P10.3 (LO 1, 3, 4, 5), AN Elianna Corporation started the year expecting to produce and sell 130,000 units of its super-insulating coffee mugs, but it ended the year having produced and sold even more than that142,000 units. Needless to say, owners Eli and his sister Anna were thrilled to have exceeded sales goals for the year. By the end of the third quarter, results looked promising. They were even more excited to see the final year-end financial statements and share the great news with their crew. The actual results, along with the original master budget for the year, are as follows. Actual Income Flexible Budget Master Budget Sales $2,591,500 $2,405,000 Variable costs: DM 427,750 390,000 DL 618,000 546,000 Variable- MOH 265,500 208,000 Variable SG&A 120,700 110,500 Contribution margin 1,159,550 1,150,500 Fixed costs: MOH 480,000 468,000 SG&A 431,500 406,000 Operating income $ 248,050 $ 276,500 In addition to seeing total actual results, the owners would like a more thorough analysis of many of these accounts. Required a. Recreate Elianna's standard cost sheets for DM, DL, variable-MOH, and fixed- MOH. Specify quantity and price standards, along with a total standard cost per unit for each. Additional information pertaining to each resource follows. Each mug was expected to use two pounds of DM. Each mug was expected to use 0.30 hours of DL. Variable- and fixed- MOH costs are applied based on pounds of DM. b. Insert Elianna's flexible budget into the above framework. Calculate and label all flexible budget variances and sales activity variances, indicating an amount and sign for each. c. Conduct a detailed variance analysis for all product costs (price, efficiency, and volume variances), taking the following details into consideration. The company purchased and used 295.000 pounds of DM. 41,200 DL hours were used. P10.3 (LO 1, 3, 4, 5), AN Elianna Corporation started the year expecting to produce and sell 130,000 units of its super-insulating coffee mugs, but it ended the year having produced and sold even more than that142,000 units. Needless to say, owners Eli and his sister Anna were thrilled to have exceeded sales goals for the year. By the end of the third quarter, results looked promising. They were even more excited to see the final year-end financial statements and share the great news with their crew. The actual results, along with the original master budget for the year, are as follows. Actual Income Flexible Budget Master Budget Sales $2,591,500 $2,405,000 Variable costs: DM 427,750 390,000 DL 618,000 546,000 Variable- MOH 265,500 208,000 Variable SG&A 120,700 110,500 Contribution margin 1,159,550 1,150,500 Fixed costs: MOH 480,000 468,000 SG&A 431,500 406,000 Operating income $ 248,050 $ 276,500 In addition to seeing total actual results, the owners would like a more thorough analysis of many of these accounts. Required a. Recreate Elianna's standard cost sheets for DM, DL, variable-MOH, and fixed- MOH. Specify quantity and price standards, along with a total standard cost per unit for each. Additional information pertaining to each resource follows. Each mug was expected to use two pounds of DM. Each mug was expected to use 0.30 hours of DL. Variable- and fixed- MOH costs are applied based on pounds of DM. b. Insert Elianna's flexible budget into the above framework. Calculate and label all flexible budget variances and sales activity variances, indicating an amount and sign for each. c. Conduct a detailed variance analysis for all product costs (price, efficiency, and volume variances), taking the following details into consideration. The company purchased and used 295.000 pounds of DM. 41,200 DL hours were used