XYZ uses 1.5 pounds of wood to make baseball bats. The price of wood is $7.00 per pound. 2 direct labor hours are required to make a baseball bat and the direct labor rate is $11.00 per hour. Variable overhead is assigned based on direct labor hours at a rate of $1.50 per direct labor hour. Baseball bats selling price is $55.00. Fixed overhead (selling and administrative expenses) is budgeted to be $400,000. At the end of year XYZ sold 30,000 units with sales ascending to $1,675,000. Materials used were 46,000 pounds and the materials cost were $7.05 per pound. Direct Labor hours used to produce 30,000 units was 59,800 hours and the rate paid was $10.95 per hour. Variable Overhead was $94,000 and fixed overhead (selling and administrative expenses) was 407,000 for a total overhead incurred of $501,000.

Compute the Standard cost of 1 baseball bat

Compute the Pre-tax income if XYZ budgeted sales are 35,000 units

Compute the Contribution Margin if XYZ budgeted sales are 30,000 units

Compute total variable cost if XYZ budgeted sales are 25,000 units

Compute Sales Variance

Compute Total Variable Cost Variance

Compute Pre-tax Income variance

Compute Direct Material Price Variance

Compute Direct Material Quantity Variance

Compute Direct Labor Efficiency Variance

Compute Total Overhead Variance

Compute Variable Overhead Spending Variance

Compute Variable Overhead Efficiency Variance