need help with part h please

Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottom line of the report and saw the favorable variance for operating income, confirming her decision to push the workers to get those last 340 cases off the production line before the end of the month. But as she glanced over the rest of numbers, Lexi couldnt help but wonder if there were errors in some of the line items. She was puzzled how most of the operating expenses could be higher than the budget since she had worked hard to manage the production line to improve efficiency and reduce costs. Yet the report, shown below, showed a different story.

Actual	Budget	Variance
Cases produced and sold	10,250	9,910	340	Favorable
Sales revenue	$1,930,000	$1,853,200	$76,800	Favorable
Direct material	555,951	545,050	10,901	Unfavorable
Direct labor	265,241	257,660	7,581	Unfavorable
Variable manufacturing overhead	282,447	277,480	4,967	Unfavorable
Variable selling expenses	92,292	89,190	3,102	Unfavorable
Variable administrative expenses	41,364	39,640	1,724	Unfavorable
Contribution margin	692,705	644,180	48,525	Favorable
Fixed manufacturing overhead	110,001	109,010	991	Unfavorable
Fixed selling expenses	68,875	69,370	495	Favorable
Fixed administrative expenses	128,632	128,830	198	Favorable
Operating income	$385,197	$336,970	$48,227	Favorable

Lexi picked up the phone and called Irvin. Irvin, I dont get it. We beat the budgeted operating income for the month, but look at all the unfavorable variances on the operating costs. Can you help me understand whats going on? Let me look into it and Ill get back to you, Irvin replied. Irvin gathered the following additional information about the months performance.

	Direct materials purchased: 101,082 pounds at a total of $555,951
	Direct materials used: 101,082 pounds
	Direct labor hours worked: 26,262 at a total cost of $265,241
	Machine hours used: 40,581

Irvin also found the standard cost card for a case of product.

Standard Price	Standard Quantity	Standard Cost
Direct materials	$5.5 per pound	10 pounds	$55
Direct labor	$10 per DLH	2.58 DLH	25.80
Variable overhead	$7 per MH	4 MH	28.00
Fixed overhead	$2.73 per MH	4 MH	10.92
Total standard cost per case	$119.72

Warning

Don't show me this message again for the assignment

Ok Cancel

(a-g)

	Your answer is correct.

(a-b) Calculate the direct material price variance and direct material quantity variance for the month. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Direct material price variance	$ 0	UnfavorableFavorableNot ApplicableEAT_1377766955333_0_28339661426262475
Direct material quantity variance	$ 7799	UnfavorableNot ApplicableFavorableEAT_1377766955333_0_8387377234212653

(c-d) Calculate the direct labor rate variance and direct labor efficiency variance for the month. (Round answers to 0 decimal places, e.g. 1525. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Direct labor rate variance	$ 2621	Not ApplicableUnfavorableFavorableEAT_1377766955333_0_35709002385175537
Direct labor efficiency variance	$ 1830	UnfavorableNot ApplicableFavorableEAT_1377766955333_0_8387377234212653

(e-f) Calculate the variable overhead spending variance and variable overhead efficiency variance for the month. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Variable overhead spending variance	$ 1620	UnfavorableFavorableNot ApplicableEAT_1377766955333_0_8387377234212653
Variable overhead efficiency variance	$ 2933	UnfavorableFavorableNot ApplicableEAT_1377777124945_0_07288935125108609

(g) Calculate the fixed overhead spending variance for the month. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Fixed overhead spending variance

$ 991

Not ApplicableUnfavorableFavorableEAT_1377766955333_0_35709002385175537

Warning

Don't show me this message again for the assignment

Ok Cancel

SHOW ANSWER HIDDEN Show Answer

Link to Text Link to Text Link to Text Link to Text

Attempts: 1 of 1 used

(h) Prepare a performance report that will assist Lexi in evaluating her efforts to control production costs. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Price/Rate/Spending Variance	Quantity/Efficiency Variance
Direct materials	$	UnfavorableFavorableNot Applicable	$	UnfavorableFavorableNot Applicable
Direct labor		Not ApplicableFavorableUnfavorable		UnfavorableFavorableNot Applicable
Variable overhead		UnfavorableNot ApplicableFavorable		FavorableUnfavorableNot Applicable
Fixed overhead		Not ApplicableFavorableUnfavorable		Not ApplicableFavorableUnfavorable
Total	$	UnfavorableFavorableNot Applicable	$	Not ApplicableFavorableUnfavorable