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2021 BUDGET - Current Standard Predetermined Unit Costs 2021 ACTUAL COST - Current Standard Predetermined Unit Costs Pounds Per Unit Usage Measurement Cost Per Pound Cost Per Unit Pounds Per Unit Usage Measurement Cost Per Pound Cost Per Unit $ $ Plastic Parts Direct Materials: Metal Parts Direct Materials: Paint and Stickers Direct Materials: Direct Labor Hours: Manufacturing Overhead Machine Hours: 400 500 10 25 100 pounds pounds pounds hours hours $ $ S $ $ $ 2.00$ 0.50 $ 5.00 $ 20.00 $ 8.00 $ 35.50 $ 800.00 250.00 50.00 500.00 800.00 2,400.00 Plastic Parts Direct Materials: Metal Parts Direct Materials: Paint and Stickers Direct Materials: Direct Labor Hours: Manufacturing Overhead Machine Hours: 380 470 7 20 40 pounds pounds pounds hours hours 3.00 $ 2.00 $ 5.00 $ 28.00 $ 12.00 $ 50.00 $ 1,140.00 940.00 35.00 560.00 480.00 3,155.00 $ $ 2021 STANDARD COST BUDGET - Current Standard Predetermined Unit Costs 2021 ACTUAL COST - Current Standard Predetermined Unit Costs Pounds Per Unit Usage Measurement Cost Per Pound Pounds Per Unit Usage Measurement Cost Per Pound 400 pounds $ 380 pounds $ Direct Materials Price and Quantity Standard Plastic Parts Direct Materials: Purchase price, net of discounts Freight Receiving/handling Required materials Allowance for waste $ 2.00 1.50 0.25 0.25 $ $ $ Direct Materials Price and Quantity Standard Plastic Parts Direct Materials: Purchase price, net of discounts Freight Receiving/handling Required materials Allowance for waste 3.00 2.00 0.50 0.50 s 375 25 375 5 500 pounds 470 pounds Direct Materials Price and Quantity Standard Metal Parts Direct Materials: Purchase price, net of discounts Freight Receiving/handling Required materials Allowance for waste $ $ $ $ 0.50 0.40 0.05 0.05 Direct Materials Price and Quantity Standard Metal Parts Direct Materials: Purchase price, net of discounts Freight Receiving/handling Required materials Allowance for waste non 2.00 1.50 0.25 0.25 450 50 450 20 10 pounds pounds $ Direct Materials Price and Quantity Standard Paint and Stickers Direct Materials: Purchase price, net of discounts Freight Receiving/handling Required materials Allowance for waste islas su 5.00 4.25 0.50 0.25 Direct Materials Price and Quantity Standard Paint and Stickers Direct Materials: Purchase price, net of discounts Freight Receiving/handling Required materials Allowance for waste 5.00 4.25 0.50 0.25 $ $ $ 5 No 25 hours 20.00 20 hours $ 15.00 Direct Labor Price and Quantity Standard Direct Labor Hours: Hourly wage rate Cost of living adjustments Payroll taxes Other benefits Actual production Breaks Setup and cleaning 1.00 2.00 2.00 Direct Labor Price and Quantity Standard Direct Labor Hours: Hourly wage rate Cost of living adjustments Payroll taxes Other benefits Actual production Breaks Setup and cleaning 28.00 21.00 1.00 4.00 2.00 20 " 15 2 w 100 hours $ 40 hours $ Manufacturing Overhead Quantity Standard Manufacturing Overhead Manufacturing Insurance Manufacturing Plant Utilities Manufacturing Cleanup 14 times Direct Labor Hours noun 8.00 2.00 5.00 1.00 Manufacturing Overhead Quantity Standard Manufacturing Overhead Manufacturing Insurance Manufacturing Plant Utilities Manufacturing Cleanup 2 times Direct Labor Hours 12.00 2.00 7.00 3.00 $ Cost Per Unit 2021 ACTUAL STANDARD COST BUDGET VARIANCE - Current Standard Predetermined Unit Costs Favorable is Postive | Unfavorable is Negative Pounds Per Unit Usage Measurement Cost Per Pound Plastic Parts Direct Materials: 20 pounds $ Metal Parts Direct Materials: (1.00) 30 Paint and Stickers Direct Materials: pounds (1.50) $ 3 pounds $ Direct Labor Hours: 5 hours $ (8.00) $ Manufacturing Overhead Machine Hours: 60 hours $ (4.00) $ $ (14.50) un nu un (340.00) (690.00) 15.00 (60.00) 320.00 (755.00) 2021-2022 STANDARD VS. ACTUAL COST BUDGET VARIANCE - Current Standard Predetermined Unit Costs Pounds Per Unit Usage Measurement Cost Per Pound 20 pounds Direct Materials Price and Quantity Standard Plastic Parts Direct Materials: Purchase price, net of discounts Freight Receiving/handling Required materials Allowance for waste $ $ $ $ $ (1.00) (0.50) (0.25) (0.25) 0 20 30 pounds Direct Materials Price and Quantity Standard Metal Parts Direct Materials: Purchase price, net of discounts Freight Receiving/handling Required materials Allowance for waste $ $ $ $ (1.50) (1.10) (0.20) (0.20) o 30 3 pounds $ noon $ OM 3 Direct Materials Price and Quantity Standard Paint and Stickers Direct Materials: Purchase price, net of discounts Freight Receiving/handling Required materials Allowance for waste Direct Labor Price and Quantity Standard Direct Labor Hours: Hourly wage rate Cost of living adjustments Payroll taxes Other benefits Actual production Breaks Setup and cleaning 5 hours $ $ $ (8.00) (6.00) (2.00) u 5 60 hours (4.00) Manufacturing Overhead Quantity Standard Manufacturing Overhead Manufacturing Insurance Manufacturing Plant Utilities Manufacturing Cleanup 4 times Direct Labor Hours onunun $ $ $ $ (2.00) (2.00) 2 Sundancer Boats, Inc. manufactures paddle boats in various colors for 5-Star Resorts. Prepare the 2021 Income Statement based on the following information: 1. Luckily, the company got word of the huge increase in plastic and metal prices. They adjusted their actual unit selling price for the year to $4,750. However, they didn't sell the budgeted 675, they only sold 625 boats. 2. Based off the ACTUAL COSTS determined in 2021, compute the Supplemental Schedule for COGS. *Hint* Use Actual Standard Costs from Tab CH24 Standard Costs Monaco 3. Fixed cost for 2021 were as follows: Building and Equipment Depreciation Company Insurance Company Advertising Administrative Salaries and Benefits $65,000 $24,000 $125,000 $350,000 Sundancer 4. Management had to borrow some money from the bank to start the business five years ago. As a result, they still have some interest expense. It is $10,000 per year. Management anticipates a 21% tax rate for the next several years. Sundancer, Inc. Income Statement For the Year Ended December 31, 2021 Sales *Cost of goods sold Gross profit Selling and administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net Income Unit Cost Total *Supplemental Schedule - COGS Cost per Unit Cost Element Plastic Parts Direct materials: Metal Parts Direct materials: Paint and Stickers Direct materials: Direct labor Manufacturing overhead - machine hours Total COGS per Unit Quantity pounds pounds pounds hour hour