Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottom line of the report and saw the favorable variance for operating income, confirming her decision to push the workers to get those last 250 cases off the production line before the end of the month. But as she glanced over the rest of numbers, Lexi couldn't help but wonder if there were errors in some of the line items. She was puzzled at how most of the operating expenses could be higher than the budget since she had worked hard to manage the production line to improve efficiency and reduce costs. Yet the report, shown below, showed a different story. Cases produced and sold Sales revenue Actual 10.250 $1.947.500 Budget 10,000 51.870,000 5.77.500 F t 550,000 20.000 561,000 267,650 285,012 93.130 41,740 1.248.532 698.968 90.000 3.130 Direct materia Director Variable manufacturing overhead V iew expenses Variable administrative expenses Total variable expense Contribution margin Les fed expenses Fixed manufacturing overhead Fixed sling expenses Fixed administrative expenses Toledo Operating income 282532 1.220,000 650.000 11L000 110,000 130,000 (500 Favor ) 200 Ft) 300 W SGB Fevere $340,000 Lexi picked up the phone and called Irvin. "Irvin, I don't get it. We beat the budgeted operating income for the month, but look at all the unfavorable variances on the operating costs. Can you help me understand what's going on?" "Let me look into it and I'll get back to you," Irvin replied. Irvin gathered the following additional information about the month's performance. Direct m u ch 102.000 pounds of 5561.000 Directe d : 102.000 pounds Directors : 2.0 cost of $257.550 Machinehouse 0.950 Irvin also found the standard cost card for a case of product. Standard Standard Price 55.50 per pound $10 per DH Standard Quantity 10 pounds 25D Direct materia Director Variatie overhead Fued overhead Totaandard cost percase 12.75 per H 4 $120 (a-b) Calculate the direct material price variance and direct material quantity variance for the month. (If variance is zero, select "Not Applicable" and enter o for the amounts.) Direct material price variance $ Direct material quantity variance $ (c-d) Calculate the direct labor rate variance and direct labor efficiency variance for the month. (Round answers to 0 decimal places, e.g. 1,525. If variance is zero, select "Not Applicable" and enter o for the amounts.) Direct labor rate variance Direct labor efficiency variance $ (e-f) Calculate the variable overhead spending variance and variable overhead efficiency variance for the month. (If variance is zero, select "Not Applicable" and enter o for the amounts.) Variable overhead spending variance $ Variable overhead efficiency variance $ (g) Calculate the fixed overhead spending variance for the month. (If variance is zero, select "Not Applicable" and enter o for the amounts.) Fixed overhead spending variance $
