Below is Justin Corp's flexible budget and actual results for making 52,000 units. The company's expected manufacturing products in the static budget is 50,000 units. Budget Amt Unit (Batches of 100) Variable costs Direct Materials Direct Labor Variable Overhead Fixed Costs Fixed Overhead Total Per Unit 1.75 2.88 0.72 Actual Results Variance 52000 117000 145600 30160 23920 503680 26000 -4160 -7280 . Direct labor efficiency standard Actual amount of direct labor hours . Actual cost of direct labor -1080 480 Flexible Budget 52000 91000 149760 37440 25000 303200 Using the above table and below additional information, calculate direct labor cost price variance and quantity variance. Additional information for DL: 0.24 DL.Hr per batch of crayons 10,400 DLHr $145,600
Below is Justin Corp's flexible budget and actual results for making 52,000 units. The company's expected manufacturing products in the static budget is 50,000 units. Budget Amt Unit (Batches of 100) Variable costs Direct Materials Direct Labor Variable Overhead Fixed Costs Fixed Overhead Total Per Unit 1.75 2.88 0.72 Actual Results Variance 52000 117000 145600 30160 23920 503680 26000 -4160 -7280 . Direct labor efficiency standard Actual amount of direct labor hours . Actual cost of direct labor -1080 480 Flexible Budget 52000 91000 149760 37440 25000 303200 Using the above table and below additional information, calculate direct labor cost price variance and quantity variance. Additional information for DL: 0.24 DL.Hr per batch of crayons 10,400 DLHr $145,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Using the above table and below additional information, calculate direct labor cost price variance and quantity variance.
Additional information for DL:
• Direct labor efficiency standard
. Actual amount of direct labor hours
Actual cost of direct labor
0.24 DLHr per batch of crayons
10,400 DLHr
$145,600
a. Price variance is 650 unfavorable, and quantity variance is 22,480 unfavorable.
b. Price variance is 20,800 unfavorable, and quantity variance is 24,960 favorable.
c. Price variance is 20,800 favorable, and quantity variance is 24,960 favorable.
O d. Price variance is 650 favorable, and quantity variance is 22,480 unfavorable.
Transcribed Image Text:Below is Justin Corp's flexible budget and actual results for making 52,000 units. The company's expected manufacturing
products in the static budget is 50,000 units.
Budget Amt
Per Unit
Unit (Batches of 100)
Variable costs
Direct Materials
Direct Labor
Variable Overhead
Fixed Costs
Fixed Overhead
Total
1.75
2.88
0.72
Actual Results Variance
52000
117000
145600
30160
23920
303680
26000
-4160
-7280
. Direct labor efficiency standard
• Actual amount of direct labor hours
Actual cost of direct labor
-1080
480
Flexible
Budget
52000
91000
149760
37440
25000
303200
Using the above table and below additional information, calculate direct labor cost price variance and quantity variance.
Additional information for DL:
0.24 DLHr per batch of crayons
10,400 DL.Hr
$145,600
Oa. Price variance is 650 unfavorable, and quantity variance is 22,480 unfavorable.
b. Price variance is 20,800 unfavorable, and quantity variance is 24,960 favorable.
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