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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

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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 310 cases off the production line before the end of the month. But as she glanced over the rest of numbersLexi 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 Actual Budget 10,300 9.990 Cases produced and sold Sales revenue Less variable expenses Variance 310 Favorable $101,700 Favorable $2,081,700 $1,980,000 Direct material 593,300 576,600 16,700 Unfavorable Direct labor 289,600 278,000 11.600 Unfavorable Variable manufacturing overhead 249.500 247,800 1.700 Unfavorable Variableselling expenses 113.100 111.200 1.900 Unfavorable 113,100 111,200 1.900 Unfavorable 43,300 42,600 700 Unfavorable 1,288,800 1,256,200 32,600 Unfavorable 69.100 Favorable 792.900 723,800 Variable selling expenses Variable administrative expenses Total variable expense Contribution margin Less fixed expenses Fixed manufacturing overhead Fixed selling expenses Fixed administrative expenses 126,000 130,100 4.100 Favorable 85,800 85,500 300 Unfavorable 148,000 146,500 1,500 Unfavorable Totalfixed expense 359,800 362,100 (2.300) Favorable Operating income $433,100 $361.700 $71,400 Favorable 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," tevin replied. Irvin gathered the following additional information about the month's performance . . Direct materials purchased: 55.100 pounds at a total of 5655,690 Direct materials used: 51.400 pounds Direct labor hours worked: 23.160 at a total cost of $270,678 . . Machine hours used: 52,000 Irvin also found the standard cost card for a case of product. Standard Price Standard Quantity Standard Cost $59.50 Direct materials $11.90 per pound $11.80 per DLH $4.85 per MH 5.00 pounds 2.20 DLH Direct labor 25.96 Variable overhead 5 MH 24.25 Fixed overhead $2.20 per MH 5 MH 11.00 $120.71 Total standard cost per case (a-b) Calculate the direct material price variance and direct material quantity variance for the month. (lf variance is zero, select "Not Applicable" and enter for the amounts.) Direct material price variance s Direct material quantity variance (c-d) Calculate the direct labor rate variance and direct labor efficiency variance for the month. (Round answers to decimal places, es. 1,525. If variance is zero, select "Not Applicable and enter for the amounts.) Direct labor rate variance S 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 for the amounts.) $ Variable overhead spending variance $ Variable overhead efficiency variance (e) Calculate the fixed overhead spending variance for the month. (If variance is zero, select "Not Applicable and enter for the amounts.) $ Fixed overhead spending variance

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