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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Part B is needed

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

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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