Operating Results(For July)Quantity (units)RevenueVariable manufacturing costVariable Selling, General andAdministrative costContribution marginFixed manufacturing costFixed Selling, General andAdministrative costOperating profitQuantityRevenueVariable manufacturing costVariable Selling, General andAdministrative costContribution marginequired:repare a profit variance analysis for the Superior Plant for July. (Do not round intermediate calculations. Indicate the effect of eachariance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)Fixed manufacturing costFixed Selling, General andAdministrative costOperating profitActuals9,540$ 1,745,800756,394110,440878,966217,040$9,540$ 1,745,800756,394374,000$ 287,926110,440$ 878,966217,040374,000$ 287,926ManufacturingVariancesProfit Variance AnalysisSelling, General andAdministrativeVariancesSales Price VarianceFlexible BudgetSales Activity VarianceMasterBudget8,140$1,546,600586,080$$97,680862,840206,00364,00292,84 Problem 16-78 (Algo) Profit Variance Analysis (LO 16-2, 3, 4)Harlow Parts produces a single product at its Superior Plant. The master budget for July follows:Harlow PartsSuperior PlantMaster Budget(For July)QuantityRevenueVariable manufacturing costVariable Selling, General andAdministrative costContribution marginHarlow PartsSuperior PlantOperating Results(For July)Fixed manufacturing costFixed Selling, General andAdministrative costOperating profitThe following operating income statement shows the actual results for JulyQuantity (units)RevenueVariable manufacturing costVariable Selling, General andAdministrative costContribution margin8,140$ 1,546,600586,08097,680Fixed manufacturing costFixed Selling, General andAdministrative costOperating profit$ 862,840206,000364,000$ 292,8409,540$ 1,745,800756,394110,440$ 878,966217,040374,000$ 287,926Required:Prepare a profit variance analysis for the Superior Plant for July. (Do not round intermediate calculations. Indicate the effect of eachvariance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

A flexible budget is a budgeting tool that adjusts to changes in activity levels or other variables…

Harlow Parts produces a single product at its Superior Plant. The master budget for July follows: Harlow Parts Superior Plant Master Budget (For July) Quantity Revenue Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margin Quantity (units) Revenue 8,140 $ 1,546,600 586,088 97,680 $ 862,848 206,000 364,000 $ 292,840 Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit The following operating income statement shows the actual results for July Harlow Parts Superior Plant Operating Results (For July) 9,540 $ 1,745,800

Harlow Parts produces a single product at its Superior Plant. The master budget for July follows: Harlow Parts Superior Plant Master Budget (For July) Quantity Revenue Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margin Quantity (units) Revenue 8,140 $ 1,546,600 586,088 97,680 $ 862,848 206,000 364,000 $ 292,840 Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit The following operating income statement shows the actual results for July Harlow Parts Superior Plant Operating Results (For July) 9,540 $ 1,745,800

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 1PB: Direct materials and direct labor variance analysis Lenni Clothing Co. manufactures clothing in a...

See similar textbooks

Similar questions

Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the following actual costs: Required: 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. 2. What if Nashler Companys actual direct materials cost were 1,175,040? How would that affect the variance for direct materials? The total cost variance?
Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is expected to amount to 20,000. The standard cost for a unit of the companys product estimates the variable overhead as follows: The actual data for the period follow: Using the four-variance method, calculate the overhead variances. (Hint: First compute the budgeted fixed overhead rate.)
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer to the information for Pizza Vesuvio on the previous page. Assume that this information was used to construct the following formula for monthly labor cost. TotalLaborCost=5,237+(7.40EmployeeHours) Required: Assume that 675 employee hours are budgeted for the month of September. Use the total labor cost formula for the following calculations: 1. Calculate total variable labor cost for September. 2. Calculate total labor cost for September.
Factory overhead cost budget Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.
Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of activity and the actual operating results listed below for the 29,000- unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 29,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
Sulert, Inc., produces and sells gel-filled ice packs. Sulerts performance report for April follows: Required: 1. Calculate the contribution margin variance and the contribution margin volume variance. 2. Calculate the market share variance and the market size variance. (CMA adapted)
(Appendix) Calculating factory overhead: four variances Atlanta Adhesives Inc. budgets 15,000 direct labor hours for the year. The total overhead budget is expected to amount to 42,000. The standard cost for a unit of the companys product estimates the variable overhead as follows: The actual data for the period follow: Using the four-variance method, calculate the overhead variances. (Hint: First compute the budgeted fixed overhead rate.)
Direct materials and direct labor variance analysis Lenni Clothing Co. manufactures clothing in a small manufacturing facility. Manufacturing has 25 employees. Each employee presently provides 40 hours of productive labor per week. Information about a production week is as follows: Instructions Determine (A) the standard cost per unit for direct materials and direct labor; (B) the price variance, quantity variance, and total direct materials cost variance; and (C) the rate variance, time variance, and total direct labor cost variance.
Required: a) Using Activity Based Costing, calculate the rate for each cost driver. b) Using activity based budgeting, prepare a budgeted yearly operating statement for Aero3D Ltd. Show the following separately, within the statement. i. The budgeted output for each product per year; ii. The contribution to profits for each product and in total before charging activity based costs; iii. The profit for each product and in total after charging activity based costs but before charging core costs (non-activity based costs); iv. The total profit after charging core based costs.
Example-2Variable manufacturing overhead variance analysis. The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Sourdough Bread Company:Direct manufacturing labor use 0.02 hours per baguetteVariable manufacturing overhead $10.00 per direct manufacturing labor-hourThe Sourdough Bread Company provides the following additional data for the year ended December 31, 2017:Required:Planned (budgeted) outputActual productionDirect manufacturing laborActual variable manufacturing overhead3,100,000 baguettes 2,600,000 baguettes 46,800 hours$617,7601. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Sourdough Bread budgeting?)2.…
Harlow Parts produces a single product at its Superior Plant. The master budget for July follows: Harlow Parts Superior Plant Master Budget (For July) Quantity Revenue Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margin Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit The following operating income statement shows the actual results for July: Quantity (units) Revenue Harlow Parts Superior Plant Operating Results (For July) Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margin Fixed manufacturing cost Fixed.Selling, General and Administrative cost Operating profit Varishla 9,900 $ 1,615,000 947,925 99,800 $ 567,275 237,600 122,000 $ 207,675 11,300 $ 1,748,800 1,157,572 112,840 $ 478,388 244,080 168,000 $ 66,308 iarhaad in sualind on the basis of machine havre The standard an nhant fallavan