Here is the question and data, using the data for finishing the template. Fill in the ? on the excel.
Variance Summary: Favorable (Unfavorable) Static Budget 4,500 B Operating Statements (Std Cost Sys) ? Write off Cntrl Acct Bal (Variances) D Actual Revenues and Costs 7,200 Flexible Budget Sales Volume Variance Sales Volume (in units) Sales Revenue Flexible Budget Variance Sales Price Variance 1,350,000 0 2,340,000 Cost of Goods Sold Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 315,000 405,000 202,500 125,000 1,047,500 486,000 748,800 374,400 135,000 1,744,200 Variable Cost FB Variances Material Price Hint - production volume Usage variance will impact this cell Labor Rate Efficiency VMOH Rate Efficiency VS&A 000 Total ? ? Gross Profit 302,500 595,800 o Selling and Administration Commissions Other Total 67,500 22,500 90,000 o Fixed Cost Spending Variances FMOH Spending This difference will bridge FS&A Spending column B (Operating) to D (Actual) 106,000 24,000 130.000 212,500 ? 68,200 Operating income before tax Total Cash Variance 465,800 253,300 253,300 Static Budget Variance Non-cash Variance FMOH Production Volume (denominator) Level 0 variance analysis Control Accounts Reconciliation of Control Accounts Variable Fixed Balance Production DR (CR) Price Efficiency Spending Volume DR (Actual) CR (Applied) Fav (Unfav) Material Labor VM O/H FM O/H 68,200 00 (68,200) Budgeted and Actual Input Data [DO NOT CHANGE THE FORMAT] Forecast Information Actual Results Sales Volume (units) 4,500 Sales Volume (units) 7,200 Sales Price per unit 300.00 Sales Revenue 2,340,000 Standard Costs Materials Kilograms per output unit Cost per kilogram 70.0 1.00 Materials Kilograms used Total cost of materials 540,000 486,000 Labor Labor Hours per output unit Cost per hour 6.0 Hours used Total cost of labor 46,800 748,800 15.00 Variable overhead Cost per labor hour Variable overhead Total incurred 7.50 374,400 Sales commission rate per unit 15.00 Sales commissions 106,000 Contribution Margin per unit Fixed overhead Manufacturing Selling and administration 125,000 22,500 Fixed overhead Manufacturing Selling and administration 135,000 24,000 FFOH Burden rate per labor hour Variance Summary: Favorable (Unfavorable) Static Budget 4,500 B Operating Statements (Std Cost Sys) ? Write off Cntrl Acct Bal (Variances) D Actual Revenues and Costs 7,200 Flexible Budget Sales Volume Variance Sales Volume (in units) Sales Revenue Flexible Budget Variance Sales Price Variance 1,350,000 0 2,340,000 Cost of Goods Sold Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 315,000 405,000 202,500 125,000 1,047,500 486,000 748,800 374,400 135,000 1,744,200 Variable Cost FB Variances Material Price Hint - production volume Usage variance will impact this cell Labor Rate Efficiency VMOH Rate Efficiency VS&A 000 Total ? ? Gross Profit 302,500 595,800 o Selling and Administration Commissions Other Total 67,500 22,500 90,000 o Fixed Cost Spending Variances FMOH Spending This difference will bridge FS&A Spending column B (Operating) to D (Actual) 106,000 24,000 130.000 212,500 ? 68,200 Operating income before tax Total Cash Variance 465,800 253,300 253,300 Static Budget Variance Non-cash Variance FMOH Production Volume (denominator) Level 0 variance analysis Control Accounts Reconciliation of Control Accounts Variable Fixed Balance Production DR (CR) Price Efficiency Spending Volume DR (Actual) CR (Applied) Fav (Unfav) Material Labor VM O/H FM O/H 68,200 00 (68,200) Budgeted and Actual Input Data [DO NOT CHANGE THE FORMAT] Forecast Information Actual Results Sales Volume (units) 4,500 Sales Volume (units) 7,200 Sales Price per unit 300.00 Sales Revenue 2,340,000 Standard Costs Materials Kilograms per output unit Cost per kilogram 70.0 1.00 Materials Kilograms used Total cost of materials 540,000 486,000 Labor Labor Hours per output unit Cost per hour 6.0 Hours used Total cost of labor 46,800 748,800 15.00 Variable overhead Cost per labor hour Variable overhead Total incurred 7.50 374,400 Sales commission rate per unit 15.00 Sales commissions 106,000 Contribution Margin per unit Fixed overhead Manufacturing Selling and administration 125,000 22,500 Fixed overhead Manufacturing Selling and administration 135,000 24,000 FFOH Burden rate per labor hour
