Question 1: Maria's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Flexible Variances Budget Price Efficiency Material A $20,000 $1,000U $1,200F Material B 30,000 500F 800U Material C 40,000 1,400U 1,000F 1) The actual amount spent for Material A was: 2) The explanation that lower-quality materials were purchased is most likely for which material and why? 3) Make the appropriate standard costing journal entries for material C. Question 2: Different management levels in Cromwell's, Inc., require varying degrees of managerial accounting information. Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows: Budgeted output units Budgeted fixed manufacturing overhead Budgeted variable manufacturing overhead direct labor hour 3,200 units $20,000 $5 per 2 hours per $26,000 7,200 $35,600 Budgeted direct manufacturing labor hours finished good unit Fixed manufacturing costs incurred Direct manufacturing labor hours used Variable manufacturing costs incurred Actual units manufactured 3,400 4) Compute the variable overhead variances 5) Make the variable overhead journal entries 6) Compute the fixed overhead variances 7) Make the fixed overhead variance journal entries. 13 000 000 Dashboard Calendar To Do Notifications Inbox