Backpack Inc. reported the following actual and budgeted results for 2021. Actual 200,000 150,000 $20 Budgeted Backpack production Backpacks sold Selling price Direct materials per backpack Direct labor per backpack Direct materials used in yards Direct material costs Direct manufacturing hours used Direct labor costs 190,000 160,000 $18 1.5 yards @ $2.00 0.5 hr. @ $14 290,000 $580,000 140,000 $1,820,000 $900,000 Fixed manufacturing overhead costs $825,000 Required: (a) Calculate the direct materials price and efficiency variances. (b) Calculate the direct labor price and efficiency variances. (c) Fixed overhead flexible budget and production volume variances (d) Calculate the flexible budget variance for sales revenue.
Backpack Inc. reported the following actual and budgeted results for 2021. Actual 200,000 150,000 $20 Budgeted Backpack production Backpacks sold Selling price Direct materials per backpack Direct labor per backpack Direct materials used in yards Direct material costs Direct manufacturing hours used Direct labor costs 190,000 160,000 $18 1.5 yards @ $2.00 0.5 hr. @ $14 290,000 $580,000 140,000 $1,820,000 $900,000 Fixed manufacturing overhead costs $825,000 Required: (a) Calculate the direct materials price and efficiency variances. (b) Calculate the direct labor price and efficiency variances. (c) Fixed overhead flexible budget and production volume variances (d) Calculate the flexible budget variance for sales revenue.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
If you can answer all please answer all. If you can't then A, B,and C is must
Transcribed Image Text:Backpack Inc. reported the following actual and budgeted results for 2021.
Actual
200,000
150,000
$20
Budgeted
Backpack production
Backpacks sold
Selling price
Direct materials per backpack
Direct labor per backpack
Direct materials used in yards
Direct material costs
Direct manufacturing hours used
Direct labor costs
190,000
160,000
$18
1.5 yards @ $2.00
0.5 hr. @ $14
290,000
$580,000
140,000
$1,820,000
$900,000
Fixed manufacturing overhead costs
$825,000
Required:
(a) Calculate the direct materials price and efficiency variances.
(b) Calculate the direct labor price and efficiency variances.
(c) Fixed overhead flexible budget and production volume variances
(d) Calculate the flexible budget variance for sales revenue.
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
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