Hello I was wondeirng if someone could please help me complete this problem. I had received help but the person who helped me was unable to complete the problem. Along with the below I have attached the original problem and the solution that I was previously helped with. If you could please provide explanations for calculations it would be appreciated. The setup on the solution excel sheet are the formates I am required to use, although if another formate is better for the income statement I am allowed to use it.

Thank you!

Case 6:

SmartSound manufactures headphone cases. During September 2017, the company produced and sold 105,000 cases and recorded the following cost data:

Requirements

1.Compute the price and efficiency variances for direct materials and direct labor.

2.For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance.

3.Prepare a standard cost income statement through gross profit to report all variances to management. The sale price of the headset cases was $1.50 each.

4.Have SmartSound?s managers done a good job or a poor job controlling materials and labor costs? Why?

5.SmartSound?s management used more-experienced workers during September. Discuss the trade-off between the two direct labor variances.

Case 6: SmartSound manufactures headphone cases. During September 2017, the company produced and sold 105,000 cases and recorded the following cost data: Requirements 1. Compute the price and efficiency variances for direct materials and direct labor. 2. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. 3. Prepare a standard cost income statement through gross profit to report all variances to management. The sale price of the headset cases was $1.50 each. 4. Have SmartSound's managers done a good job or a poor job controlling materials and labor costs? Why? 5. SmartSound's management used more-experienced workers during September. Discuss the trade-off between the two direct labor variances. 1) Price and Efficiency Variances for Direct Materia Actual Price Variance Direct Materials 47,000 (235,000*.20) (11,750) U Direct Labor 15,555 (1,700 hrs * 9.15) (255) U Flexable Budget Variance for Direct Materials Flexable Budget Variance for Direct Labor = (15,500) = 3,345 Flexable Budget Variance = (12,155) U Manufacturing overhead, Total variance 2) Actual Variable Manufacturing Overhead Spending variance 32500 Spending and Flex bud variance Actual Fixed Manufacturing Overhead 0 28500 0 3) Standard Cost Income Statement Smartsound Standard Cost Income Statement Month Ended September 30, 2017 Sales revenue (units @ $) Cost of goods sold at standard cost (units x $) Manufacturing cost variances: Direct materials price variance Direct materials efficiency variance Direct labor price variance Direct labor efficiency variance Overhead flexible budget variance Production volume variance Total manufacturing cost variances Cost of goods sold at actual cost (5+13) Gross profit Show unfavorable variances as negatives 4) 5) $157,500 798,006 $xxx $xxx $xxx $xxx $xxx $xxx $xxx $xxx $xxx y Variances for Direct Materials and Direct Labor Actual quantity of Efficiency DM X Budget Price Variance Flex Budget 35,250 (235,000*.15) 3,750 F 31,500 (210,000*.15) (210,000 = 105,000 number of cases produced * 2 parts) 15,300 (1,700 * 9.00) 3,600 F 18,900 (2,100* 9.00) (2,100 = 105,000*.02) Variance = (12,155) U For material and labor total overhead, Total variance, Flexible budget variance, and Production volume variance Actual quantity x Efficiency budget price variance 15300 Flexable budget 3600 Production Flex bud (same as volume static budget) variance 8500 15300 Actual qty x budget price = 105,000 number of cases produced * 2 parts) 05,000*.02) ial and labor total me variance