The following data get out from Samsung industrial company: Direct materials costs JD 75 Direct manufacturing labor costs 20 Variable manufacturing overhead costs 15 Fixed overhead costs 28 Each TV need to 0.75 hour, and each hour by JD 31.5. The number of units manufactured is the cost driver for direct materials, direct manufacturing labor, and variable manufacturing overhead. The relevant range for the cost driver is from 0 to 6,000 TV. Budgeted and actual data for November 2019 are: Budgeted fixed costs for production JD 141, 750 Budgeted selling price JD 138 per unit Actual selling price 152.75 per unit Revenue at budgeted selling price. 150 per unit Budgeted production and sales 6,000 units Actual production and sales 5,500 units Flexible - budget variable costs Direct materials JD 75 per unit * 5500 unit JD 412500 Direct manufacturing labor, JD 20 per unit * 5500 JD 110000 Variable manufacturing (OH), JD 15 per unit * 5500 JD 82500 If you know the direct materials price variance JD 24420 (F), direct materials efficiency variance JD 36300 (U), direct manufacturing (OH) spending variance JD 2475 (F), variable manufacturing (OH) efficiency variance JD 8250 (U), direct manufacturing labor price variance JD 9900 (U), direct manufacturing labor efficiency variance JD 11000 (U), fixed (OH) spending variance JD 4950 (U), operating income volume variance JD 9900 (U), and fixed (OH) production volume variance 11290 (U), Flexible –budget variance for operating income 16005 (U). Required:- Get out the following 1- Cost of goods sold at standard cost. 2- Revenue at budgeted selling price. 3- Operating income based on budgeted profit per unit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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The following data get out from Samsung industrial company: Direct materials costs JD 75 Direct manufacturing labor costs 20 Variable manufacturing overhead costs 15 Fixed overhead costs 28 Each TV need to 0.75 hour, and each hour by JD 31.5. The number of units manufactured is the cost driver for direct materials, direct manufacturing labor, and variable manufacturing overhead. The relevant range for the cost driver is from 0 to 6,000 TV. Budgeted and actual data for November 2019 are: Budgeted fixed costs for production JD 141, 750 Budgeted selling price JD 138 per unit Actual selling price 152.75 per unit Revenue at budgeted selling price. 150 per unit Budgeted production and sales 6,000 units Actual production and sales 5,500 units Flexible - budget variable costs Direct materials JD 75 per unit * 5500 unit JD 412500 Direct manufacturing labor, JD 20 per unit * 5500 JD 110000 Variable manufacturing (OH), JD 15 per unit * 5500 JD 82500 If you know the direct materials price variance JD 24420 (F), direct materials efficiency variance JD 36300 (U), direct manufacturing (OH) spending variance JD 2475 (F), variable manufacturing (OH) efficiency variance JD 8250 (U), direct manufacturing labor price variance JD 9900 (U), direct manufacturing labor efficiency variance JD 11000 (U), fixed (OH) spending variance JD 4950 (U), operating income volume variance JD 9900 (U), and fixed (OH) production volume variance 11290 (U), Flexible –budget variance for operating income 16005 (U). Required:- Get out the following 1- Cost of goods sold at standard cost. 2- Revenue at budgeted selling price. 3- Operating income based on budgeted profit per unit. 4- Actual operating income 5- Selling price variance 6- Direct materials variance 7- Direct manufacturing labor variance 8- Variance manufacturing (OH) variance 9- Fixed manufacturing (OH) variance 10- Sales volume variance for operating income 11- Flexible budget total costs

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

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