he prefers. The reporting system can then be designed

accordingly.

What are some likely causes for the variances you report in requirement $1?7\mathrm{.}36$ Flexible$-$budget preparation and analysis. Bank Printers Limited, produces luxury check$-$books with

three checks and stubs per page. Each checkbook is designed for an individual customer and is

Ordered through the customer's bank.

The company's operating budget for September included these data:

Fixed costs for the month

The actual results for September were: $12,000$

Number of checkbooks produced and sold

Average selling price per book

Variable cost per book

Fixed costs for the month

$12,000$

$21$

$7$

$1,50,000$

The executive Vice$-$president of the company observed that the operating income for September

was much less than anticipated, despite a higher$-$than$-$budgeted selling price and a lower$-$than$-$

budgeted variable cost per unit. You have been asked to provide explanations for the disappointing

September results.

Bank Printer Limited develops its flexible budget on the basis of budgeted per$-$output$-$unit revenue

and per$-$output$-$unit variable costs without detailed analysis of budgeted inputs.

Prepare a Level $1$ analysis of the September performance.

Prepare a Level $2$ analysis of the September performance.

Why might Bank Printer find the Level $2$ analysis more informative than the Level $1$ analysis?

Explain your answer. $392$ COST ACCOUNTING: A MANAGERIAL EMPHASIS

The following data were compiled regarding actual performance:

Actual output units $($chairs$)$ produced, $20,000$; square yards of input purchased and used, $37,000$ :

price per square yard, $102$; direct manufacturing labor costs, $3,52,800$; actual hours of input $9,000$ ;

labor price per hour, $39\mathrm{.}20.$

$7$ Thoquffed

Show computations of price and efficiency variances for direct materials and direct manufacurumg

labor. Give a plausible explanation of why the variances occurred: Is the manager's glee warranted? Prepare a report that provides a more detailed explanation of wity

the static budget was not achieved. Actual output was $20,000$ units$\mathrm{.}7-39$ Flexible budget, direct materials and direct manufacturing labor variances. TNT manufactures bust

statues of famous historical figures. All statues are the same size. Each unit requires the same amuin

of resources. The following information is from the static budget for $2017$ :

Expected production and sales

Direct materials

$5,000$ units

Direct manufacturing labor

$50,000kgs$

Total fixed costs

$20,000$ hours

$10,00,000$

Standard quantities, standard prices, and standard unit costs follow for direct materials and dirfed

manufacturing labor.

During $2016,$ actual number of units produced and sold was $6,000.$ Actual cost of direct materials ${?}^{{50}^{50}}$

was $59,40,000,$ based on $54,000$ kgs purchased at $110$ per kg$.$ Direct manufacturing labor$-1.$

actually used were $25,000,$ at the rate of $38$ per hour. This resulted in actual direct manufaculufing

inventories.

Calculate sales$-$volume variance and flexible$-$budget variance.

Compute price and efficiency variances for direct materials and direct manufacturing $1$ abor.