Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

- x Data Table 6,500 units Expected production and sales Expected selling price per unit $ 680 Total fixed costs $ 1,350,000 Print Done -

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

- x Data Table 6,500 units Expected production and sales Expected selling price per unit $ 680 Total fixed costs $ 1,350,000 Print Done - Data Table Standard Quantity Standard Price Standard Unit Cost Direct materials 12 pounds $9 per pound $108 Direct manufacturing labor 3.8 hours $30 per hour $114 During 2017, actual number of units produced and sold was 5,800, at an average selling price of $730. Actual cost of direct materials used was $633,600, based on 72,000 pounds purchased at $8.80 per pound. Direct manufacturing labor-hours actually used were 19,000, at the rate of $34.30 per hour. As a result, actual direct manufacturing labor costs were $651,700. Actual fixed costs were $1,190,000. There were no beginning or ending Print Done Naples Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2017: (Click the icon to view the static budget data.) Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor: (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the sales-volume variance and flexible-budget variance for operating income. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Flexible-Budget Flexible Results Variance Budget 5800 0 5800 Output units Revenues 4234000 290000 F 3944000 Direct materials 633600 7200 F 626400 Direct manufacturing labor 651700 9500 U 661200 1190000 160000 Fixed costs U 1350000 2475300 162300 Total costs U 2637600 Operating income 1758700 452300 1306400 Data Table Sales-Volume Static Variance Budget 700 6500 F 204000 F 4148000 626400 1350000 1000 Requirement 2. Compute price and efficiency variances for direct materials and direct manufacturing labor. Compute the price and efficiency variances for direct materials. Label each variance as favorable (F) or unfavorable (U). Price variance 72000 U Efficiency variance 85500U Compute the price and efficiency variances for direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U). - x Data Table 6,500 units Expected production and sales Expected selling price per unit $ 680 Total fixed costs $ 1,350,000 Print Done - Data Table Standard Quantity Standard Price Standard Unit Cost Direct materials 12 pounds $9 per pound $108 Direct manufacturing labor 3.8 hours $30 per hour $114 During 2017, actual number of units produced and sold was 5,800, at an average selling price of $730. Actual cost of direct materials used was $633,600, based on 72,000 pounds purchased at $8.80 per pound. Direct manufacturing labor-hours actually used were 19,000, at the rate of $34.30 per hour. As a result, actual direct manufacturing labor costs were $651,700. Actual fixed costs were $1,190,000. There were no beginning or ending Print Done Naples Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2017: (Click the icon to view the static budget data.) Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor: (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the sales-volume variance and flexible-budget variance for operating income. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Flexible-Budget Flexible Results Variance Budget 5800 0 5800 Output units Revenues 4234000 290000 F 3944000 Direct materials 633600 7200 F 626400 Direct manufacturing labor 651700 9500 U 661200 1190000 160000 Fixed costs U 1350000 2475300 162300 Total costs U 2637600 Operating income 1758700 452300 1306400 Data Table Sales-Volume Static Variance Budget 700 6500 F 204000 F 4148000 626400 1350000 1000 Requirement 2. Compute price and efficiency variances for direct materials and direct manufacturing labor. Compute the price and efficiency variances for direct materials. Label each variance as favorable (F) or unfavorable (U). Price variance 72000 U Efficiency variance 85500U Compute the price and efficiency variances for direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sovereign Debt Crisis The New Normal And The Newly Poor

Authors: D. Chorafas

1st Edition

0230298400, 9780230298408

More Books

Students also viewed these Accounting questions

Question

What are your research interests?

Answered: 1 week ago