The trial balance for Metlock Corporation shows the following for its DM and DL variances at year-end, prior to closing entries. DM price variance DM efficiency variance DL price variance DL efficiency variance (a) Debit Throughout the year, actual purchase costs for DM totaled $233,250; transfers of DM cost into production totaled $234,200. The total flexible budget DL cost was $188,500 this year. DM price variance $10,300 530 15,350 DM efficiency variance Credit $5.290 Identify whether each total variance above is favorable or unfavorable.

The trial balance for Metlock Corporation shows the following for its DM and DL variances at year-end, prior to closing entries. DM price variance DM efficiency variance DL price variance DL efficiency variance (a) Debit Throughout the year, actual purchase costs for DM totaled $233,250; transfers of DM cost into production totaled $234,200. The total flexible budget DL cost was $188,500 this year. DM price variance $10,300 530 15,350 DM efficiency variance Credit $5.290 Identify whether each total variance above is favorable or unfavorable.

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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Qd 74.
The master budget at Monroe Manufacturing last period called for sales of 42,300 units at $45 each. The costs were estimated to be $29 variable per unit and $527,000 fixed. During the period, actual production and actual sales were 45,300 units. The selling price was $44 per unit. Variable costs were $31 per unit. Actual fixed costs were $518,000. Required: Prepare a profit variance analysis. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Monroe Manufacturing Profit Variance Analysis Actual Manufacturing Variances Sales Price Variance Flexible Budget Sales Activity Variance Master Budget Sales revenue Less: Variable costs Contribution margin $ 0 $ 0 $ 0 Less: Fixed costs Operating profits $ 0 $ 0 $ 0…
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