Mini-Exercise 15-1 (Static) Flexible budget LO 3 Acme Company's production budget for August is 17.500 units and includes the following component unit costs: direct materials, $8: direct labor, $10: variable overhead, 56. Budgeted fixed overhead is $35.000. Actual production in August was 17,000 units. Required: Prepare a flexible budget that would be used to compare against actual production costs for August Direct materials s Original Budget (17,500 units) 140.000 175.000 105.000 32.000 $ 452 000 Cost Formula S 140.000 per unit 5 175.000 per unit 5 105.000 per unit $32,000 per month Flexed Budget (17,000 units) s 136.000 170.000 102000 32.000 $ 440.000 Direct labor Variable overhead Fixed overhead Total budgeted cost Mini-Exercise 15-2 (Static) Flexible budget and performance reporting LO 3,4 Acme Company's production budget for August is 17,500 units and includes the following component unit costs direct materials, $8 direct labor $10: variable overhead. $6. Budgeted foxed overhead is $35.000. Actual production in August was 17.000 units. Actual unit component costs incurred during August include direct materials. 58 25: direct labor. $9.45, variable overhead, 56.82 Actual fixed overhead was $33,500. Required: Prepare a performance report, including each cost component indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (.e., zero variance).) Budget Variance Original Budget 117,500 units) Flexed Budget (17.000 units) Actual Cost (17.000 units) Cost Component Direct materials Direct labor Variable overhead Fixed overhead Total budgeted cost 3 0 Mini-Exercise 15-5 (Static) Variable overhead variances LO 4, 5, 6 Acme Company's production budget for August is 17.500 units and includes the following component unit costs: direct materials, $8; direct labor, 510: variable overhead, 56. Budgeted fixed overhead is $35.000. Actual production in August was 17000 units. Actual unit component costs incurred during August include direct materials. $8.25, direct labor. $9.45: variable overhead. $6.82 Actual fixed overhead was $33,500. The standard variable overhead rate per unit consists of $6 per machine hour and each unit is allowed a standard of 1 hour of machine time. During August, $115.940 of actual variable overhead cost was incurred for 18.700 machine hours Required: Calculate the variable overhead spending variance and the variable overhead efficiency variance (Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effectie zero variance).) Variable overhead spending variance Variable overhead officiency variance 212 Mini-Exercise 15-6 (Static) Fixed overhead variances LO 4, 5, 6 Acme Company's production budget for August is 17,500 units and includes the following component unit costs: direct materials, 58: direct labor, $10; variable overhead, $6. Budgeted fixed overhead is $35.000. Actual production in August was 17000 units. Actual unit component costs incurred during August include direct materials. 58.25: direct labor, $9.45, variable overhead, $6.82. Actual fixed overhead was $33,500. The standard fixed overhead application rate per unit consists of $2 per machine hour and each unit is allowed a standard of 1 hour of machine time Required: Calculate the fixed overhead budget variance and the fixed overhead volume variance (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance) Fored overhead budget variance Fored overhead volume variance Problem 15-22 (Static) Calculate variable cost variances-explain results LO 4,5 The standards for one case of liquid weed killer are as follows: Direct materials Direct labor Variable overhead (based on machine hours) 6 lb@$ 7.50/lb 3.6 hr $15.00/hr 1.2 hr $ 5.50/her During the week ended May 6, the following activity took place 4360 machine hours were worked 22,800 lb of raw material were purchased for inventory at a total cost of $174 420 3.800 cases of finished product were produced 22.580 lb of raw material were used. 13,440 labor hours were worked at an average rate of $16.25 per hour $23.108 actual variable overhead costs were incurred Required: Calculate each of the following variances (Do not round Intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effectie, zero variancel a Price variance for raw materials purchased Raw materials usage variance Direct laborate variance Direct laboreiciency variance Variable overhead spending variance Vadatle overhead eficiency variance