Question
Please help followed by the format!!! It would be nice if there were a process Thank you! Vaughn manufactures aluminum canoes. In planning for the
Please help followed by the format!!! It would be nice if there were a process
Thank you!
Vaughn manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,500 canoes, 3,000 canoes, and 3,500 canoes. Canoes sell for $809 each. The standard variable cost information for a canoe is as follows.
Direct materials | $ | 325 | ||
Direct labor | 195 | |||
Variable overhead | ||||
Utilities | 35 | |||
Indirect material | 30 | |||
Indirect labor |
| 60 | ||
Total | $ | 645 |
Annual fixed overhead cost is expected to be:
Maintenance | $ | 18,490 | ||
Depreciation | 36,500 | |||
Insurance | 25,920 | |||
Rent |
| 28,550 | ||
Total | $ | 109,460 |
Alexis King chose to prepare a static budget based on sales of 3,000 canoes. Actual sales were 3,100 canoes at a price of $859 each. The company incurred the following costs for the year:
Direct material | $ | 994,300 | |
Direct labor | 575,800 | ||
Variable overhead | 398,200 | ||
Fixed overhead |
| 116,660 | |
Total | $ | 2,084,960 |
Actual Results | Flexible Budget Variance | Flexible Budget | Sales Volume Variance | Static Budget | ||||
Unit sales | UnfavorableFavorableNot Applicable | Not ApplicableFavorableUnfavorable | ||||||
OverheadDirect laborTotal variable expensesVariable expensesContribution marginSales revenueTotal fixed expensesOperating incomeDirect material | $ | $ | FavorableUnfavorableNot Applicable | $ | $ | FavorableUnfavorableNot Applicable | $ | |
LessAdd Direct materialTotal fixed expensesTotal variable expensesOperating incomeOverheadContribution marginVariable expensesSales revenueDirect labor : | ||||||||
Direct labor Direct material Overhead Total variable expenses Contribution margin Total fixed expenses Operating income Sales revenue Variable expenses | Not ApplicableFavorableUnfavorable | FavorableUnfavorableNot Applicable | ||||||
Overhead Operating income Contribution margin Total variable expenses Direct material Direct labor Sales revenue Total fixed expenses Variable expenses | UnfavorableNot ApplicableFavorable | Not ApplicableFavorableUnfavorable | ||||||
Operating income Variable expenses Contribution margin Total variable expenses Direct labor Total fixed expenses Sales revenue Direct material Overhead | Not ApplicableUnfavorableFavorable | Not ApplicableFavorableUnfavorable | ||||||
Contribution marginVariable expensesOverheadTotal variable expensesDirect materialTotal fixed expensesSales revenueOperating incomeDirect labor | FavorableUnfavorableNot Applicable | Not ApplicableUnfavorableFavorable | ||||||
Total variable expensesVariable expensesDirect materialTotal fixed expensesDirect laborOverheadContribution marginOperating incomeSales revenue | UnfavorableNot ApplicableFavorable | Not ApplicableFavorableUnfavorable | ||||||
Total variable expensesOperating incomeOverheadDirect materialTotal fixed expensesSales revenueContribution marginVariable expensesDirect labor | UnfavorableFavorableNot Applicable | UnfavorableNot ApplicableFavorable | ||||||
Operating incomeContribution marginSales revenueDirect materialOverheadDirect laborTotal variable expensesVariable expensesTotal fixed expenses | $ | $ | Not ApplicableFavorableUnfavorable | $ | $ | FavorableUnfavorableNot Applicable | $ |
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