Using the data below, answer the questions about the Direct Materials Cost (DMC) variances and the Direct Labor Cost (DLC) variances. i. Who is responsible for the favorable DMC variance of $204,000? ii. What are the two likely causes for the favorable DMC of $204,000? iii. Who is responsible for the unfavorable DMC variance of $100,000? iv. What are the two likely causes for the unfavorable DMC of $100,000? v. What are the two likely causes for the favorable DLC variance of $153,000? vi. What are the two likely causes for the unfavorable DLC variance of $72,000? Flexible Sales Master Budget Flexible Volume (Static) Actual Variance F/U Budget Variance F/U Budget Sales volume (units) 51,000 51,000 4,000 F 47,000 Sales revenue $ 3,315,000 $ 357,000 $ 3,672,000 $ 288,000 $ 3,384,000 U F Variable costs: Direct materials cost 1,071,000 204,000 F 1,275,000 100,000 U 1,175,000 Direct labor cost 765,000 153,000 F 918,000 72,000 U 846,000 Overhead cost - variable 510,000 102,000 U 408,000 153,000 32,000 U 376,000 Selling, General Admin costs - variable Total variable costs 204,000 2,550,000 141,000 2,538,000 51,000 U 12,000 204,000 F 2,754,000 216,000 U Contribution margin 765,000 153,000 U 918,000 72,000 846,000 Ciuad se.
Using the data below, answer the questions about the Direct Materials Cost (DMC) variances and the Direct Labor Cost (DLC) variances. i. Who is responsible for the favorable DMC variance of $204,000? ii. What are the two likely causes for the favorable DMC of $204,000? iii. Who is responsible for the unfavorable DMC variance of $100,000? iv. What are the two likely causes for the unfavorable DMC of $100,000? v. What are the two likely causes for the favorable DLC variance of $153,000? vi. What are the two likely causes for the unfavorable DLC variance of $72,000? Flexible Sales Master Budget Flexible Volume (Static) Actual Variance F/U Budget Variance F/U Budget Sales volume (units) 51,000 51,000 4,000 F 47,000 Sales revenue $ 3,315,000 $ 357,000 $ 3,672,000 $ 288,000 $ 3,384,000 U F Variable costs: Direct materials cost 1,071,000 204,000 F 1,275,000 100,000 U 1,175,000 Direct labor cost 765,000 153,000 F 918,000 72,000 U 846,000 Overhead cost - variable 510,000 102,000 U 408,000 153,000 32,000 U 376,000 Selling, General Admin costs - variable Total variable costs 204,000 2,550,000 141,000 2,538,000 51,000 U 12,000 204,000 F 2,754,000 216,000 U Contribution margin 765,000 153,000 U 918,000 72,000 846,000 Ciuad se.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer the following questions using this chart.
![Using the data below, answer the questions about the Direct Materials Cost (DMC) variances and the Direct Labor Cost (DLC)
variances.
i. Who is responsible for the favorable DMC variance of $204,000?
ii. What are the two likely causes for the favorable DMC of $204,000?
iii. Who is responsible for the unfavorable DMC variance of $100,000?
iv. What are the two likely causes for the unfavorable DMC of $100,000?
v. What are the two likely causes for the favorable DLC variance of $153,000?
vi. What are the two likely causes for the unfavorable DLC variance of $72,000?
Flexible
Sales
Master
Budget
Flexible
Volume
(Static)
Actual
Variance
F/U
Budget
Variance
F/U
Budget
Sales volume (units)
51,000
51,000
4,000
47,000
Sales revenue
$ 3,315,000 $ 357,000
U
$ 3,672,000 $ 288,000
$ 3,384,000
F
Variable costs:
Direct materials cost
1,071,000
204,000
1,275,000
100,000
1,175,000
Direct labor cost
765,000
153,000
F
918,000
72,000
846,000
Overhead cost - variable
510,000
102,000
408,000
32,000
376,000
Selling, General Admin costs - variable
204,000
2,550,000
51,000
204,000
153,000
2,754,000
12,000
216,000
141,000
2,538,000
Total variable costs
F
U
Contribution margin
765,000
153,000
U
918,000
72,000
846,000
Fixed costs:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e6a92d4-02c1-4061-bad7-84e690a92955%2F993f327d-b489-4dd3-af23-0d9569f429d6%2Fx5bgvpc_processed.png&w=3840&q=75)
Transcribed Image Text:Using the data below, answer the questions about the Direct Materials Cost (DMC) variances and the Direct Labor Cost (DLC)
variances.
i. Who is responsible for the favorable DMC variance of $204,000?
ii. What are the two likely causes for the favorable DMC of $204,000?
iii. Who is responsible for the unfavorable DMC variance of $100,000?
iv. What are the two likely causes for the unfavorable DMC of $100,000?
v. What are the two likely causes for the favorable DLC variance of $153,000?
vi. What are the two likely causes for the unfavorable DLC variance of $72,000?
Flexible
Sales
Master
Budget
Flexible
Volume
(Static)
Actual
Variance
F/U
Budget
Variance
F/U
Budget
Sales volume (units)
51,000
51,000
4,000
47,000
Sales revenue
$ 3,315,000 $ 357,000
U
$ 3,672,000 $ 288,000
$ 3,384,000
F
Variable costs:
Direct materials cost
1,071,000
204,000
1,275,000
100,000
1,175,000
Direct labor cost
765,000
153,000
F
918,000
72,000
846,000
Overhead cost - variable
510,000
102,000
408,000
32,000
376,000
Selling, General Admin costs - variable
204,000
2,550,000
51,000
204,000
153,000
2,754,000
12,000
216,000
141,000
2,538,000
Total variable costs
F
U
Contribution margin
765,000
153,000
U
918,000
72,000
846,000
Fixed costs:
![TII. VVNO IS responsibiIe for the uniavorabie DMC vanance of pT00,000 ?
iv. What are the two likely causes for the unfavorable DMC of $100,000?
v. What are the two likely causes for the favorable DLC variance of $153,000?
vi. What are the two likely causes for the unfavorable DLC variance of $72,000?
Flexible
Sales
Master
Budget
Flexible
Volume
(Static)
Actual
Variance
F/U
Budget
Variance
F/U
Budget
Sales volume (units)
51,000
51,000
4,000
47,000
Sales revenue
$ 3,315,000 $ 357,000
U
$ 3,672,000 $ 288,000
$ 3,384,000
F
Variable costs:
Direct materials cost
1,071,000
204,000
F
1,275,000
100,000
1,175,000
Direct labor cost
765,000
153,000
F
918,000
72,000
846,000
Overhead cost - variable
102,000
408,000
510,000
204,000
2,550,000
32,000
376,000
153,000
2,754,000
Selling, General Admin costs - variable
51,000
U
12,000
216,000
141,000
2,538,000
Total variable costs
204,000
Contribution margin
765,000
153,000
U
918,000
72,000
F
846,000
Fixed costs:
Overhead cost - fixed
114,000
6,400
F
120,400
120,400
Selling, General Admin costs - fixed
69,000
2,000
4,400
U
67,000
187,400
67,000
187,400
Total fixed costs
183,000
Net operating income
$ 582,000 $
148,600
U
$ 730,600 $ 72,000
$ 658,600
ככככ כ](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e6a92d4-02c1-4061-bad7-84e690a92955%2F993f327d-b489-4dd3-af23-0d9569f429d6%2Fdxj2bmv_processed.png&w=3840&q=75)
Transcribed Image Text:TII. VVNO IS responsibiIe for the uniavorabie DMC vanance of pT00,000 ?
iv. What are the two likely causes for the unfavorable DMC of $100,000?
v. What are the two likely causes for the favorable DLC variance of $153,000?
vi. What are the two likely causes for the unfavorable DLC variance of $72,000?
Flexible
Sales
Master
Budget
Flexible
Volume
(Static)
Actual
Variance
F/U
Budget
Variance
F/U
Budget
Sales volume (units)
51,000
51,000
4,000
47,000
Sales revenue
$ 3,315,000 $ 357,000
U
$ 3,672,000 $ 288,000
$ 3,384,000
F
Variable costs:
Direct materials cost
1,071,000
204,000
F
1,275,000
100,000
1,175,000
Direct labor cost
765,000
153,000
F
918,000
72,000
846,000
Overhead cost - variable
102,000
408,000
510,000
204,000
2,550,000
32,000
376,000
153,000
2,754,000
Selling, General Admin costs - variable
51,000
U
12,000
216,000
141,000
2,538,000
Total variable costs
204,000
Contribution margin
765,000
153,000
U
918,000
72,000
F
846,000
Fixed costs:
Overhead cost - fixed
114,000
6,400
F
120,400
120,400
Selling, General Admin costs - fixed
69,000
2,000
4,400
U
67,000
187,400
67,000
187,400
Total fixed costs
183,000
Net operating income
$ 582,000 $
148,600
U
$ 730,600 $ 72,000
$ 658,600
ככככ כ
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