The master budget at Windsor, Inc., last period called for sales of 85,000 units at $24.50 each. The costs were estimated to be $8.40 variable per unit and $550,000 fixed. During the period, actual production and actual sales were 95,000 units. The selling price was $25.40 per unit. Variable costs were $12.20 per unit. Actual fixed costs were $550,000.

Required:

Prepare a flexible budget for Windsor.

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The master budget at Windsor, Inc., last period called for sales of 100,000 units at $23.00 each. The costs were estimated to be $11.00 variable per unit and $550,000 fixed. During the period, actual production and actual sales were 102,000 units. The selling price was $23.40 per unit. Variable costs were $12.60 per unit. Actual fixed costs were $550,000.

Required:

Prepare a profit variance analysis like the one in Exhibit 16.5. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Leave no cells blank - be certain to enter "0" wherever required.)

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Wagner, Inc., manufactures truck tires. The following information is available for the last operating period.

Wagner produced and sold 35,000 tires for $59 each. Budgeted production was 39,000 tires.

Standard variable costs per tire follow:

Direct materials: 5 pounds at $3.00$15.00

Direct labor: .70 hours at $12.50 8.75

Variable production overhead: .30 machine-hours at $19 per hour 5.70

Total variable costs$29.45

Fixed production overhead costs:

Monthly budget$585,000

Fixed overhead is applied at the rate of $15 per tire.

Actual production costs:

Direct materials purchased and used: 186,000 pounds at $2.70$502,200

Direct labor: 22,000 hours at $12.80 281,600

Variable overhead: 11,700 machine-hours at $19.30 per hour 225,810

Fixed overhead 655,000

Required:

(a)

Prepare the cost variance analysis for each variable cost for Wagner. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

(b)

Prepare the fixed overhead cost variance analysis. (Indicate the effect of the variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

(c) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period. (If no entry is required for an event, select "No journal entry required" in the first account field.)

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The following information is provided concerning the operations of Tolstoy Corporation for the current period:

Actual (based on

actual of 180 units)Master Budget (based

on budgeted 200 units)

Sales revenue$5,030 $5,400

Less

Manufacturing costs

Direct labor 761 800

Materials 610 700

Variable overhead 360 450

Marketing 320 350

Administrative 300 300

Total variable costs$2,351 $2,600

Contribution margin$2,679 $2,800

Fixed costs

Manufacturing 242 250

Marketing 517 500

Administrative 498 500

Total fixed costs$1,257 $1,250

Operating profits$1,422 $1,550

There are no inventories.

Required:

Prepare a sales activity variance analysis for Tolstoy Corporation like the one in Exhibit 16.4. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)