Exercise 9-1 Prepare a Flexible Budget [LO9-1] Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (9) 250 $105,000 Revenue ($420.009) Expenses: Wages and salaries ($11,100 + $130.089) Supplies (53.889) Equipment rental ($2,300 + $25.009) Insurance ($3,900) Miscellaneous (5530 + $1.449) Total expense Net operating income 43,600 750 8,550 3,900 890 57,690 $ 47,310 During May, the company's actual activity was 240 diving hours Required: Prepare a flexible budget for May (Round your answers to the nearest whole dollar.) Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense 0 Net operating income $ 0 Exercise 9-2 Prepare a Report Showing Revenue and Spending Variances (L09-2] Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7100 pounds of oysters in August The company's flexible budget for August appears below Qullcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (9) 7,100 $ 29,465 Revenue (54.159) Expenses: Packing Supplies (50.359) Oyster bed maintenance ($3,100) Wages and salaries (52,400 + $0.359) Shipping ($0.759) Utilities ($1,210) Other (5438 + 50.019) Total expense Net operating income 2,485 3,100 4.885 5,325 1,210 501 17.506 $ 11,959 The actual results for August appear below Qullcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,100 $ 27100 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 2,655 2,960 5,295 5,055 1,020 1,121 18,186 $ 8,994 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income Exercise 9-4 Direct Materials Variances (LO9-4] Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,800 helmets. using 2,584 kilograms of plastic. The plastic cost the company $19,638 According to the standard cost card, each helmet should require 0.63 kilograms of plastic, at a cost of $8.00 per kilogram Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,800 helmets? 2. What is the standard materials cost allowed (SQ SP) to make 3,800 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effectie., zero variance). Input all amounts os positive values. Do not round intermediate calculations.) 1 2 3 Standard quantity of kilograms allowed Standard cost allowed for actual output Materials spending variance Materials price variance Materials quantity variance Exercise 9-5 Direct Labor Variances (LO9-5] SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 7,200 of these meals using 2,800 direct labor-hours. The company paid its direct labor workers a total of $22,400 for this work, or $8.00 per hour. According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $7.50 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 7.200 meals? 2. What is the standard labor cost allowed (SHSR) to prepare 7,200 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1 2 3 4 Standard labor hours allowed Standard labor cost allowed Labor spending variance Laborrate variance Labor efficiency variance Exercise 9-6 Variable Overhead Variances (LO9-6] Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours In the most recent month. 160.000 items were shipped to customers using 6,500 direct labor-hours. The company incurred a total of $20,800 in variable overhead costs According to the company's standards, 0.03 direct labor-hours are required to fulfill an order for one Item and the variable overhead rate is $3.25 per direct labor-hour Required: 1. What is the standard labor hours allowed (SH) to ship 150.000 items to customers? 2. What is the standard variable overhead cost allowed (SH SR) to ship 160,000 items to customers? 3. What is the variable overhead spending variance? 4. What is the variable overhead rate variance and the variable overhead efficiency variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (i... zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard quantity of labor hours allowed 2 Standard variable overhead cost allowed 3. Variable overhead spending variance 4. Variable overhead rate variance Variable overhead officiency variance