Need help with a-d please!!

b) Do a level 2 comparison below: (hint: breakup variable cost of goods sold into DM, DL & VOH) lagets for industrial use. Carlos Saia Eriel Company's Ironton Plant produces preces who was recently applied plant manager of the Erosion Plant, has just been handed the plant's income statement for October. The state ment is shown below: Badgeted Sales (5,000 ing ....... $250,000 Less variable expenses Variable cost of goods sold ....... Wwwble seg p ... Thulwariable P S ... Contribution margle. Les xed Cape Mamlar verhad.... Selling and administrative ....... Thaled expenses ..... 135,000 3 (1.3909 Codech, aber war ma r ad Me Santiago was shocked to see the loss for the month, particularly since sales were exactly as budgeted. Heated, "I sure hope the plant has a standard cost system in open tion. If it doesn't, I won't have the lightese idea of where to start looking for the problem. The plant does use a standard cost system, with the following standard variable cost per ingot: Standard Quantity Standard Price Standard or Heart Cest Direct materials. ****** 4.0 pounds 52.50 per pound $10.00 39.00 per hour Varble m a ngerhead.. . 0.3 hours 32.00 per hour Total standard variabile cont c) What appears to be a problem area for the plant? d) What anaylsis could we do to get better detail on what is causing the problem in c)? Mr. Santiago has determined that dwing October the plant produced 5,000 ingots and incurred the following costs: . Purchased 25,000 pounds of materials at a cost of $2.95 per pound. There were no raw materials la Inventory at the beginning of the month. b. Used 19,800 pounds of materials in productions (Finished goods and work in process imentories are insignificant and can be ignored.) - $58,410 c. Worked 3,600 direct labor-hours at a cost of $8.70 per hour. $33.480 d. Incurred a total variable manufacturing overhead cost of $4,500 for the month. A total of 1,800 machine-hours was recorded. a) Do a Level 1 comparison here but remember only doing it for a responsibility center-plant manager Unit Static Actual Cost Budget Results Units Produced & sold Variable cost of goods sold Fixed mfg. overhead Erlei Company's os gets for d produces proces e Carlos Sat he was really apped plant manager of l. the front Plan, las just be handed the pat's income w est for O ber. The mest is shown below: Baded Actual Sales (5.00 ............. 250.000 b) Do a level 2 comparison below: fhint: breakup variable cost of goods sold into DM, DL & VOH) COM O good old Contribution marge Les des Manufacturing overhead .. 111,600 The expenses ....... 15 COD 115.000 ME Santiago was shocked to see the loss for the month, particularly since we were eucily budgeted. He said, "I sure hope the plant has a s ud cost system is per tion. If it doesn't, I won't have the slightesi dea of where to start looking for the problem The plant does use a standard cost system, with the following standard able cost per c) What appears to be a problem area for the plant? Downlo $10.00 Directors ... Vielle m aching overhew T a ndard variable con ...... 12.30 papan 18.00 eur 52.00 per hour 116.00 d) What anaylsis could we do to get better detail on what is causing the problem in c)? Mr. Santiago has determined that during October the plant produced 5,000 ingots and incurred the following costs # Purchased 25.000 pounds of materials at a cost of $2.95 per pound. There were now materials ia lectory of the beginning of the most b. Used 19.800 pounds of materials in productos (Finished goods and work in proces investories are insignificant and can be ignored.) - $58,410 e Worked 3.600 direct laber.boursala com o 8.70 per bour $33,480 d. Incurred a total variable manufacturing overhead cost of $4,500 for the month. A la of 1.800 machine-hours was recorded. a) Do a Level 1 comparison here but remember only doing it for a responsibility center - plant manager Unit Static Actual Cost Budget Results Units Produced & sold Variable cost of goods sold Fixed mfg. overhead b) Do a level 2 comparison below: (hint: breakup variable cost of goods sold into DM, DL & VOH) lagets for industrial use. Carlos Saia Eriel Company's Ironton Plant produces preces who was recently applied plant manager of the Erosion Plant, has just been handed the plant's income statement for October. The state ment is shown below: Badgeted Sales (5,000 ing ....... $250,000 Less variable expenses Variable cost of goods sold ....... Wwwble seg p ... Thulwariable P S ... Contribution margle. Les xed Cape Mamlar verhad.... Selling and administrative ....... Thaled expenses ..... 135,000 3 (1.3909 Codech, aber war ma r ad Me Santiago was shocked to see the loss for the month, particularly since sales were exactly as budgeted. Heated, "I sure hope the plant has a standard cost system in open tion. If it doesn't, I won't have the lightese idea of where to start looking for the problem. The plant does use a standard cost system, with the following standard variable cost per ingot: Standard Quantity Standard Price Standard or Heart Cest Direct materials. ****** 4.0 pounds 52.50 per pound $10.00 39.00 per hour Varble m a ngerhead.. . 0.3 hours 32.00 per hour Total standard variabile cont c) What appears to be a problem area for the plant? d) What anaylsis could we do to get better detail on what is causing the problem in c)? Mr. Santiago has determined that dwing October the plant produced 5,000 ingots and incurred the following costs: . Purchased 25,000 pounds of materials at a cost of $2.95 per pound. There were no raw materials la Inventory at the beginning of the month. b. Used 19,800 pounds of materials in productions (Finished goods and work in process imentories are insignificant and can be ignored.) - $58,410 c. Worked 3,600 direct labor-hours at a cost of $8.70 per hour. $33.480 d. Incurred a total variable manufacturing overhead cost of $4,500 for the month. A total of 1,800 machine-hours was recorded. a) Do a Level 1 comparison here but remember only doing it for a responsibility center-plant manager Unit Static Actual Cost Budget Results Units Produced & sold Variable cost of goods sold Fixed mfg. overhead Erlei Company's os gets for d produces proces e Carlos Sat he was really apped plant manager of l. the front Plan, las just be handed the pat's income w est for O ber. The mest is shown below: Baded Actual Sales (5.00 ............. 250.000 b) Do a level 2 comparison below: fhint: breakup variable cost of goods sold into DM, DL & VOH) COM O good old Contribution marge Les des Manufacturing overhead .. 111,600 The expenses ....... 15 COD 115.000 ME Santiago was shocked to see the loss for the month, particularly since we were eucily budgeted. He said, "I sure hope the plant has a s ud cost system is per tion. If it doesn't, I won't have the slightesi dea of where to start looking for the problem The plant does use a standard cost system, with the following standard able cost per c) What appears to be a problem area for the plant? Downlo $10.00 Directors ... Vielle m aching overhew T a ndard variable con ...... 12.30 papan 18.00 eur 52.00 per hour 116.00 d) What anaylsis could we do to get better detail on what is causing the problem in c)? Mr. Santiago has determined that during October the plant produced 5,000 ingots and incurred the following costs # Purchased 25.000 pounds of materials at a cost of $2.95 per pound. There were now materials ia lectory of the beginning of the most b. Used 19.800 pounds of materials in productos (Finished goods and work in proces investories are insignificant and can be ignored.) - $58,410 e Worked 3.600 direct laber.boursala com o 8.70 per bour $33,480 d. Incurred a total variable manufacturing overhead cost of $4,500 for the month. A la of 1.800 machine-hours was recorded. a) Do a Level 1 comparison here but remember only doing it for a responsibility center - plant manager Unit Static Actual Cost Budget Results Units Produced & sold Variable cost of goods sold Fixed mfg. overhead