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tome insert Draw Design Layout Review View Help X inherit 14 O B I U v ab X x = Styles Editing Dictate Sensitivity Editor A - P Av Aa A A ard Font Paragraph Styles Voice QUESTION 2 Sensitivity Editor CRX Industries Inc. manufactures a lid for a hydroponic garden planter. The 4 34,600 kilograms of materials were used in production. (Finished goods standard cost for one planter is as follows: and work-in-process inventories are insignificant and can be ignored.) Std. Quality of Standard Price Standard Cost 14,800 direct labour-hours were worked at a cost of $10 per hour. Hours or Rate a Variable manufacturing overhead cost totaling $28,290 for the month Direct Materials 2.2 kgs $6.50 $14.30 was incurred. A total of 7,900 machine hours was recorded Direct Labour .45 hours $9.00 $4.05 It is the company's policy to close all variances to cost of goods sold on a Variable Mfg. monthly basis. .20 machine $2,50 Required: Overhead per $0.50 hours machine hour calculate the following variances for June: Total Stl. Cost $18.85 Direct materials price and quantity variances. The plant has been experiencing problems for some time, as is shown by its h. Direct labour rate and efficiency variances. June income statement when it made and sold 15,000 planters; the normal Variable overhead spending and efficiency volume is 15.150 planters per month. Fixed costs are allocated using machine. hours. Flexible Budget Actual Sales (15,000 planters) $750,000 $750,000 Less: Variable Expenses Variable COGs $282 750 $805.000 Variable Selling Exp. $ 25.000 $ 25,000 Total Variable Expenses | $307.750 $330.000 Contribution Margin $442.500 $420.000 Less: Fixed Expenses Mfc. Overhead $260 580 $260.5680 Selling and Admin $105.000 $105.000 H Total Fixed Expenses $366 580 $366 580 Net Income $75.920 $58.420 Includes direct maters Joe Bidenold, the general manager of the Plant wants to get things under control. He needs information about the operations in June since the income statement signaled that the problemt could be due to the variable cost of goods sold. Bidebold learns the following about operations and costs in June 50.090 Kilograms of materials were purchased at a cost of $6.25 per