Turkey Corp establied the following monthly standards per unit of its 10,000 unit budgeted production. Input Price Input Qty per Unit of Output Total Budget Cost Per Unit Cost at 10,000u at 10,000u Direct Material Direct Labor $4.40 per lb 11 $48.40 $484,000.00 Fixed Overhead $31.00 $210,000 per hour 0.6 $18.60 $186,000.00 total n/a $21.00 $210,000.00 This month Turkey Corp had the following results. Direct Material 1 2 3 Volume Variance Direct Labor Fixed Overhead Output Activity 105,000 lbs Actual Cost $ 465,000 4,900 hrs $ 154,350 $ 195,000 9,850 units $ 814,350 Given the actual level of output for the month, how much fixed overhead should the company have incurred? (i.e. What is the flexible budget level of fixed overhead?) 484000 Fixed Overhead in Flex Budget 476740 465000 462004 4.4 11 10000 $210,000 4.428571429 9850 Complete the following table for Direct Material (use formulas or keep at least 3 demical points). Direct Material Output Quantity (units) x Input Rate (lbs/unit) x Input Price ($/lb) = Total Cost ($) $ $ Actual* Input Flex Budget 9,850 10.660 4.429 $ 465,000.00 $ 9,850 10.660 4.400 $ 462,004.00 $ Output Flex Budget (Standard) Master (Static) Budget* 9,850 11.000 4.400 $ 10,000 11.000 4.400 476,740.00 $ 484,000.00 *Verify that your total Actual Cost and total Master Budget Cost equal the Totals from the top! What are the Direct Material Variances? Complete both methods. Indicate if they are Favorable or Unfavorable. Method 1 Method 2 Efficiency Variance Method 1 "Output Flex Budget": the standard amount they would have expected to pay for the actual output - "Master (Static) Budget": the amount they originally expected to pay for expected output = Volume Variance [+ More Cost Spent / - Less Cost Spent] (For U ) How many extra or (fewer) units were requested by the Sales Manager? x How much direct material ($) did they expect to spend per unit? = Volume Variance [+ More Cost Spent / - Less Cost Spent] (For U) "Input Flex Budget": the amount they would have expected to pay on the pounds of direct material used - "Output Flex Budget": the standard amount they would have expected to pay to make the actual output = Efficiency Variance [+ More Material Used / - Less Material Used]