kk.Subject :- Accounting Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottomline of the report and saw the favorable variance for operating income, confirming her decision to push the workers to get those last390 cases off the production line before the end of the month.But as she glanced over the rest of numbers, Lexi couldn't help but wonder if there were errors in some of the line items. She waspuzzled at how most of the operating expenses could be higher than the budget since she had worked hard to manage the productionline to improve efficiency and reduce costs. Yet the report, shown below, showed a different story.Cases produced and soldSales revenueLess variable expensesDirect materialDirect laborVariable manufacturing overheadVariable selling expensesVariable administrative expensesTotal variable expenseContribution marginLess fixed expensesFixed manufacturing overheadFixed selling expensesFixed administrative expensesTotal fixed expenseOperating incomeActual10,300$2,080,400Direct materialsDirect laborVariable overheadFixed overheadTotal standard cost per case592,650288,300226.300111,80042,6501,261,700818,700113,00085,150135,000333,150$485,550Budget9,910$1,915,000Irvin also found the standard cost card for a case of product.Standard Price$11.35 per pound$11.15 per DLH$4.40 per MH$2.40 per MH575,300271,500225,500108,60041,3001,222,200692,800115,80084,200133,500Direct materials purchased: 53,800 pounds at a total of $610,630Direct materials used: 51,400 poundsDirect labor hours worked: 25,220 at a total cost of $278,593Machine hours used: 52,000333,500$359,300Standard Quantity5.00 pounds2.40 DLH5 MHVarianceLexi picked up the phone and called Irvin. "Irvin, I don't get it. We beat the budgeted operating income for the month, but look at all theunfavorable variances on the operating costs. Can you help me understand what's going on?" "Let me look into it and I'll get back toyou, Irvin replied.Irvin gathered the following additional information about the month's performance.5 MH390 Favorable$165,400 Favorable17,350 Unfavorable16,800 Unfavorable800 Unfavorable3,200 Unfavorable1,350 Unfavorable39,500 Unfavorable125,900 Favorable2,800 Favorable950 Unfavorable1,500 Unfavorable.(350) Favorable$126,250 FavorableStandard Cost$56.7526.7622.0012.00$117.51 (a-g)Your answer is partially correct.(a-b) Calculate the direct material price variance and direct material quantity variance for the month. (If variance is zero, select "NotApplicable" and enter O for the amounts.)Direct material price varianceDirect material quantity varianceDirect labor rate varianceDirect labor efficiency variance(c-d) Calculate the direct labor rate variance and direct labor efficiency variance for the month. (Round answers to O decimal places,e.g. 1,525. If variance is zero, select "Not Applicable" and enter O for the amounts.)$Variable overhead spending variance$Variable overhead efficiency varianceFixed overhead spending varianceeTextbook and Media$Save for Later$$$467,690(e-f) Calculate the variable overhead spending variance and variable overhead efficiency variance for the month. (If variance iszero, select "Not Applicable" and enter O for the amounts.)$02,5225,580Not Applicable02,200Favorable350Favorable(g) Calculate the fixed overhead spending variance for the month. (If variance is zero, select "Not Applicable" and enter O for theamounts.)UnfavorableFavorableUnfavorableFavorableAttempts: unlimited Submit Answer

Name: kk.Subject :- Accounting Lexi Belcher picked up the monthly report tha
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Description: kk.Subject :- Accounting Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottomline of the report and saw the favorable variance for operating income, confirming her decisi