Hello, this is for my managerial accounting class and I would love for it to be done ASAP! Thank you so much!!

Larcker Variance Case Larcker Inc. manufactures a single product, DLZ. Larcker uses budgets and standards in its planning and control functions. Larcker makes use of its standards in order to derive their budgeted cost per unit. For example, Exhibit A provides information on the budgeted variable costs per unit. When determining direct material costs for the planning budget income statement, the $12 budgeted material cost per unit of DLZ would be used in the calculation. Exhibit A Budgeted (Standard) Variable Costs Per Unit of DLZ Raw material: 3 pounds at $4 per pound $12 Direct labor: 1 direct labor hour at $9 per hour 9 Variable overhead: 1 direct labor hour at $11 per hour 11 Total variable budgeted (standard) cost per DLZ $32 __________________________________________________________________ The standards for fixed manufacturing overhead costs are: 1 direct labor hour at $8 per hour. The standard fixed manufacturing overhead cost per hour is calculated based on a denominator level of activity of 40,000 direct labor hours. The planning budget income statement is based on the expectation of selling 40,000 units of DLZ. The budgeted sales price is $56 per unit, and total budgeted fixed selling and administrative costs are $140,000. There are no variable selling and administrative costs in this firm. The company actually produced and sold 45,000 units this year. The company never has a beginning or ending raw materials inventory, because it uses all raw materials purchased. Also, the company never has a beginning or ending finished goods inventory. Everything produced in the year is sold in that same year. The actual income statement for the year is provided in Exhibit B. Exhibit B _______________________________________________________________ Larcker Inc. Actual Income Statement Sales: 45,000 units produced and sold at $55 Less Variable Costs: Direct materials (150,000 pounds at $3.5 per pound) Direct labor (48,000 direct labor hours at $9.5/hr.) Variable manufacturing overhead Contribution margin Less Fixed Costs: Fixed manufacturing overhead costs Fixed selling and administrative costs Net operating income $2,475,000 525,000 456,000 490,000 1,004,000 $ 310,000 160,000 534,000 Required: 1. Could you explain to your boss why the company should use the flexible budget income statement in the variance analysis? Your explanation should not be more than 1/2 page double spaced with a 12 font size. (15 points) 1 2. Prepare a detailed income statement variance analysis using the contribution approach income statement (i.e., variable costing basis) for the year (i.e., compare the actual income statement with the flexible budget income statement and compare the flexible budget income statement with the planning budget income statement). Show all the revenue, spending, and activity variances appearing in the income statement analysis. A template for answering this question is given below. All variances should be marked with either an \"F\" for favorable or \"U\" for unfavorable. (35 points) Larcker Variance Case Solution Template Sales Less V.C. DM DL V-OH CM Less FC Manufacturing Sell & Admin NOI Actual Results $$$ Revenue & Spending Variances $$$ Flexible Budget $$$ Activity Variances $$$ Planning Budget $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ $$$ 3. Prepare a very detailed manufacturing cost variance analysis (e.g., calculate the material price variance and quantity variance; the labor rate variance and efficiency variance; the variable overhead rate variance and efficiency variance; and the fixed manufacturing overhead budget variance and volume variance). All variances should be marked with either an \"F\" for favorable or \"U\" for unfavorable. Show your calculations. (40 points) 4. Could you reconcile spending variances in Part 2 with manufacturing cost variances in Part 3? In other words, for each category of manufacturing costs, show the relationship between the variances in Part 2 with those in Part 3. Excluding your quantitative analysis if any, your explanation should not be more than 1/3 page double spaced with a 12 font size. (10 2 points) 3