Hoffman Company decided to prepare a flexible budget using the following data a) Sales price $50 per unit b) Direct Materials $10 per unit c) Direct labor $20 per unit d) Variable Overhead $5 per unit e) Fixed Overhead $100,000 Prepare a flexible budget using the numbers listed above for 20,000, 30,000, and 40,000 units Make sure your budget includes Contribution margin and Net Income Hoffman Company sold 30,000 units Here are their actual numbers Determine how much each actual number differs from the numbers budgeted for sales of 30000 Indicate whether the difference is favorable or unfavorable Sales $1,500,000 Direct Materials $600,000 Direct Labor $450,000 Variable Overhead $140000 Fixed Overhead $105,000 At a sales level of $30,000 units the budgeted data for materials is as follows 100,000 units at $3 each The actual data was 200,000 units used at a price of $3 each Compute the Materials Price Variance Compute the Materials Quantity Variance At a sales level of 30,000 the budget data for labor is as follows 40000 hours at $15 an hour The actual data was 40000 hours at $11 25 an hour Compute the Labor Rate Variance Compute the Labor Efficiency Variance What do you think could have caused the Direct Materials amount to be so high List as many reasons as you can For each reason listed, tell what the company can do to correct the situation Use complete sentences and good grammar Ending Finished Goods Inventory was supposed to be $200,000 It was actually $50,000 What could have caused inventory to be so low What could be done to correct the situation List as many reasons as you can Use complete sentences and good grammar 1) Hoffman Company decided to prepare a flexible budget using the following data a) Sales price $50 per unit b) Direct Materials $10 per unit c) Direct labor $20 per unit d) Variable Overhead $5 per unit e) Fixed Overhead $100,000 Prepare a flexible budget using the numbers listed above for 20,000, 30,000, and 40,000 units Make sure your budget includes Contribution margin and Net Income 2) Hoffman Company sold 30,000 units Here are their actual numbers Determine how much each actual number differs from the numbers budgeted for sales of 30000 Indicate whether the difference is favorable or unfavorable a) Sales $1,500,000 b) Direct Materials $600,000 c) Direct Labor $450,000 d) Variable Overhead $140000 e) Fixed Overhead $105,000 At a sales level of $30,000 units the budgeted data for materials is as follows 100,000 units at $3 each The actual data was 200,000 units used at a price of $3 each a) Compute the Materials Price Variance b) Compute the Materials Quantity Variance 3) At a sales level of 30,000 the budget data for labor is as follows 40000 hours at $15 an hour The actual data was 40000 hours at $11 25 an hour A) Compute the Labor Rate Variance B) Compute the Labor Efficiency Variance 4) 5) What do you think could have caused the Direct Materials amount to be so high List as many reasons as you can For each reason listed, tell what the company can do to correct the situation Use complete sentences and good grammar Ending Finished Goods Inventory was supposed to be $200,000 It was actually $50,000 What could have caused inventory to be so low What could be done to correct the situation List as many reasons as you can Use complete sentences and good grammar 6)

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Hoffman Company decided to prepare a flexible budget using the following data: a) Sales price-$50 per unit b) Direct Materials -$10 per unit c) Direct

Hoffman Company decided to prepare a flexible budget using the following data:

a) Sales price-$50 per unit

b) Direct Materials -$10 per unit

c) Direct labor-$20 per unit

d) Variable Overhead-$5 per unit

e) Fixed Overhead $100,000

Prepare a flexible budget using the numbers listed above for 20,000, 30,000, and 40,000 units. Make sure your budget includes Contribution margin and Net Income.

Hoffman Company sold 30,000 units. Here are their actual numbers. Determine how much each actual number differs from the numbers budgeted for sales of 30000. Indicate whether the difference is favorable or unfavorable.

Sales $1,500,000
Direct Materials -$600,000
Direct Labor-$450,000
Variable Overhead-$140000
Fixed Overhead -$105,000

At a sales level of $30,000 units the budgeted data for materials is as follows: 100,000 units at $3 each. The actual data was 200,000 units used at a price of $3 each.

Compute the Materials Price Variance
Compute the Materials Quantity Variance

At a sales level of 30,000 the budget data for labor is as follows: 40000 hours at $15 an hour. The actual data was 40000 hours at $11.25 an hour.

Compute the Labor Rate Variance.
Compute the Labor Efficiency Variance.

What do you think could have caused the Direct Materials amount to be so high? List as many reasons as you can. For each reason listed, tell what the company can do to correct the situation. Use complete sentences and good grammar.

Ending Finished Goods Inventory was supposed to be $200,000. It was actually $50,000. What could have caused inventory to be so low? What could be done to correct the situation? List as many reasons as you can. Use complete sentences and good grammar.

1) Hoffman Company decided to prepare a flexible budget using the following data a) Sales price-$50 per unit b) Direct Materials -$10 per unit c) Direct labor-$20 per unit d) Variable Overhead-$5 per unit e) Fixed Overhead $100,000 Prepare a flexible budget using the numbers listed above for 20,000, 30,000, and 40,000 units. Make sure your budget includes Contribution margin and Net Income 2) Hoffman Company sold 30,000 units. Here are their actual numbers. Determine how much each actual number differs from the numbers budgeted for sales of 30000. Indicate whether the difference is favorable or unfavorable. a) Sales $1,500,000 b) Direct Materials -$600,000 c) Direct Labor-$450,000 d) Variable Overhead-$140000 e) Fixed Overhead -$105,000 At a sales level of $30,000 units the budgeted data for materials is as follows: 100,000 units at $3 each. The actual data was 200,000 units used at a price of $3 each. a) Compute the Materials Price Variance b) Compute the Materials Quantity Variance 3) At a sales level of 30,000 the budget data for labor is as follows: 40000 hours at $15 an hour. The actual data was 40000 hours at $11.25 an hour A) Compute the Labor Rate Variance B) Compute the Labor Efficiency Variance 4) 5) What do you think could have caused the Direct Materials amount to be so high? List as many reasons as you can. For each reason listed, tell what the company can do to correct the situation. Use complete sentences and good grammar Ending Finished Goods Inventory was supposed to be $200,000. It was actually $50,000. What could have caused inventory to be so low? What could be done to correct the situation? List as many reasons as you can. Use complete sentences and good grammar 6)