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: Units to be produced and sold 25,000 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 Direct labor Variable overhead Fixed overhead 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 b. Direct labor rate variance S 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 Enter these transactions in the T-accounts in the same order that they are presented here. Materials Work in Process Finished Goods Direct Materials Price Variance Direct Materials Usage Variance Accounts Payable Wages Payable Direct Labor Rate Variance Direct Labor Efficiency Variance Direct Labor Efficiency Variance Variable Overhead Control Fixed Overhead Control Cost of Goods Sold 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: Units to be produced and sold 25,000 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 Direct labor Variable overhead Fixed overhead 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 b. Direct labor rate variance S 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 Enter these transactions in the T-accounts in the same order that they are presented here. Materials Work in Process Finished Goods Direct Materials Price Variance Direct Materials Usage Variance Accounts Payable Wages Payable Direct Labor Rate Variance Direct Labor Efficiency Variance Direct Labor Efficiency Variance Variable Overhead Control Fixed Overhead Control Cost of Goods Sold