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Present the company's complete flexible budget for the year and compare it to the actual results to determine flexible budget varlances for each line Item; Include the amount and sign for all varlances. Flexible Budget Varlances Sales Less: Variable costs: Direct materials Direct labor Variable- MOH Contribution margin Less: Fixed costs Fixed-MOH SG&A Operating Income (b1) Actual $800,700 $ 172,125 Expected DM use 75,276 45.900 $507,399 170,978 243,100 $93,321 DM price varlance DM efficiency varlance $ $ 91,800 15,555 306 12,750 63,901 11,412 45,500 6,889 Unfavorable Favorable Unfavorable yards Favorable Unfavorable Favorable Favorable Unfavorable Break down the DM flexible budget varlance Into the price and efficiency varlances. How many yards of DM did the company expect it would use for actual production? Favorable Favorable $ Flexible E

Present the company's complete flexible budget for the year and compare it to the actual results to determine flexible budget varlances for each line Item; Include the amount and sign for all varlances. Flexible Budget Varlances Sales Less: Variable costs: Direct materials Direct labor Variable- MOH Contribution margin Less: Fixed costs Fixed-MOH SG&A Operating Income (b1) Actual $800,700 $ 172,125 Expected DM use 75,276 45.900 $507,399 170,978 243,100 $93,321 DM price varlance DM efficiency varlance $ $ 91,800 15,555 306 12,750 63,901 11,412 45,500 6,889 Unfavorable Favorable Unfavorable yards Favorable Unfavorable Favorable Favorable Unfavorable Break down the DM flexible budget varlance Into the price and efficiency varlances. How many yards of DM did the company expect it would use for actual production? Favorable Favorable $ Flexible E

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Marla Baldwin was a bit anxious as she created the year-end performance reports. She remembered how management had hoped the economy would make a favorable turn, taking pressure off consumers so they'd feel more comfortable spending on the company's splurge Item-a luxurious hooded cotton robe. Alas, actual production and sales ended at 5,100 units, a whopping 1,000 units shy of the company's original budget. The following Information presents the company's actual Income statement and other key Information for Marla. Sales Actual Income Varlable costs: DM DL Varlable-MOH Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating Income Standards are as follows. Direct materials Direct labor Varlable-MOH Fixed-MOH $800,700 172,125 (for 11,475 yards purchased and used) 75,276 (for 3,672 hours used) 45,900 Selling price Fixed SG&A expense 507,399 170,978 243,100 $93,321 Standard Quantity per Unit 2.30 yards 0.70 DL hours 2.30 yards 2.30 yards Additional master budget Information: $175 $288,600 Standard Price $16.00 per yard $21.00 per DL hour $5.00 per yard $13.00 per yard
Transcribed Image Text:Marla Baldwin was a bit anxious as she created the year-end performance reports. She remembered how management had hoped the economy would make a favorable turn, taking pressure off consumers so they'd feel more comfortable spending on the company's splurge Item-a luxurious hooded cotton robe. Alas, actual production and sales ended at 5,100 units, a whopping 1,000 units shy of the company's original budget. The following Information presents the company's actual Income statement and other key Information for Marla. Sales Actual Income Varlable costs: DM DL Varlable-MOH Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating Income Standards are as follows. Direct materials Direct labor Varlable-MOH Fixed-MOH $800,700 172,125 (for 11,475 yards purchased and used) 75,276 (for 3,672 hours used) 45,900 Selling price Fixed SG&A expense 507,399 170,978 243,100 $93,321 Standard Quantity per Unit 2.30 yards 0.70 DL hours 2.30 yards 2.30 yards Additional master budget Information: $175 $288,600 Standard Price $16.00 per yard $21.00 per DL hour $5.00 per yard $13.00 per yard
Present the company's complete flexible budget for the year and compare it to the actual results to determine flexible budget varlances for each line Item; Include the amount and sign for all variances. Flexible Budget Varlances Sales Less: Variable costs: Direct materials Direct labor Variable- MOH Contribution margin Less: Fixed costs Fixed-MOH SG&A Operating Income (b1) $800,700 $ Actual DM price varlance 172,125 75,276 $507,399 Expected DM use 45,900 170,978 243,100 $93,321 $ $ $ DM efficiency varlance $ 91,800 15,555 306 12,750 63,801 11,412 45,500 6,889 Unfavorable Favorable Unfavorable yards Favorable Unfavorable Favorable Break down the DM flexible budget varlance Into the price and efficiency varlances. How many yards of DM did the company expect it would use for actual production? Favorable Unfavorable Favorable Favorable $ Flexible E
Transcribed Image Text:Present the company's complete flexible budget for the year and compare it to the actual results to determine flexible budget varlances for each line Item; Include the amount and sign for all variances. Flexible Budget Varlances Sales Less: Variable costs: Direct materials Direct labor Variable- MOH Contribution margin Less: Fixed costs Fixed-MOH SG&A Operating Income (b1) $800,700 $ Actual DM price varlance 172,125 75,276 $507,399 Expected DM use 45,900 170,978 243,100 $93,321 $ $ $ DM efficiency varlance $ 91,800 15,555 306 12,750 63,801 11,412 45,500 6,889 Unfavorable Favorable Unfavorable yards Favorable Unfavorable Favorable Break down the DM flexible budget varlance Into the price and efficiency varlances. How many yards of DM did the company expect it would use for actual production? Favorable Unfavorable Favorable Favorable $ Flexible E
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