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REQUIREMENT 6 please! Requirement 6. What is the total flexible budget variance for Craven System's manufacturing costs? Show how the total flexible budget variance is
REQUIREMENT 6 please!
Requirement 6. What is the total flexible budget variance for Craven System's manufacturing costs? Show how the total flexible budget variance is divided into materials, labour, and overhead variances. (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).) Total actual manufacturing costs Total flexible budget manufacturing costs Total flexible budget variance for manufacturing costs Direct material variances: Price Efficiency Total material variances Direct labour variances: Price Efficiency Total direct labour variances Overhead flexible budget variance Total flexible budget variance for manufacturing costs Requirement 5. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).) Craven System Manufacturing Overhead Variances Total overhead variance: Actual overhead cost $ 1,789,500 1,849,000 Standard overhead allocated to production $ 59,500 Total overhead variance F Overhead flexible budget variance: Actual overhead cost $ 1,789,500 1,759,000 Flexible budget overhead for actual outputs $ 30,500 Overhead flexible budget variance U Production volume variance: Flexible budget overhead for actual outputs $ 1,759,000 1,849,000 Standard overhead allocated to production $ 90,000 Production volume variance F Static Budget Actual Results (21,500 PCs) (19,500 PCs) $ 7,507,500 $ 8,707,500 1,852,500 Sales (19,500 PCs X $385 ) (21,500 PCs x $405 ) Variable manufacturing expenses: Direct materials (195,000 parts x $9.50 ) (210,000 parts x $9.30) Direct labour (39,000 hrs. x $14.50 ) (41,500 hrs. x $15.10 ) Variable overhead (195,000 parts x $ 4.10 ) (210,000 parts x $ 4.20 ) 1,953,000 565,500 626,650 799,500 882,000 Fixed manufacturing expenses: Fixed overhead 877,500 907,500 Total cost of goods sold 4,095,000 4,369,150 $ Gross profit 3,412,500 $ 4,338,350Step by Step Solution
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