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. Enter the variances in each of the blank line spaces.

Income Statements from Part One to calculate the variances for Part Two

PROBLEM - PART TWO SOLUTION SHEET FOR INTERFACE BETWEEN BUDGETS & VARIANCES ACTUAL RESULTS MASTER (STATIC) BUDGE Total Variance ACTUAL RESULTS FLEXIBLE BUDGET MASTER (STATIC) BUDGET -Flexible Budget Variance Sales Volume Variance Cost Variance Selling Price Variance N/A Sales Mix Variance Sales Quantity Variance Direct Costs Overhead Costs NA Market Share N/A Market Size Materials Labor Variable Fixed Price Efficiency COMPREHENSIVE PROBLEM - PART TWO REQUIRED: (1) Determine the variances (both S amount and F or U for the bold-lettered variances. Enter the variance in the blank space. Price Efficiency Spending Efficiency N/A Spending Volume PROBLEM - PART TWO (A) SPENDING (OR COST VARIANCES CALCULATION SHEET GENERALIZED MODEL FORALL VARIABLE COST VARIANCES (Mts, Labor, Ver. OH (1) (2) 3 Actual Qty of Input Actus Qty of input Standard Qty of input at Actual Price: at Standad Price: at Standard Price: (4 X API AQX SP 150 x SPD Note: Numbes appearing below in parenthesis referto above boxes. Combined Spending or "Cost Variance Price verince Portion Quantity Variance Portion Materials Price Variance Portion Quantity Variance Portion AQ.X AP) - XSP) = (AP-340) (AP-SPA AQ x SP) - 150 x 3) = 40-50 (40-50 (5 Labor Price "Rate" variance Quantity"Eiciency Variance (1)-(2) 121 - 131 AH XARAHX 3 = AR-5H (AHX SR - (SHX) = AH-SHSR AR-SRAH AH-SHOR Variable Overhead assuming Labor Hours is Driver Price lending Variance Quentity"Eiciency Vrience (1)-(2) 12-01 (H X AR) - (H x 3) = (AR-RAH (H x SR) - (x 3) = (AH-SH(SR) (AR-SRAH AH-SHSR Note: This formulation for overeed variances may differ from textbook fomules, but resulting answes are identical. Take your pick Also, remember the hours and rates relate to the OH driver! FIXED COSTS OVERHEAD VARIANCE We do one variance for fixed costs overed: the Spending Variance, which is the difference between the planned costs and actual costs. IN-HOUSE INCOME STATEMENTS (reasonable rounding off is OK) Actual Results Detail Summary 550*125 68750 Flexible Budget Detail Summary 550*120 66000 Master (Static) Budget Detail Summary 500*120 60000 Revenue Revenue Revenue 1250*1.40 1640*21 2*1.50*550 20*3*550 8*1650 2*1.50*500 20*3*500 8*1500 COGS Materials Labor Variable OH Total Var. Contr. Margin Less: Fixed OH Net Income 1750 34440 11890 48080 20670 7800 12870 COGS Materials Labor Variable OH Total Var. Contr. Margin Less: Fixed OH Net Income 1650 33000 13200 47850 18150 8000 10150 COGS Materials Labor Variable OH Total Var Contr. Margin Less: Fixed OH Net Income 1500 30000 12000 43500 16500 8000 8500