Please complete the following exercises and/or problems from the textbook:
Sales
Volume Static
Variance Budget
Units
Sales Revenue
Variable Expenses
Contribution
Margin
Fixed Expenses
39,000 (a)
218,000 (b)
84,000 (c)
134,000 (d)
108,000 ( e)
39,000 3,000 F (g)
218,000 27,000 F (h)
81,000 10,000 U (i)
137,000 17,000 F 0 (j)
101,000
(k)
Operating Income
26,000 (f)
36,000 17,000 F (l)
Complete the performance report. Identify the employee group that may deserve
praise and the group that may be subject to criticism. Give your reasoning.
Sales Revenue
Variable Costs:
Manufacturing:
Direct Materials
Direct Labor
Variable Overhead
Variable Overhead
Selling & Administrative:
Supplies:
Total Variable Costs
Contribution Margin
Fixed Costs:
Manufacturing
Selling & Administrative:
Total Fixed Costs
Operating Income
Stenback Pro Company
Flexible Budget Performance Report
For the Year ended July 31, 2014
1
2
3
4
5
Flexible
Sales
Budgets Amounts Actual
Budget Flexible Volume Static
per Unit
Results Variance Budget Variance Budget
39,000
0
39,000 3,000F
36,000
$5.59
218,000
0
218,000 27,000 F
191,000
84,000 3,000 U
134,000 3,000 U
81,000 10,000 U
137,000 17,000 F
71,000
120,000
108,000 7,000 U
26,000 10000 U
101,000
0
36,000 17,000 F
101,000
19,000
The Sales Revenue deserves praise for a favorable sales volume variance. The total variable costs were
unfavorable so the manager may need to take a look at the quality of products being ordered.
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.
E23-20 & CP23-36:
1. 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.
FOH Vol. Var. $2,000 U
________________________________________________________________________________________
2. Assume Davis has created a standard cost card for each job. Standard
direct materials include 14 software packages at a cost os $900 per package.
Standard direct labor costs per job include 90 hours at $120 per hour. Davis plans
on completing 12 jobs during March 2013.
Actual direct materials costs for March include 90 software packages at a total cost
of $81,450. Actual direct costs 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.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
Custom Writings Help is a Quality-Oriented Company in Online Writing as a result of hiring exceptional professionals to execute clients' tasks.
Essays
At Custom Writings Help,We understand the struggle of research paper writing, and that is why at Custom WritingS Help, we are all out to help you. We pride ourselves on having a team of clinical writers. The stringent and rigorous vetting process ensures that only the 'BEST' Writers are chosen for the job. We have highly qualified Ph.D. and MA writers working with us; we equally offer these experienced writers specific bonuses and incentives to make them deliver highly original, unique, and informative content at reasonably low prices.
Admissions
Thesis Writing Service
Worlwide, Many Masters Students are struggling with Thesis Completion. A thesis is likely to be the longest and most challenging piece of work a student has ever completed. However, unlike essays and other assignments, a student can pick a particular interest topic and work on their initiative. Fortunately, we are there for you. At Custom Writings Help, you are assured of an authentic, imaginative, informative, linguistically great, and advantageous thesis that adheres to all your needs. So, why continue considering different writers when you have discovered the best in the field?
Editing
Custom Papers
Not a single student can avoid writing custom papers. However, a total lack of experience, skills, and time makes it very hard to produce a superb writing piece. Therefore, if you are seeking professional help, turn to us. Our specialized and experienced writers compose a variety of model papers, including custom essays, college term papers, research papers, book reports, MBA essays, executive summaries, dissertations, Ph.D. theses, admission essays, and research proposals for college and university students at any level.
Coursework
Essay Writing
Most of the students disregard the critical principles of essay writing and compose papers below sensible guidelines. Therefore, with Custom Writings Help, one should not worry about his/her essay. Our Writers compose informative and engaging content on all complexities and topics. We write meaningful and smart essays while prioritizing all aspects that bring about a good grade, such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines.
Coursework
Coourse Work Writing
Don't let the seemingly never-ending onslaught of writing assignments get you down. If you are looking where to get course work assistance online, the writers at Custom Writings Help are here to assist you with all of your writing needs. We undertake to unique delivery of papers that meet the professor's requirements. The content is proofread, edited, and checked plagiarism before submission to customers. No matter how big or small your work is, we will deliver on time. Try US Now! !
Coursework
Dissertation Writing Service
High-Quality Dissertation Writing Services are rare. They require Ph.D. academicians – not easily found. However, are an exception. The years, time, and resources we have invested in the dissertation world has given us a competitive advantage over others. Choose to come to Custom Writings Help; You will find perfect Ph.D. consultants who have written hundreds of dissertations theses ready to help you. Let our dissertation-writing services help you craft your dissertation, for you are assured we will give you the results.