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 couldri't help but wonder if there were errors in some of the line items. She was puzzled at how most of the cperating 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 Actual Budget Variance Cases produced and sold Sales revenue Less variable expenses 10,250 260 Favorable $1,945,600 1,969,100 77,500 Favorable Direct material Direct labor Varlable manufacturing overhead Variable seling expenses Variable administrative expenses 10,989 Unfavorable 7,642 Unfavarable 5,007 Unfavorable 3,127 Unfavorable 1,730 Unfavorable 28,503 Unfavorable 267,387 284,727 93,037 4,45D 259,740 279,720 Total variable expense Contribution margin Less fixed expenses 1,218,780 48,007 Favorable 608,31764. Fixed manufacturing overheacd Fixed selling expenses Fixed adninistrative expenses 999 Unfavorable (499 Favorable) (200 Favorable) 109,890 69,431 129,870 Total fixed expense Operating income 388,327 $48,697 Favorable ersion 4.24. Led picked up the phone and ca e in 'h in t dont get it we beat the budgeted n era ng income for the month but k at all the unfavorahie variano s an the npe ating sts. Can you hap me unde stand hate cin et me look in to it and TI et back to you, Irvin repliad. Irvin gathered the fellowing additional information about the month's performance. .Direct materials purchased: 101,898 pounds at a total of $550,439 .Direct materials used: 101,393 pounds . Direct labor hours worked: 26,474 at a total cost of $267,382 . Machine hours used: 40,909 Irvin also found the standard cost card for a case of product. Standard Cost Direct materials Direct labor Varlable overhead Fixed averhead Total standard Standard Price $5.50 per pound $10 per DLH $7 per MH $2.75 per MH Standard Quantity 10 pounds 2.60 DLH 4 MH 4 MH 26.00 28.00 cost per case (a-b) Calculate t the direct material price variance and direct material quantity variance for the month. (If variance is zero, select "Not Applicable and enter 0 for te amounts.) Direct material price variance nment Total standard cost per case $120.00 a-b Calculate the direct material price variance and direct material quantity variance for the month. ( variance is zero, select "Not App cable 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 effilclency variance for the month. (Round answers to O decimal places, e.g. 1,525. If varlance is zero, select "Not Applicable" and enter 0 for the amounts.) Direct labor rate variance Direct labor efficiency variance $ (e-f) Calculate the variable overhead spending varlance and variable overhead efficiency varlance for the month. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Variable overhead spending variance Variable overhead efficiency variance (g) Calculate the fixed overhead spending variance for the month. (If varlance is zero, select "Not Applicable" and enter o for the amounts.) Fixed overhead spending variance CALCULATOR PRINTER VERSION BACK Prepare a performance report that will assist Lexi in evaluating her efforts to control production costs. (I variance is zero, select "Not Applicable" and enter 0 for the amounts.) Price/Rate/Spending Variance Quantity/Efficiency Variance Direct materials Direct labor Variable overhead Fixed overhead Total Based on your review of the performance report you prepared, do you think Lexi did a good job of controlling production expenses during the month? Click if you would like to Show Work for this question: gRen Show Work Question Attempls: Unlimited SAVE FOR LATER SUUHIT