Saved Ch 21 Homework QS 21-8 Materials variances LO P2 Tercer reports the following for one of its products. 3.33 points Direct materials standard (4 lbs. $2 per lb.) Actual direct materials used (AQ) Actual finish 1 units produced Actual cost ou direct materials used 8 per finished unit 300,000 lbs. 60,000 units $535,000 AQ = Actual Quantity SQ = Standard Quant..y AP = Actual Price SP = Standard Price Print Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. Actual Cost References Standard Cost SQ AQ 300,000 300,000 O Favorable Unfavorable Unfavorable Ch 21 Homework Saved Problem 21-2A Preparation and analysis of a flexible budget performance report LO P1, P2, A1 3.34 points Phoenix Company's 2017 master budget Included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 $3,000,000 $975,000 225,000 60.000 300,000 195,000 200,000 1,955,000 1.045,000 Cost of goods sold Direct materials Direct labor Machinery repairs (variable cost) Depreciation-Plant equipment (straight-line) Utilities ($45,000 is variable) Plant management salaries Gross profit Selling expenses Packaging Shipping Sales salary (fixed annual amount) General and administrative expenses Advertising expense Salaries Entertainment expense Income from operations References 75.000 250,000 430,000 125,000 241.000 90.000 456.000 159,000 $ Phoenix Company's actual income statement for 2017 follows. $3,648,000 PHOENIX COMPANY Statement of Income from Operations Por Year Ended December 31, 2017 Sales (18,000 units) Cont of goods sold Direct materials $1,185,000 Direct labor 278,000 Machinery repairs (variable cost) 63,000 Depreciation-Plant equipment (traight-line) 300,000 Utilities (fixed cost is $147,500) 200,500 Plant management salaries 210,000 2,236 500 Selling expenses Packaging shipping Sales salary (annual) General and administrative expenses 87.500 118,500 260.000 474,000 salaries Entertainment expense Income from operations 466,500 471.000 Saved 1 Homework Income from operations $ 471,000 Required: 1. Prepare a flexible budget performance report for 2017. PHOENIX COMPANY Flexible Budget Performance Report For Year Ended December 31, 2017 Flexible Budget Actual Results eBook Variances Fav. / Unfav. Favorable Print Unfavorable References Sales Variable costs Direct labor Direct materials Machinery repairs Utilities Shipping Packaging Unfavorable Favorable Favorable Favorable Favorable Total variable costs Unfavorable Favorable Fixed costs Depreciation Plant equipment (straight-line) Utilities Plant management salaries Sales salary Advertising expense Salaries Entertainment expense No variance Favorable Unfavorable Unfavorable Unfavorable No variance Unfavorable Total fixed costs Income from operations Unfavorable Favorable
