Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with problem 3c. I have worked out the other problems on the assignment but just need help with that specific section Comprehensive: Master

Please help with problem 3c. I have worked out the other problems on the assignment but just need help with that specific section image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Comprehensive: Master Budgets, Variances, Performance Evaluation Sudsy Days sold 7000 Soap jugs in 2019, and its actual operating income was as follows: Sudsy Days Balance Sheet December 31, 2019 $ 630,000 $ 94,890 36,540 131,430 498,570 Net Sales Revenue Cost of Goods Sold: Variable Fixed Gross Profit Selling & Admin Expenses: Variable Fixed Operating Income Other income and (Expenses): Interest Expense Income Before Income Taxes Income Tax Expense Net Income 12,600 61,400 74,000 424,570 (425) 424,145 22,000 402,145 $ Comprehensive: Master Budgets, Variances, Performance Evaluation During 2019, Sudsy Soap recorded the following cost data: $ Standard Cost Information Quantity Cost Direct Materials 3 lbs per jug $2 per lb Direct Labor 0.30 hours per jug $12 per hour Variable MOH 0.30 hours per jug $12 per hour Fixed MOH Static Budget Amount: $ 38,340 0.30 hours per jug 21.00 per hour 1 2 Actual Cost Information 3 Direct Materials 20,700 lbs $ 2.50 per 1b 4 Direct Labor 2,060 hours $ 12.40 per hour 5 Variable MOH 2,060 hours S 11.60 per hour 6 Fixed MOH $36,540 7 8 3a. Compute the cost and efficiency variances for direct materials and direct labor. 9 0 3b. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed 1 overhead cost and volume variances. 2 3 3c. Prepare the standard cost income statement for 2019. 3a. Compute the cost and efficiency variances for direct materials and direct labor. F/U DM Cost Variance: 10,350 V DM Efficient Variance: F/U 600 F DL Cost Variance: 824 U DL Efficiency Variance: 480 F 3b. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. F/U 824 F F/U 480 F VOH Cost Variance: VOH Efficient Variance: FOH Cost Variance: 1,800 F VOH Volume Variance: 4920 F 3c. Prepare the standard cost income statement for 2019. Sudsy Days Standard Cost Income Statement For the Year Ended December 31, 2019 Net Sales Revenue @ Standard COGS @ Standard Manufacturing Cost Variances: DM Cost Variance DM Efficiency Variance DL Cost Variance DL Efficiency Variance VOH Cost Variance VOH Efficiency Variance FOH Cost Variance FOH Volume Variance Total Manufacturing Cost Variances COGS @ Actual cost Gross Profit S&A Expenses: Variable Fixed Operating Income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing

Authors: Michael C. Knapp

8th edition

978-0538466790, 538466790, 978-1285066608

More Books

Students also viewed these Accounting questions

Question

=+c. What is the value of MSE?

Answered: 1 week ago

Question

What are risks of medicating youths with ADHD?

Answered: 1 week ago