Please see attachment for full problem

Pacific Company provides the following information about its budgeted and actual results for June 2014. Although the expected June volume was 25,000 units produced and sold, the company actually produced and sold 27,000 units as detailed here:

Required

1. Prepare June flexible budgets showing expected sales, costs, and net income assuming 20,000, 25,000, and 30,000 units of output produced and sold.
2. Prepare a flexible budget performance report that compares actual results with the amounts budgeted if the actual volume had been expected.
3. Apply variance analysis for direct materials and direct labor.
4. Compute the total overhead variance, and the controllable and volume variances.
5. Compute spending and efficiency variances for overhead.
6. Preparejournalentriestorecordstandardcosts,andpriceandquantityvariances,fordirectmaterials,directlabor,andfactoryoverhead

Minicase 9 Flexible Budgets and Standard Costs Pacific Company provides the following information about its budgeted and actual results for June 2014. Although the expected June volume was 25,000 units produced and sold, the company actually produced and sold 27,000 units as detailed here: Budgeted 25,000 units Selling price Variable costs Direct materials Direct labor Factory supplies Utilities Selling costs Actual 27,000 units $5 $1.24 $1.50 .25 .50 .40 $1.12 $1.40 .37 .60 .34 $3,750 2,500 1,200 500 750 Fixed costs Depreciation - machinery* Depreciation - building* General liability insurance Property taxes Other administrative expense $5.23 $3,710 2,500 1,250 485 900 * Indicates factory overhead item; $ 0.75 per unit or $ 3 per direct labor hour for variable overhead, and $ 0.25 per unit or $ 1 per direct labor hour for fixed overhead. Standard costs based on expected output of 25,000 units Direct materials, 4 oz. @ $0.31/oz Direct labor, .25 hours @ $6 per hour Overhead Per unit output Quantity to be used Total Cost $1.24 per unit 100,000 oz $31,000 $1.50 per unit $1.00 per unit 6,250 hours 37,500 25,000 Actual costs incurred to produce 27,000 units Direct materials, 4 oz. @ $0.28/oz Direct labor, .20 hours @ $7 per hour Overhead Per unit output Quantity to be used Total Cost $1.12 per unit 108,000 oz $30,240 $1.40 per unit 5,400 hours $1.20 per unit 37,800 32,400 Standard costs based on expected output of 27,000 units Direct materials, 4 oz. @ $0.31/oz Direct labor, .25 hours @ $6 per hour Overhead Per unit output Quantity to be used Total Cost $1.24 per unit 108,000 oz $33,480 $1.50 per unit 6,750 hours 40,500 26,500 Required 1. Prepare June flexible budgets showing expected sales, costs, and net income assuming 20,000, 25,000, and 30,000 units of output produced and sold. 2. Prepare a flexible budget performance report that compares actual results with the amounts budgeted if the actual volume had been expected. 3. Apply variance analysis for direct materials and direct labor. 4. Compute the total overhead variance, and the controllable and volume variances. 5. Compute spending and efficiency variances for overhead. 6. Prepare journal entries to record standard costs, and price and quantity variances, for direct materials, direct labor, and factory overhead