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Need a little help...please and thank you! TIDEWATER WRENCH COMPANY LLC COMPREHENSIVE PROBLEM - PART TWO REQUIRED: Determine the variances (both the $ amount and

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Need a little help...please and thank you!

TIDEWATER WRENCH COMPANY LLC

COMPREHENSIVE PROBLEM - PART TWO

REQUIRED: Determine the variances (both the $ amount and F or U for ALL the *HIGHLIGHTED* variances. Enterthe variances in each of the blank line spaces.

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PROBLEM - PART TWO [A) SPENDING (OR "COST"} VARIANCES CALCULATION SHEET GEN BRAL ZED MODEL FOR ALL VARIABLE COST VARIANCES [Mitis, Labor, Ver. OH) ActualQty of Input Actuel Qty of Input Standard Q ty of Input At Actual Price: at Stended Price: at Standard Price: AO N SP (50 X SP] Note: Numbes appearing below in parentheses refer to above boxes Combined Spending (or "Cost" / Variance Price Variance Portion Quantity Variance Portion (1) -12 Materials Price Variance Portion Quantity Variance Portion (AQ X AP ] - (AQ X SP] = (AP - SPYAQ] (AP - SP ( AQ] (40 - 50](3F] Labor Price ( Rate" ] Variance Quantity ("Emiciency" ] Veriance 1 - 21 (AH X AR ] - (AH X 3:]= (AR - 3: ]144 (AH X ER] - (3X 3:]BAH - SH ER] (AR - ER(AH] (AH - SHER] Venable Overhead (assuming Labor Hours is Driven] Price ('Spending"| Variance Quantity ("Efficiency" ] Veriance (2] - 13 (AH N AR ] - ( AH X 5: ] = (46 - 5: ] AH] (AH X 3R ] - (3H X 5: ] = (AH - SHINER] (AR - ER](AH] (AH - SHER] Note: This formulation for overhead variances may differ from textbook tomules, but resulting answers are identical. Takeyourpick! Allo, remember the hours and rates relate to the OH driver! FIXED COSTS OVERHEAD VARIANCE We do one variancefor fixed cost overhead: the Spending Variance, which is the differencebetween the planned costs and actual costs.PROBLEM - PART TWO SOLUTION SHEET FOR INTERFACE BETWEEN BUDGETS & VARIANCES MASTER (STATIC) BUDGE ACTUAL RESULTS + Total Variance ACTUAL RESULTS FLEXIBLE BUDGET MASTER (STATIC) BUDGET Flexible Budget Variance Sales Volume Variance N/A Cost Selling Price Sales Mix Sales Quantity Variance Variance Variance Variance N/A_ N/A Overhead Marker Market Direct Size Costs Costs Share Materials Labor Variable Fixed COMPREHENSIVE PROBLEM - PART TWO REQUIRED: (1) Determine the variances (both $ amount Price Efficiency and F or U for the bold-lettered variances. Enter Price Efficiency the variance in the blank space. Spending Efficiency N/A Spending VolumeIN-HOUSE INCOME STATEMENTS (reasonable rounding off is OK) Actual Results Flexible Budget Master (Static) Budget Detail Summary Detail Summary Detail Summary Revenue 550*125 68750 Revenue 550*120 66000 Revenue 500*120 60000 COGS COGS COGS Materials 1250*1.40 1750 Materials 2*1.50*550 1650 Materials 2*1.50*500 1500 Labor 1640*21 34440 Labor 20*3*550 33000 Labor 20*3*500 30000 Variable OH 11890 Variable OH 8*1650 13200 Variable OH 8*1500 12000 Total Var. 48080 Total Var 47850 Total Var. 43500 Contr. Margin 20670 Contr. Margin 18150 Contr. Margin 16500 Less: Fixed OH 7800 Less: Fixed OH 8000 Less: Fixed OH 8000 Net Income 12870 Net Income 10150 Net Income 8500

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