Tools Data Window Help Excel File Edit View Insert Format Ch 8 H Auto Save OFF Review Developer Formulas Data View Home Insert Draw Page Layout ag v General 14 A A Calibri $ ~ % 9 Paste B I A Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover them? A1 4 x fx Problem A B C D E G H A Check Your Work Problem A Andrea Company is preparing its planned operating budget for the year using the following data: 2 Expected sales volume (in units) 49,000 w Budgeted sales price per unit $94.00 Variable manufacturing costs per unit: Direct materials $32.00 8 Direct Labor $11.00 9 Manufacturing Overhead $16.00 10 11 Fixed manuf. overhead per year $86,000 12 13 Selling and administrative expenses: 14 Variable amount per unit $8.00 15 Fixed amount per year $369,000 The actual sales results for Andrea Company, as of December 31, are shown below. Andrea Company 16 produced and sold 46,000 units this period. 7 Sales (actual 46,000 units x $98 actual price per unur $4,508,000 18 Variable costs: 19 Direct materials (actual $36 per unit) 1,656,000 20 Direct labor (actual $8 per unit) 368,000 21 Var, Mig Overhead (actual $19 per unit) 874,000 Variable Selling and Admin expenses (actual 322,000 22 $7 per unit) 23 Total Variable Costs 3,220,000 4 Contribution Margin 25 1,288,000 Fixed Manufacturing Overhead 86,800 4 Homework Settings + Select destination and press ENTER or choose Paste DEC 32 4 MacBook Air escExcel File Edit View Insert Format Tools Data Window Help Auto Save OFF Ch 8 Homework Home Insert Draw Page Layout Formulas Data Review View Developer Calibri v 14 A A ab General Paste B I UVV OVA $ ~ % 9 -0o Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover them? A1 x v fx Problem A B , C E G H 20 Direct labor (actual $8 per unit) 368,000 21 Var. Mfg Overhead (actual $19 per unit) 874,000 Variable Selling and Admin expenses (actual 322,000 22 $7 per unit) 23 Total Variable Costs 3,220,000 24 Contribution Margin 1,288,000 25 Fixed Manufacturing Overhead 86,800 26 Fixed Selling and Admin expenses 373,000 27 Total Fixed Costs 459,800 8 Operating Income 828,200 29 30 Required: a. Prepare a Budgeted Income Statement (use the multi-step income statement) for the year ended December 31 using the 31 budgeted sales volume and sales price. b. Prepare a Flexible Budget Performance Report (use the contribution margin format) showing a flexible budget at the ACTUAL units, the actual results, and any variance. Analyze the efficiency of the operations and explain the results. 32 33 34 Andrea Company 35 Budgeted Income Statement 36 For Year Ended December 31 37 Hint ? 38 Sales 39 Cost of Goods Sold: 40 41 42 43 44 45 Gross Profit Homework Settings + Select destination and press ENTER or choose Paste DEC 32 4 MacBook AirExcel File Edit View Insert Format Tools Data Window Help Auto Save OFF Ch 8 Homework Home Insert Draw Page Layout Formulas Data Review View Developer Calibri 14 ab General Paste I UV FE $ v % " For Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover them? A1 4 x v fx Problem A A B ,Z D G H 34 Andrea Company 35 Budgeted Income Statement 36 For Year Ended December 31 37 Hint? 38 Sales 39 Cost of Goods Sold: 40 41 42 43 44 45 Gross Profit 46 Selling and Administrative expenses: 47 48 49 50 Net 51 Self Check: 52 53 Andrea Company 54 Flexible Budget Performance Report 55 For Year Ended December 31 Remember to include F for FledBudget @ Favorable and U for 46,000 actual Actual Variance Unfavorable with the 56 units variance amount! 57 Sales 58 Self Check: Budget Hint? 59 Variable Costs: 60 61 62 63 64 Total Variable Costs 65 Self Check: 66 Contribution margin Homework Settings + Select destination and press ENTER or choose Paste DEC 32 4 MacBook AirExcel File Edit View Insert Format Tools Data Window Help Auto Save OFF DCh 8 Homework Home Insert Draw Page Layout Formulas Data Review View Developer Calibri v 14 A A ab v General Paste B I U V . F V VAV $ 19 00 -70 Conditional For Formatting as Ta Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover them? A1 4 x v fox| Problem A A B , C D E F G H 61 62 63 64 Total Variable Costs 65 Self Check: 66 Contribution margin 67 Fixed costs: 68 69 70 Total Fixed Costs 71 Self Check : 72 Net Income 73 Self Check: 74 75 76 77 Analysis (see homework instructions): 78 79 80 81 82 83 85 87 88 9 Problem B SHOW and LABEL ALL WORKI Tahoe Company has prepared the standard cost for a manufactured product based on 90,000 units and consists of: 90 91 Direct materials (0.75 pounds x $10 per pound) $7.50 per unit 92 Direct Labor (1.5 hours x $18 per hour) $27.00 per unit 93 Variable mfg overhead (applied per unit) $4.00 per unit 94 Fixed Mig Overhead ($142.000 in total) $1.58 per unit 4 D Homework Settings + Select destination and press ENTER or choose Paste DEC 32 4 MacBook AirExcel File Edit View Insert Format Tools Data Window Help Auto Save OFF JCh 8 Homework Home Insert Draw Page Layout Formulas Data Review View Developer Calibri 14 ab v General Paste BI UV $ v % 9 00 .00 -70 Cond Form Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover them? A1 4 x fx Problem A A B , D G 88 89 Problem B SHOW and LABEL ALL WORK! Tahoe Company has prepared the standard cost for a manufactured product based on 90,000 units and consists of: 90 91 Direct materials (0.75 pounds x $10 per pound) $7.50 per unit 92 Direct Labor (1.5 hours x $18 per hour) $27.00 per unit 93 Variable mfg overhead (applied per unit) $4.00 per unit 94 Fixed Mfg Overhead ($142,000 in total) $1.58 per unit 95 Total Standard cost per unit $40.08 During May, a total of 70200 pounds of material was purchased at $8 per pound and 64400 pounds of material were used. Tahoe Company produced 92,000 units in May with the following costs: 96 97 Direct Labor (140760 hours x $20 per hour) $2,815,200 98 Variable Manufacturing overhead (applied per unit) $552,000 99 Fixed Manufacturing Overhead $137,200 100 101 Required: 102 a. Calculate the materials price and usage variances. 103 b. Calculate the labor rate and efficiency variances. 104 c. Calculate the variable overhead spending and efficiency variances. 105 d. Calculate the fixed overhead spending variate. 106 07 Homework Note: For Material and Labor STANDARD use the ACTUAL number of units produced x standard per unit (you can use either the amount per unit x standard rate or the 108 standard cost per unit given instead...example, Direct materials standard is 0.25 pounds per unit x 109 $8 per pound or $2.00 per UNIT. Remember, this will tell you the material standard cost is $2 110 per UNIT and is not the cost per pound purchased. 111 If Variable overhead is applied based on units produced, use the standard cost provided for each 112 unit produced. Calculate STANDARD for Variable OH using standard volume x standard cost 113 per unit. 114 115 Remember, Variances must be a POSTIVE NUMBER and must have F for Favorable or U for Unfavorable; otherwise it is not a variancel 4 D Homework Settings Select destination and press ENTER or choose Paste DEC 32 4 MacBook Air esc 20 888Excel File Edit View Insert Format Tools Data Window Help Auto Save OFF JCh 8 Homework Home Insert Draw Page Layout Formulas Data Review View Developer Calibri 14 General Paste B I UVV MVA $ ~ % 9 60 00 Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover them? A1 X V fx | Problem A A B , C D F 114 115 Remember, Variances must be a POSTIVE NUMBER and must have F for Favorable or U for Unfavorable; otherwise it is not a variancel 116 117 Direct Material Variances: Hint? 118 Material price variance 119 Actual Cost (purchased) Flexible Budget 120 121 122 123 124 Direct material price variance= 125 126 Hint? 127 Material quantity (or usage) variance 128 Flexible Budget Standard (or budget) 129 130 131 132 133 Direct material qty (or usage) var = 134 135 136 137 Direct Labor Variances: 138 Labor efficiency variance 139 Labor rate variance 140 Actual DL Cost Flexible Budget Standard (or budget) 141 142 143 144 145 146 Labor rate variance = 147 Labor efficiency variance = 148 Homework Settings + Select destination and press ENTER or choose Paste DEC 32 X 4 MacBook Air esc 20 888 F1 F2 F3 F4Excel File Edit View Insert Format Tools Data Window Help I Ch 8 Homework Auto Save OFF Review View ome Insert Page Layout Formulas Data Developer Draw 14 A A General Calibri Paste A $ ~ % 9 100 Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover them? A1 4 x fx Problem A A C D G H 150 151 Variable OH Variances: Hint? 152 Variable OH efficiency variance 153 Variable OH spending rate variance 154 Actual Var. OH Cost Flexible Budget Standard (or budget) 155 156 157 158 159 160 Variable OH Spending rate var = 161 Var OH Efficiency Variance = 162 163 164 165 Fixed OH Variance: 166 Fixed Overhead Spending Variance 167 Actual Cost Standard (or budget) 168 169 170 171 172 Fixed OH Spending Var = 173 174 Check your work: (Enter your variances from above like this $100 For $1300 U or $25000 F ) This is for you only and is not graded. 175 Hint ? 176 Problem B SELF CHECK 177 Material Price Variance 178 Material Usage Variance 179 Labor Rate Variance 180 Labor Efficiency Variance 181 Variable OH Spending Variance 182 Variable OH Efficiency Variance 183 Fixed OH Spending Variance 184 Homework Settings + Select destination and press ENTER or choose Paste DEC 32 4 MacBook Air esc0 Auto Save OFF DCh 8 Homew me Insert Draw Page Layout Formulas Data Review View Developer Calibri 14 A ab General Paste B I U v FE $ ~ % 9 Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover them? 1 x fx Problem A A B C G H 35 36 Problem C SHOW ALL WORK! 87 Roseanne Company showed the following standard costs for each unit produced: 88 Direct materials per unit 2 pounds x $14 per pound 89 Direct labor per unit 2.5 hours x $19 per hour 190 The company produced 13200 units in August and had the following data: 191 Materials purchases 21120 pounds 192 Materials used 23009 pounds x $14.8 per pound 193 Direct labor 26400 hours at total cost of $528000 194 Required: Compute the material and labor variances. Discuss possible explanations for each variance calculated (meaning, which might 195 have happened?) 196 197 Direct Material Variances: 198 199 Material price variance 200 Actual Cost (purchased) Flexible Budget 201 202 203 204 205 Direct material price variance = 206 207 Material quantity (or usage) variance 208 Flexible Budget Standard (or budget) 209 210 211 212 213 Direct material qty (or usage) var = 214 215 Direct Labor Variances: 216 Labor efficiency variance Homework Settings + Select destination and press ENTER or choose Paste DEC 32 4 MacBook Air esc 20 000 F1 F2 F3 F 4 F5 F6Excel File Edit View Insert Format Tools Data Window Help Auto Save OFF Ch 8 Homework Home Insert Draw Page Layout Formulas Data Review View Developer Calibri 14 ab General Paste BI UV .HV V A $ ~ % 9 00 .00 Cor For Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover them? A1 4 X V fx Problem A A B H 212 213 Direct material qty (or usage) var = 214 215 Direct Labor Variances: 216 Labor efficiency variance 217 Labor rate variance 218 Actual DL Cost Flexible Budget Standard (or budget) 219 220 221 222 223 224 Labor rate variance = 225 Labor efficiency variance = 226 Analysis (What are possible reasons for variances?): 227 228 229 230 . Questions adapted from "Accounting Principles: A Business Perspective, Financial Accounting" A Textbook Equity Open College 231 Textbook originally by Hermanson, Edwards, and Maher 232 233 234 235 236 237 238 4 D Homework Settings + Select destination and press ENTER or choose Paste DEC 32 4 MacBook Air