Hi there,

I am seeking for someone to correctly answer the following 2 problems within the Excel file I have attached. In addition to simply answering the 2 problems, the criteria requires cell referencing in answering the problems. This is due by Friday, 11/20, at noon.

Thanks!

Problem 1 covers material from chapters 10 and 11. Gourmet, Inc. produces containers of frozen food. During October the company had the following actual production and costs. Actual Containers produced in October 725 Variable Overhead $5,500 Fixed Overhead $14,000 Direct Labor cost $75,600 Which is 4,000 Direct labor hours Actual material purchased $33,000 Which is 15,000 pounds Actual Material pounds used 14,900 pounds Overhead is budgeted and applied using direct-labor hours. Standard cost and annual budget information are as follows: Direct Labor Direct Material Variable overhead Fixed Overhead Total Standard cost per container 5 hours at 20 pounds at $18 $2 $90 $40 Direct labor 5 hours at $1.50 $7.50 Direct labor 5 hours at $3 $15 $152.50 Annual Budget Information Variable Overhead Fixed Overhead Planned activity for year Grading Rubric Each Variance calculation worth Each U or F designation $75,000 $150,000 50,000 Direct-labor hours 0.75 pts. 0.25 pts. 1 pt. each for variance Comments 0.5 Total pts. Possible 8.5 pts. Required: Make sure you do not forget to label the variances U or F. You need to show your work either by cell reference or showing your calculation to the side. 1. Calculate the direct materials price and quantity variance. Direct-material purchase price variance should be based on material purchased, since you want to isolate the variance as soon as possible. See bottom page 418 Direct-material Quantity variance should be based on materials used, since this is monitoring the production efficiency. See top of page 418. Direct-material purchase price variance Direct-material Quantity variance 2. Calculate the direct labor rate and efficiency variances. Direct-labor rate variance Direct-labor Efficiency variance 3. Variable manufacturing overhead spending and efficiency variances. Variable overhead spending variance Variable overhead efficiency variance 4. Fixed manufacturing overhead spending and volume variances. Fixed Manufacturing overhead spending variance Fixed overhead volume variance 5. Pick out the two variances that you computed above that you think should be further investigated. Explain why you picked these 2 variances and what might be the possible cause of the variances. Problem 2 Worth 6.5 pts. Grading Rubric: Each number in revised cost control report U or F variance designation Comments each for #2 and #3 0.2 pt. each 0.25 pt. each 0.5 Total points possible 6.5 Crafts Inc., is a manufacturer of furniture. The company has 4 product lines. The manager of the table segment received the following performance report for October from the CEO. The CEO contacted the Table Segment Manager and stated that they needed to meet , so that they could discuss getting this segment back on track. Units Variable Production costs: Direct material Direct labor Machine time Production overhead Fixed Production costs: Indirect labor Depreciation Property taxes Insurance Total costs Table Segment Performance Report For the month of October Actual Budget Variance 3,000 2,800 200 F $ $ 60,000 $ 44,000 54,500 100,000 61,600 $ 44,800 50,400 105,000 1,600 F 800 F 4100 U 5000 F 28,200 16,500 7,200 13,500 323,900 $ 23,000 ### 6,900 ### 321,700 $ 5200 U 0 300 U 0 2,200 U The Table segment manager heard you just finished a course that discussed flexible budgets. He has asked you to assist him in developing a performance report that compares actual numbers to a flexible budget at actual level. 1. Prepare a new performance report for October using the flexible performance approach. The variable and fixed cost labeling has been set correctly, so do not change this around. You need to designate the variances as U or F. 2. Comment on how you developed this revised report and what it means. 3. Do you think any of the variances in the report you prepared should be investigated? Why? Solution: You need to show your work either by cell reference or showing your calculation to the side. #1 Revised Table Segment Performance Report For the month of October Flexible Actual Budget Variance U or F Units Variable Production costs: Direct material Direct labor Machine time Production overhead Fixed Production costs: Indirect labor Depreciation Property taxes Insurance Total Cost 2. Comment on how you developed this revised report and what it means. 3. Do you think any of the variances in the report you prepared should be investigated? Why