Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable. The company budgets a selling price of $81 per unit and variable costs of $35 per unit. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Flexible Budget Performance Report Flexible Budget For Month Ended June 30 (11,600 units) Sales Variable costs Contribution margin Fixed costs Income Actual Results (11,600 units) Variances Favorable or Unfavorable $ 25,400 Favorable 359,000 533,600 278,000 293,000 Hart Company made 3,240 shelves using 22,240 pounds of wood costing $295,792. The company's direct materials standards for one shelf are 8 pounds of wood at $13.20 per pound. Exercise 8-14A (Algo) Recording and closing materials variances LO P6 Hart Company uses a standard costing system. Prepare the journal entry to charge direct materials costs to Work in Process Inventory and record the direct materials variances. View transaction list Journal entry worksheet A Record direct materials price and quantity variances. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit 7
Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable. The company budgets a selling price of $81 per unit and variable costs of $35 per unit. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Flexible Budget Performance Report Flexible Budget For Month Ended June 30 (11,600 units) Sales Variable costs Contribution margin Fixed costs Income Actual Results (11,600 units) Variances Favorable or Unfavorable $ 25,400 Favorable 359,000 533,600 278,000 293,000 Hart Company made 3,240 shelves using 22,240 pounds of wood costing $295,792. The company's direct materials standards for one shelf are 8 pounds of wood at $13.20 per pound. Exercise 8-14A (Algo) Recording and closing materials variances LO P6 Hart Company uses a standard costing system. Prepare the journal entry to charge direct materials costs to Work in Process Inventory and record the direct materials variances. View transaction list Journal entry worksheet A Record direct materials price and quantity variances. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit 7
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable.
The company budgets a selling price of $81 per unit and variable costs of $35 per unit.
Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.
Flexible Budget Performance Report
Flexible Budget
For Month Ended June 30
(11,600 units)
Sales
Variable costs
Contribution margin
Fixed costs
Income
Actual Results
(11,600 units)
Variances
Favorable or Unfavorable
$
25,400 Favorable
359,000
533,600
278,000
293,000
Transcribed Image Text:Hart Company made 3,240 shelves using 22,240 pounds of wood costing $295,792. The company's direct materials
standards for one shelf are 8 pounds of wood at $13.20 per pound.
Exercise 8-14A (Algo) Recording and closing materials variances LO P6
Hart Company uses a standard costing system. Prepare the journal entry to charge direct materials costs to Work in Process Inventory
and record the direct materials variances.
View transaction list
Journal entry worksheet
A
Record direct materials price and quantity variances.
Note: Enter debits before credits.
Transaction
1
General Journal
Debit
Credit
7
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