DROP DOWN BOX IS EITHER FAVORABLE, UNFAVORABLE, OR NONAPPLICABLE

Flexible Budget, Standard Cost Variances, T-Accounts Ingles Company manufactures external hard drives. At the beginning of the period, the following plans for production and costs were revealed: 25,000 Units to be produced and sold Standard cost per unit: Direct materials $ 10 Direct labor 8 Variable overhead 4 Fixed overhead 3 Total unit cost $ 25 During the year, 24,800 units were produced and sold. The following actual costs were incurred: $263,872 Direct materials Direct labor Variable overhead Fixed overhead 204,352 107,310 73,906 There were no beginning or ending inventories of direct materials. The direct materials price variance was $9,572 unfavorable. In producing the 24,800 units, a total of 12,772 hours were worked, 3 percent more hours than the standard allowed for the actual output. Overhead costs are applied to production using direct labor hours. Required: Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Prepare a performance report comparing expected costs to actual costs. 1. Prepare a performance report comparing expected costs to actual costs. Ingles Company Performance Report Cost Items Actual Costs Budgeted Costs Variance Direction Direct materials 263,872 248,000 15,872 Unfavorable Direct labor 204,352 198,400 5,952 Unfavorable Unfavorable Variable overhead 107,310 99,200 8,110 Fixed overhead 73,906 75,000 1,094 Favorable 649,440 620,600 28,840 Unfavorable 2. Determine the following. If a variance amount is zero, enter "0" and select "Not applicable" from the drop-down list. a. Direct materials usage variance Unfavorable b. Direct labor rate variance o Not applicable c. Direct labor usage variance d. Fixed overhead spending and volume variances Spending variance Volume variance e. Variable overhead spending and efficiency variances Variable overhead spending variance Variable overhead efficiency variance