Use the following information to prepare a standard cost income statement for Smith Company for 2018. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) (Click the icon to view the information.) Smith Company Standard Cost Income Statement For the Year Ended December 31, 2018 Data Table - X Cost of Goods Sold (at standard) $ 361,000 Direct Labor Efficiency Variance $18,500 F Variable Overhead Efficiency Sales Revenue (at standard) 520,000 Variance 3,000 U Direct Materials Cost Variance 8,000 U Fixed Overhead Volume Variance 12,200 F Direct Materials Efficiency Variance 2,300 U Selling and Administrative Expenses 73,000 Direct Labor Cost Variance 43,000 U Variable Overhead Cost Variance 800 F Fixed Overhead Cost Variance 1,300 F Print Gross Profit Done Operating IncomeCellular Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 9,000, 10,500, and 12,500 units. The static budget was based on expected sales of 10,500 units. The company sold 12,500 units during July. Its flexible budget and actual operating income was as follows: (Click the icon to view the flexible budget.) (Click the icon to view the income statement.) i Data Table -X i Requirements X i Data Table - X Cellular Technologies 1. Prepare a flexible budget performance report for July. Cellular Technologies Flexible Budget 2. What was the effect on Cellular's operating income of selling 2,000 units 13) For the Month Ended July 31, 2018 more than the static budget level of sales? Income Statement Budget 3. What is Cellular's static budget variance for operating income? For the Month Ended July 31, 2018 Amount Vo 4. Explain why the flexible budget performance report provides more useful Sales Revenue $ 319,500 per Unit information to Cellular's managers than the simple static budget ar variance. What insights can Cellular's managers draw from this 9,000 10,500 12,500 Variable Expenses 180, 100 Units performance report? Sales Revenue $ 25 $ 225,000 $ 262,500 $ 312,500 Contribution Margin 139,400 51,000 Variable Expenses 14 126,000 147,000 175,000 Print Fixed Expenses Done 88,400 Contribution Margin 99,000 115,500 137,500 Operating Income Fixed Expenses 50,000 50,000 50,000 $ 49,000 $ 65,500 $ 87,500 Operating Income Print Done Print Done Answer.Best, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Best allocates manufacturing overhead to production based on standard direct labor hours. Best reported the following actual results for 2018: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $3,500; actual direct labor hours, 1,700. Read the requirements. Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, 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; VOH = variable overhead.) Formula Variance VOH cost variance (AC - SC) * AQ i Requirements - X VOH efficiency variance = (AQ - SQ) * SC 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable. Choose from any list or enter any number in the input fields and then click Check Answer. Print Done