Top managers of Juda Industries predicted 2018 sales of 14,400 units of its product at a unit price of $9.00. Actual sales for the year were 14,300 units at $10.00 each. Variable costs were budgeted at $2.40 per unit, and actual variable costs w $2.50 per unit. Actual fixed costs of 547,000 exceeded budgeted fixed costs by 55,300. Prepare Juda's flexible budget performance report. What variance contributed most to the year's favorable results? What caused this variance? Prepare a flexible budget performance report for the year. First, complete the flexible budget performance report through the contribution margin line, then complete the report through the operating income line. Finally, compute the total variance (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Juda Industries Flexible Budget Performance Report For the Year Ended December 31, 2018 1 2 3 4 5 (1)-(3) (3) - (5) Sales Flexible Budget Amounts Actual Budget Flexible Volume Static Per Unit Variance Budget Variance Budget Results 14300 Units Sales Revenue 9.00 F 143000 35750 Variable Costs 2.50 U Contribution Margin FY Great Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 141,000 square feet of extruded vinyl purchased at $1.10 per square foot. Production required 420 direct labor hours that cost $15.00 per hour. The direct materials standard was seven square feet of vinyl per fender, standard cost of $1.15 per square foot. The labor standard was 0.023 direct labor hour per fender, at a standard cost of $14.00 per hour. Read the requiremen Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance Direct labor cost variance Best, Inc. produced 1,000 units of the company's product in 2018. The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $1.05 per yard. The accounting records showed that 2,600 yards of cloth were used and the company paid $1.10 per yard. Standard time was two direct labor hours per unit at a standard rate of $10.25 per direct labor hour. Employees worked 1,400 hours and were paid $9.75 per hour. Read the requirements Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do the following
