3. Solve the task. Describe the solution in detail. Construct a table (if necessary). Draw a conclusion based on the results of the calculations. /16 points/ 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 200A: Expected production and sales Direct materials Direct manufacturing labor Total fixed costs 6,000 units 72,000 pounds 21,000 hours $1,200,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct man- ufacturing labor: Standard Quantity |Standard Price Standard Unit Cost $120 Direct materials Direct manufacturing labor During 200A, actual number of units produced and sold was 5,500. Actual cost of direct materials used was S668,800, based on 70,400 pounds purchased at $9.50 per pound. Direct manufacturing labor- hours actually used were 18,500, at the rate of $51.50 per hour. As a result, actual direct manufacturing labor costs were $952,750. Actual fixed costs were $1,180,000. There MGKE no beginning or ending 12 pounds $10 per pound | 3.5 hours $50 per hour $175 inventories. 1. Prepare a flexible budget for that level of activity. 2. Provide variance analysis, sales volume variance and flexible budget variance.
3. Solve the task. Describe the solution in detail. Construct a table (if necessary). Draw a conclusion based on the results of the calculations. /16 points/ 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 200A: Expected production and sales Direct materials Direct manufacturing labor Total fixed costs 6,000 units 72,000 pounds 21,000 hours $1,200,000 Standard quantities, standard prices, and standard unit costs follow for direct materials and direct man- ufacturing labor: Standard Quantity |Standard Price Standard Unit Cost $120 Direct materials Direct manufacturing labor During 200A, actual number of units produced and sold was 5,500. Actual cost of direct materials used was S668,800, based on 70,400 pounds purchased at $9.50 per pound. Direct manufacturing labor- hours actually used were 18,500, at the rate of $51.50 per hour. As a result, actual direct manufacturing labor costs were $952,750. Actual fixed costs were $1,180,000. There MGKE no beginning or ending 12 pounds $10 per pound | 3.5 hours $50 per hour $175 inventories. 1. Prepare a flexible budget for that level of activity. 2. Provide variance analysis, sales volume variance and flexible budget variance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Solve the task that is attached
Transcribed Image Text:3. Solve the task. Describe the solution in detail. Construct a table (if necessary). Draw a conclusion
based on the results of the calculations. /16 points/
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 200A:
Expected production and sales
|Direct materials
Direct manufacturing labor
Total fixed costs
6,000 units
72,000 pounds
21,000 hours
$1,200,000
Standard quantities, standard prices, and standard unit costs follow for direct materials and direct man-
ufacturing labor:
|Standard Quantity
12 pounds
3.5 hours
Standard Price
$10 per pound
$50 per hour
Standard Unit Cost
$120
$175
Direct materials
Direct manufacturing labor
During 200A, actual number of units produced and sold was 5,500. Actual cost of direct materials used
was S668,800, based on 70,400 pounds purchased at $9.50 per pound. Direct manufacturing labor-
hours actually used were 18,500, at the rate of $51.50 per hour. As a result, actual direct manufacturing
labor costs were $952,750. Actual fixed costs were $1,180,000. There were no beginning or ending
inventories.
1. Prepare a flexible budget for that level of activity.
2. Provide variance analysis, sales volume variance and flexible budget variance.
Construct a model /4 points/. Make the calculations. /8 points/ Write a conclusion /4 points/
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education