M:8 HW

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ProNet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $150 for each connector and fixed costs of $6,000 per month. ProNet's static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 73 connectors at a total cost of $24,000. ProNet's total flexible budget cost for 73 connectors per month is O A. $16,950. O B. $10,950. O C. $15,000. O D. $24,000.Major, Inc. manufactures travel locks. The budgeted selling price is $20 per lock, the variable cost is $6 per lock, and budgeted fixed costs are $21,000 per month. Prepare a flexible budget for output levels of 9,000 locks and 10,000 locks for the month ended April 30, 2024 . . . . . Major, Inc. Flexible Budget For the Month Ended April 30, 2024 Budget Amounts Per Unit Units 9,000 10,000Top managers of White Industries predicted 2024 sales of 14,500 units of its product at a unit price of $8.00. Actual sales for the year were 14,000 units at $9.00 each. Variable costs were budgeted at $2.10 per unit, and actual variable costs were $2.20 per unit. Actual fixed costs of $46,000 exceeded budgeted fixed costs by $4,500. Prepare White's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variances. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) White Industries Flexible Budget Performance Report For the Year Ended December 31, 2024 2 3 4 5 (1) - (3) (3) - (5) Budget Flexible Sales Amounts Actual Budget Flexible Volume Static Per Unit Results Variance Budget Variance Budget Units Sales Revenue Variable Costs Contribution MarginMajorNet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $145 for each connector and xed costs of $7,500 per month. MajorNet's static budget predicted production and sales of 100 connectors in August. but the company actually produced and sold only 84 connectors at a total cost of $21,000. MajorNet Systems' managers could set direct labor standards based on O A continuous improvement. 0 B. benchmarking. O C. time-and-motion studies. 0 D. All of the above. MeiaPro Systems is a start-up company that makes connectors for high-speed Internet connections. MetaPro Systems has budgeted three hours of direct labor per connector, at a standard cost of $13 per hour. During August, technicians actually worked 198 hours completing 80 connectors. All 80 connectors actually produced were sold. MetaPro paid the technicians $13.80 per hour. What is MetaPro's direct labor cost variance for August'? o A. $153.40 0 o B. $387.60 u 0 o. $64.00 u 0 D. $192.00 u X Requirement Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Superior Fender's managers have been making trade-offs? Explain.Superior Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024, using 142,000 square feet of extruded vinyl purchased at $1.45 per square foot. Production required 420 direct labor hours that cost $12.50 per hour. The direct materials standard was seven square feet of vinyl per tender, at a standard cost of $1 .50 per square foot. The labor standard was 0.023 direct labor hour per tender, at a standard cost of $1 1 .50 per hour. Read the- Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; A0 = actual quantity; FOH = xed overhead; $0 = standard cost; so = standard quantity.) Formula Variance Dlrect materlals cost variance = Direct labor cost varlance Data table Direct materials (cloth) 20,200 yards @ $2.10 per yard Direct labor 2,800 hours @ $13.00 per hour Variable overhead $5,300 Fixed overhead 99,000 Data table Direct materials (cloth) 2 yard(s) per book bag @ $2.10 per yard Direct labor 0.80 direct labor hours per book bag @ $13.60 per direct labor hour Variable overhead 0.80 direct labor hours per book bag @ $1.90 per direct labor hour Fixed overhead $96,800 (0.80 direct labor hours per book bag @ $11.00 per direct labor hour based on expected production of 11,000 book bags) Wooten Company produced 10,000 book bags in June, and actual amounts were as follows: Requirements (Click the icon to view the actual amounts.) 1 . Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Wooten's standards were as follows: 2. Compute the cost and volume variances for fixed overhead. (Click the icon to view the standards.) . . . . . Requirement 1. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Select the formulas to calculate direct materials cost and efficiency variances, then enter the variance amounts and the total. (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity. Label each variance as favorable (F) or unfavorable (U). Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Formula Variance Direct materials cost variance Direct materials efficiency variance = Total direct materials varianceStatic budget variable overhead $ 8,000 Static budget fixed overhead $ 3,200 Static budget direct labor hours 1,600 hours Static budget number of units 5,000 units The following information relates to Watson, lnc.'s overhead costs for the month: lick the icon to view the information.) Watson allocates manufacturing overhead to production based on standard direct labor hours. Compute the standard variable overhead allocation rate and the standard xed overhead allocation rate. Select the formula, then enter the amounts and compute the standard variable overhead allocation rate. + = Standard variable overhead allocation rate Data table Static budget variable overhead $2,300 Static budget fixed overhead $3,450 Static budget direct labor hours 1,150 hours Static budget number of units 575 units Standard direct labor hours 2 hours per unit X Requirements 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable.All - Star, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) All - Star allocates manufacturing overhead to production based on standard direct labor hours. All - Star reported the following actual results for 2024: actual number of units produced, 1,000; actual variable overhead, $5,000; actual fixed overhead, $3,500; actual direct labor hours, 1,900. Read the requirements. Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency varianceData table Standards: 3 yards of cloth per unit at $1.00 per yard 2 direct labor hours per unit at $19.50 per hour Overhead allocated at $4.00 per direct labor hour Actual: 2,300 yards of cloth were purchased at $1.05 per yard Employees worked 1,400 hours and were paid $19.00 per hour Actual variable overhead was $5,000 Actual fixed overhead was $1,800 Data table Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance $115 U 700 F 700 F 11,700 F 1.300 U 1.300 F 500 U 1,700 F X Requirements Record the journal entries for direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts (all materials purchased were used in production, and all goods produced were sold). Record the journal entries for the transfer to Finished Goods Inventory and Cost of Goods Sold (omit the journal entry for Sales Revenue). Record the journal entry to adjust the Manufacturing Overhead account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)Deluxe Company uses a standard cost system and reports the following information for 2024: Deluxe Company reported the following variances: (Click the icon to view the information.) (Click the icon to view the variances.) Deluxe produced 1,000 units of finished product in 2024. Read the requirements. . . . . . Begin by journalizing the purchase of direct materials on account, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit CreditData table Sales Revenue Cost of Goods Sold (at standard) Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance 800,000 198,500 7,550 F 5,350 U 410 U 520 F 610 U 300 F 2,140 U 4,320 U Quality Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024. The 2024 revenue and cost information for Quality follows: Click the icon to view the revenue and cost information.) Assume each fender produced was sold for the standard price of $40, and total selling and administrative oosts were $450,000. Prepare a standard cost income statement for 2024 for Quality Fender. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Quality Fender Standard Cost Income Statement For the Year Ended December 31, 2024 Gross Profit Operating Income (Loss)