How do you calculate the proper total, X, of the variance analysis below?
| Acrylic pile fabric | | | Actual | | Std. Price @ Actual Input | | Flexible Budget | | Static Budget | | SP | $ 36.00 |
| | Price | $ 34.56 | | $ 36.00 | | $ 36.00 | | $ 36.00 | Price | SI | 0.02673 |
| | Input | 0.02518 | | 0.02518 | | 0.02673 | | 0.02673 | Input | SO | 295000 |
| | Output | 331400 | | 331400 | | 331400 | | 295000 | Output | AP | $ 34.56 |
| | Total | $ x | | $x | | $x | | $x | Total | AI | 0.02518 |
| | | | $ 12,016.30 | F | $ 18,492.12 | Flexible Budget | $(35,026.99) | U | | AO | 331400 |
| | | | Spending Var | Efficiency Var | | Activity Var | | | | |
| | | | | | | | | | | | |
Acrylic pile fabric Actual Std. Price @ Actual Input Flexible Budget Static Budget SP $ 36.00 Price 34.56 $ 36.00 $ 36.00 $ 36.00 Price SI 0.02673 Input 0.02518 0.02518 0.02673 0.02673 Input SO 295000 Output 331400 331400 331400 295000 Output AP $ 34.56 Total $ 288,391.17 $ 300,407.47 $ 318,899.59 $ 283,872.60 Total Al 0.02518 $ 12,016.30 F $ 18,492.12 Flexible Budget $(35,026.99) U AO 331400 Spending Var Efficiency Var Activity VarExhibit 1 - Summary of Actuals and Master Budget Actual Master Budget Units sold (# of bears) 331,400 295,000 Revenue Retail $ 10,389,390 $ 12,040,000 Wholesale 1,888,980 2,960,000 Amazon 4,546,808 - Total revenue 16,825,178 15,000,000 Direct materials Actrylic pile fabric 288,403 283,873 Acrylic eyes 139,282 123,900 Plastic joints 288,035 221,250 Polyester fiber filling 534,788 427,455 Label 19,707 17,700 Designer box 66,329 76,700 Accessories 62,538 41,300 Total Materials 1,399,082 1,192,178 Direct labor 4,305,881 3,292,200 Variable manufacturing overhead 1,979,441 1,235,460 Fixed manufacutring overhead 767,228 746,940 Variable selling expenses 1,879,779 1,405,500 Fixed selling expenses 5,865,815 5,146,500 Administrative expenses 1,184,801 1,190,000 Operating profit $ (556,850) S 791,222 Note: The above actual operating income does not include the bonuses paid to management, Exhibit 2 - Sales by Channel Actual Units Unit Price Total Sales ($) Retail 188,898 55.00 10,389,390 Wholesale 49,710 38.00 1,888,980 Amazon 92,792 49.00 4,546,808 331,400 16,825,178 Budget Retail 215,000 56.00 12,040,000 Wholesale 80,000 37.00 2,960,000 295,000 15,000,000 10Exhibit 3 - Standard Cost Information Input Units Input Price Standard cost Direct materials Quantity Units Dollars Per Input Unit S per bear Actrylic pile fabric 0.02673 bolts 36 bolt 0.9623 Acrylic eyes 2.00 eyes 0.21 eye 0.4200 Plastic joints 5.00 joints 0.15 joint 0.7500 Polyester fiber filling 0.90000 pound 1.61 .4490 Label 1.00 label 0.06 label 0.060 Designer box 1.00 box 0.26 box 0.2600 Accessories 1.00 various 0.14 each 0.1400 Total Materials 4.0413 Direct labor Hours Units Dollars Per Input Unit $ per bear Sewing 0.5 hours 9.3 hour 4.65 Cutting and stuffing 0.3 hours 9.3 hour 2.79 Assembly 0.3 hours 9.30 hou 2.79 Dressing and packaging 01 hours 9.30 hour 0.93 Total Labor 1.2 hours 9.30 hour 11.1600 Variable manufactring overhead 1.20 DL hours 3.4900 DL hour 4.1880 Fixed manufacturing overnead 1.20 DL hours 2.1100 DL hour 2.5320 Notes: Normal expected production and sales is 295,000 units The cost of accessories ranges depending on the accessory type (from $0.07 to $0.41). A standard is used to reflect all accessories given their low cost. Variable and fixed overhead costs are allocated to bears based on the standard direct labor costs allowed. Standards are computed at the normal production level of 295,000 bears. Maximum capacity is 350,000 units. 11Exhibit 4 - Actual Costs Quantig Used Input Price Total Cost Direct materials Quantity Units Dollars Per Input Unit Total Actrylic pile fabric 8,345 bolts 34.5600 bolt 288,403 Acrylic eyes 663,248 eyes 0.2100 eye 139,282 Plastic joints 1,937,023 joints 0.1487 joint 288,035 Polyester fiber filling 354,164 pounds 1.5100 pound 534,788 Label 328,447 labels 0.0600 label 19,707 Designer box 315,854 boxes 0.2100 box 66,329 Accessories 330,190 various 0.1894 each 62,538 Total Materials 1,399,082 Direct labor Hours Units Dollars Per Input Unit Total Sewing 189,211 hours 959 hour 1,814,533 Cutting and stuffing 104,117 hours 959 hour 998,482 Assembly 121,054 hours 9.59 hour 1,160,908 Dressing and packaging 34,615 hours 9.59 hour 331,958 Total Labor 448,997 hours 9.59 hour 4,305,881 Variable manufacturing overhead 1,979,441 Fixed manufacturing overhead 767,228 Exhibit 5 - Selling Expenses Units Sold {# of bears) Variable Selling Expenses {5) Packing and shipping Commissions Marketing materials Total variable selling exp Fixed Selling Expenses (5) Salaries Advertising and promotion Total fixed selling exp Actual 331,400 1,589,900 125,789 164,090 1,879,779 3,274,871 2,590,944 5,865,815 Budget 295,000 1,080,214 249,330 75,956 1,405,500 2,705,999 2,440,501 5,146,500 13
