Exercise 16-30 (Algo) Sales Activity Variance (LO 16-3)

The following data are available for the most recent year of operations for Slacker & Sons. The revenue portion of the sales activity variance is $288,000 F.

Master budget based on actual sales of 161,000 units:
Revenue	$	3,600,000
Materials		861,000
Labor		636,000
Variable manufacturing overhead and administrative costs		136,000
Fixed manufacturing overhead and administrative costs		410,000

Required:

b. Prepare a sales activity variance for the most recent year for Slacker & Sons.

2.

Exercise 16-41 (Algo) (Appendix used in requirement [b]) Variable Cost Variances (LO 16-5, 7)

Information on Grand Corporations direct materials costs follows.

Quantities of chemical Y purchased and used		20,300	gallons
Actual cost of chemical Y used	$	430,500
Standard price per gallon of chemical Y	$	23.60
Standard quantity of chemical Y allowed		18,700	gallons

Grand Corporation has no materials inventories.

Required:

a. What were Grand Corporations direct materials price and efficiency variances? b. (Appendix) Prepare the journal entries to record the purchase and use of chemical Y using standard costing.

Required A Required B Prepare a sales activity variance for the most recent year for Slacker & Sons. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) SLACKER & SONS Sales Activity Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Variable costs: Materials Direct labor Variable manufacturing and administrative Total variable costs $ 0 $ 0 Contribution margin $ 0 $ 0 Fixed costs: Manufacturing overhead and administrative Total fixed costs Operating profits $ $ 0 S View transaction list Journal entry worksheet