Requirement 6. What is the total flexible budget variance for Jones 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 (14) Total flexible budget variance for manufacturing costs Direct material variances: (15) Price (16) Efficiency (17) Total material variances Direct labour variances: (18) Price (19) Efficiency (20) Total direct labour variances (21) Overhead flexible budget variance (22) Total flexible budget variance for manufacturing costs Requirement 7. Have Jones System's managers done a good job or a poor job controlling material and labour costs? Why? direct materials price variance, direct materials efficiency The variances computed in Requirements 3 and 4 suggest that the managers have done a (23) job controlling materials and labour costs. The (24) variance, and direct labour efficiency variance far outweigh the (25). direct labour price variance. Requirement 8. Describe how Jones System's managers can benefit from the standard costing system. Select five benefits managers may have from the standard costing system. Standards: (26) (27) (28) (29) (30) Requirement 7. Have Jones System's managers done a good job or a poor job controlling material and labour costs? Why? Print direct materials price variance, direct materials efficiency The variances computed in Requirements 3 and 4 suggest that the managers have done a (23) job controlling materials and labour costs. The (24). variance, and direct labour efficiency variance far outweigh the (25) direct labour price variance. Requirement 8. Describe how Jones System's managers can benefit from the standard costing system. Select five benefits managers may have from the standard costing system. Standards: (26) (27) (28) (29) (30) 1: Data Table Static Budget Actual Results (22,500 PCs) (20,500 PCs) $ 7,995,000 Sales (20,500 PCs X $390) $ 9,225,000 2,029,500 2,119,450 (22,500 PCs x $410) Variable manufacturing expenses: Direct materials (205,000 parts x $9.90) (218,500 parts x $9.70) Direct labour (41,000 hrs. x $14.40 ) (43,500 hrs. x $15.00 ) Variable overhead (205,000 parts x $ 3.90) (218,500 parts x $ 4.00 ) Fixed manufacturing expenses: 590,400 652,500 799,500 874,000 Fixed overhead 902,000 932,000 4,321,400 4,577,950 Total cost of goods sold $ Gross profit 3,673,600||$ 4,647,050 2: Requirements 1. Determine the company's standard cost for one unit. 2. Prepare a flexible budget based on the actual number of PCs sold. 3. Compute the price variance for direct materials and for direct labour. Compute the efficiency variances for direct materials and direct labour Print Requirement 8. Describe how Jones System's managers can benefit from the standard costing system. Select five benefits managers may have from the standard costing system. Standards: (26) (27) (28) (29) (30) 1: Data Table Static Budget Actual Results (22,500 PCs) (20,500 PCs) 7,995,000 Sales (20,500 PCs x $390) $ (22,500 PCs x 9,225,000 $410) 2,029,500 2,119,450 590,400 Variable manufacturing expenses: Direct materials (205,000 parts x $9.90) (218,500 parts x $9.70) Direct labour (41,000 hrs. x $14.40 ) (43,500 hrs. x $15.00 ) Variable overhead (205,000 parts x $ 3.90) (218,500 parts x $ 4.00) Fixed manufacturing expenses: 652,500 799,500 874,000 Fixed overhead 902,000 932,000 Total cost of goods sold 4,321,400 4,577,950 $ 3,673,600 $ Gross profit 4,647,050 3 2: Requirements 1. Determine the company's standard cost for one unit. 2. Prepare a flexible budget based on the actual number of PCs sold. Compute the price variance for direct materials and for direct labour. 4. Compute the efficiency variances for direct materials and direct labour. 5. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. 6. What the total flexible budget variance for Jones System's manufacturing costs? Show how the total flexible budget variance is divided into materials, labour, and overhead variances. 7. Have Jones System's managers done a good job or a poor job controlling material and labour costs? Why? 8. Describe how Jones System's managers can benefit from the standard costing system. Requirement 6. What is the total flexible budget variance for Jones 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 (14) Total flexible budget variance for manufacturing costs Direct material variances: (15) Price (16) Efficiency (17) Total material variances Direct labour variances: (18) Price (19) Efficiency (20) Total direct labour variances (21) Overhead flexible budget variance (22) Total flexible budget variance for manufacturing costs Requirement 7. Have Jones System's managers done a good job or a poor job controlling material and labour costs? Why? direct materials price variance, direct materials efficiency The variances computed in Requirements 3 and 4 suggest that the managers have done a (23) job controlling materials and labour costs. The (24) variance, and direct labour efficiency variance far outweigh the (25). direct labour price variance. Requirement 8. Describe how Jones System's managers can benefit from the standard costing system. Select five benefits managers may have from the standard costing system. Standards: (26) (27) (28) (29) (30) Requirement 7. Have Jones System's managers done a good job or a poor job controlling material and labour costs? Why? Print direct materials price variance, direct materials efficiency The variances computed in Requirements 3 and 4 suggest that the managers have done a (23) job controlling materials and labour costs. The (24). variance, and direct labour efficiency variance far outweigh the (25) direct labour price variance. Requirement 8. Describe how Jones System's managers can benefit from the standard costing system. Select five benefits managers may have from the standard costing system. Standards: (26) (27) (28) (29) (30) 1: Data Table Static Budget Actual Results (22,500 PCs) (20,500 PCs) $ 7,995,000 Sales (20,500 PCs X $390) $ 9,225,000 2,029,500 2,119,450 (22,500 PCs x $410) Variable manufacturing expenses: Direct materials (205,000 parts x $9.90) (218,500 parts x $9.70) Direct labour (41,000 hrs. x $14.40 ) (43,500 hrs. x $15.00 ) Variable overhead (205,000 parts x $ 3.90) (218,500 parts x $ 4.00 ) Fixed manufacturing expenses: 590,400 652,500 799,500 874,000 Fixed overhead 902,000 932,000 4,321,400 4,577,950 Total cost of goods sold $ Gross profit 3,673,600||$ 4,647,050 2: Requirements 1. Determine the company's standard cost for one unit. 2. Prepare a flexible budget based on the actual number of PCs sold. 3. Compute the price variance for direct materials and for direct labour. Compute the efficiency variances for direct materials and direct labour Print Requirement 8. Describe how Jones System's managers can benefit from the standard costing system. Select five benefits managers may have from the standard costing system. Standards: (26) (27) (28) (29) (30) 1: Data Table Static Budget Actual Results (22,500 PCs) (20,500 PCs) 7,995,000 Sales (20,500 PCs x $390) $ (22,500 PCs x 9,225,000 $410) 2,029,500 2,119,450 590,400 Variable manufacturing expenses: Direct materials (205,000 parts x $9.90) (218,500 parts x $9.70) Direct labour (41,000 hrs. x $14.40 ) (43,500 hrs. x $15.00 ) Variable overhead (205,000 parts x $ 3.90) (218,500 parts x $ 4.00) Fixed manufacturing expenses: 652,500 799,500 874,000 Fixed overhead 902,000 932,000 Total cost of goods sold 4,321,400 4,577,950 $ 3,673,600 $ Gross profit 4,647,050 3 2: Requirements 1. Determine the company's standard cost for one unit. 2. Prepare a flexible budget based on the actual number of PCs sold. Compute the price variance for direct materials and for direct labour. 4. Compute the efficiency variances for direct materials and direct labour. 5. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance. 6. What the total flexible budget variance for Jones System's manufacturing costs? Show how the total flexible budget variance is divided into materials, labour, and overhead variances. 7. Have Jones System's managers done a good job or a poor job controlling material and labour costs? Why? 8. Describe how Jones System's managers can benefit from the standard costing system