Problem 15-21A (Algo) Determining and interpreting flexible budget variances LO 15-5Franklin Publications established the following standard price and costs for a hardcover picture book that the company producesStandard price and varlable costsSales priceMaterials costLabor costOverhead costSelling, general, and administrative costsPlanned fixed costsManufacturing overheadSelling, general, and adeinistrative$ 30.308.403.605.406.s0$133,00047,080Assume that Franklin actually produced and sold 26,000 books. The actual sales price and costs incurred followActual price and variable costsSales priceMaterials cost$ 35.308.603.5eLabor costOverhead cost5.45Selling, general, and adeinistrative costsActuel fixed costs6.60Manufacturing overheadSelling, general, and adeinistrative$118,00053,00e Requireda. & b. Determine the flexible budget variances and also Indicate whether each variance is favorable (F) or unfavorable (U). (Select"None" if there is no effect (i.e., zero variance).)Flexible BudgetVariancasSales revenueVariable manufacturing costsMaterialsLaborOverheadVariable selling general, and administrative costsContribution marginFixed costsManufacturing overheadSelling. general and administrative costsNet income

The image is not so clear, so it is so hard to correctly recognize the amounts. I took the amounts…

Answered: Required a. & b. Determine the flexible…

Required a. & b. Determine the flexible budget variances and also Indicate whether each variance is favorable (F) or unfavorable (U) (Select "None" if there is no effect (i.e., zero variance).)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 6E: Computing materials variances D-List Calendar Co. specializes in manufacturing calendars that depict...

See similar textbooks

Similar questions

O 2 Seacoast Company provided the following information about its standard costing system for 2019: F2 - W S Materials Labor Budgeted production 3 Materials Price Variance F3 + Calculate the price, quantity and total variances for labor and materials. Format your answers using $, commas, and zero decimal places. Also indicate for each variance "F" for favorable or "U" for unfavorable. # E D Labor Price Variance F4 0 4 $ R 10 lbs. @ $4 per lbs. 3 hrs. @ $21 per hr. 3,500 units F F5 Total Materials Variance. Standard Data 5 % T Total Labor Variance G F6 Favorable/Unfavorable Favorable/Unfavorable H F7 6 ^ Y H F8 Materials Variances 7 & Produced Materials purchased Materials used Labor worded O Search L U J Labor Variances Materials Quantity Variance Labor Quantity Variance LG F9 88 F10 - 8 * 9 ( A K O 4,000 units 50,000 lbs. for $215,000 41,000 lbs. 11,000 hrs. costing $220,000 Favorable/Unfavorable F11 - 0) L Actual Data Favorable/Unfavorable P Favorable/Unfavorable…
Question Content Area The following data relate to direct labor costs for the current period: Line Item Description Value Standard costs 7,000 hours at $11.80 Actual costs 6,300 hours at $10.80 The direct labor rate variance is a. $14,560 unfavorable b. $6,300 favorable c. $14,560 favorable d. $8,260 favorable
Performance Evaluation; Ch CABILIDE 1o (Migu, riepanny envie vuugel pervane repicuri Lewis Company reports the following fixed budget and actual results for May. Prepare a flexible budget performance report showing variances between budgeted and actual results. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Sales (units produced and sold) Sales (in dollars) Variable costs Fixed costs For Month Ended May 31 Sales Variable costs Contribution margin Fixed costs Income Fixed Budget 1,240 $ 500 per unit $ 200 per unit $ 131,000 LEWIS COMPANY Flexible Budget Performance Report Flexible Budget Actual Results Variances (1,440 units) (1.440 units)
Subject - Acounting The following data relate to direct labor costs for the current period: Line Item Description Value Standard costs 7,500 hours at $11.80 Actual costs 6,300 hours at $10.70 The direct labor rate variance is a. $21,090 unfavorable b. $6,930 favorable c. $21,090 favorable d. $14,160 favorable
Exercise 5: Computation for Overhead Variance and Journal Entries Golden Manufacturers, Inc. applies factory overhead at P8 per direct labor hour. Actual factory overhead and actual labor hours for 19F were P470,500 and 58,000 hours, respectively. Normal capacity is 60,000 hours.
QUESTION 8 For a company that does not have any production resource limitations, which of the following sets out a correct sequence for budger preperation? Oa. Sales budger, Production budget, Finished goods inventory budget, then Materials usage budger Ob.Sales budget, Finished goods inventory budget, Production budget, then Materials usage budget OC Sales budget, Maserials usage budget, Production budget, then Finished goods inventory budget Od. Production budger, Sales budget. Finished goods inventory budger, then Materials usage budget QUESTION 9 Roxy Ltd uses a standard costing system. The budget for one of its products for june includes labour cost (based on 4 hours per unit) of E17,600. During June 350 units were made which was 25 units fewer than budgeted. The labour cost incurred wes £11,850 and the number of labour hours worked was 1,000. What was Raxy's labour rate variance for June (rounded to the nearest E10)? OAE120 (F) OBE120 (A) O E4,580 (F) O d.E4.580 (A)
(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.)
Refer to the data in Exercise 9.15. Required: 1. Compute overhead variances using a two-variance analysis. 2. Compute overhead variances using a three-variance analysis. 3. Illustrate how the two- and three-variance analyses are related to the four-variance analysis. Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours. (Practical capacity is 500,000 hours.) Annual budgeted overhead costs total 787,200, of which 556,800 is fixed overhead. A total of 119,400 units using 478,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were 230,600, and actual fixed overhead costs were 556,250. Required: 1. Compute the fixed overhead spending and volume variances. How would you interpret the spending variance? Discuss the possible interpretations of the volume variance. Which is most appropriate for this example? 2. Compute the variable overhead spending and efficiency variances. How is the variable overhead spending variance like the price variances of direct labor and direct materials? How is it different? How is the variable overhead efficiency variance related to the direct labor efficiency 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:
Computing materials variances D-List Calendar Co. specializes in manufacturing calendars that depict obscure comedians. The company uses a standard cost system to control its costs. During one month of operations, the direct materials costs and the quantities of paper used showed the following: Calculate the following: 1. Total cost of purchases for the month 2. Materials purchase price variance 3. Materials quantity variance 4. Net materials variance
Flexible Budget for Various Levels of Production Budgeted amounts for the year: Required: 1. Prepare a flexible budget for 3,500, 4,000, and 4,500 units. 2. CONCEPTUAL CONNECTION Calculate the unit cost at 3,500, 4,000, and 4,500 units. (Note: Round unit costs to the nearest cent.) What happens to unit cost as the number of units produced increases?
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: