-lit aI!IE i E23-16 Preparing a flexible budget performance


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Question #1 is the attached file 2. Calculating materials and labor variances Great Fender, which uses a standard cost accounting system, manufactured 20,000 boat fenders during 2014, using 144,000 square feet of extruded vinyl purchased at $1.05 per square foot. Production required 420 direct labor hours that cost $13.50 per hour. The direct materials standard was 7 square feet of vinyl per fender, at a standard cost of $1.10 per square foot. The labor standard was 0.025 direct labor hour per fender, at a standard cost of $12.50 per hour. Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Great Fender’s managers have been making trade-offs? Explain. DL Eff. Var. $1,000 F 3.Computing overhead variances Review the data from Great Fender given in Exercise E23-19. Consider the following additional information: Static budget variable overhead $ 5,500 Static budget fixed overhead $ 22,000 Static budget direct labor hours 550 hours Static budget number of units 22,000 units Great Fender allocates manufacturing overhead to production based on standard direct labor hours. Great Fender reported the following actual results for 2014: actual variable overhead, $4,950; actual fixed overhead, $23,000. Requirements 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable. 1. FOH Vol. Var. $2,000 U 4. Calculating materials and labor variances and preparing journal entries This continues the Davis Consulting, Inc. situation from Problem P22-56 of Chapter 22. Assume Davis has created a standard cost card for each job. Standard direct materials include 14 software packages at a cost of $900 per package. Standard direct labor cost per job include 90 hours at $120 per hour. Davis plans on completing 12 jobs during March 2013. Actual direct materials costs for March included 90 software packages at a total cost of $81,450. Actual direct labor costs included 100 hours per job at an average rate Actual direct labor included 100 hours per job at an average rate of 125 per hour. Davis completed all 12 jobs in March. Requirements 1. Calculate direct materials cost and efficiency variances. 2. Calculate direct labor cost and efficiency variances. 3. Prepare journal entries to record the use of both materials and labor for March for the company. Scan_Doc0002.pdf -lit aI!IE i E23-16 Preparing a flexible budget performance report g Ii’ d ~S3l m}§LtdZ Learning Objective 1 Stenback Pro Company managers received the following incomplete performance report: STENBACK PRO COMPANY Flexible Budget Performance Report For the Year Ended July 31, 2014 Actual Results Units Flexible Budget· Sales Volume Variance Sales Revenue Margin Fixed Expenses Operating Income Static Budget F (g) $ 27,000 F (h) 10,000 U (i) 137,000 17,000 F 101,000 0 (k) $ 36,000 $ 17,000 (I) 39,000 Variable Expenses Contribution Flexible Budget Variance (a) 39,000 3,000 $ 218,000 (b) $ 218,000 84,000 (e) 81,000 134,000 (d) 108,000 (e) $ 26,000 (f) (j) Complete the performance report. Identify the employee group that may deserve praise and the group that may be subject to criticism. Give your reasoning. d,iotdJ!4 d@ P’ :r’. ; F ~ ;iI. ri aEdliiEri£ i dbiisitS3 j lair. ••• Read more

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