Question

show all work please to all problems!

1. all work for this

Evanson Company expects to produce 516,000 units of their product during the year. Monthly production is expected to range from 40,000 to 80,000 units. The company has budgeted manufacturing costs per unit to be as follows: Direct materials $ 8 Direct labor Variable manufacturing overhead Fixed manufacturing overhead 10 Prepare a flexible manufacturing budget using 20,000 unit increments. Evanson Company Monthly Flexible Manufacturing Budget Activity level Finished units Variable costs Direct materials Direct labor Overhead Total variable costs Fixed costs Total fixed costs Total costs

one last part to another question! stuck on calculating the direct materials spending variance! please show full answer and figure this out as soon as possible! highly appreciate it!

Answer 1

Solution 1:

Evanson Company
Monthly flexible manufacturing overhead budget
Activity level:
Finished units	40000	60000	80000
Variable costs:
Direct materials	$320,000.00	$480,000.00	$640,000.00
Direct labor	$360,000.00	$540,000.00	$720,000.00
Overhead	$400,000.00	$600,000.00	$800,000.00
Total variable costs	$1,080,000.00	$1,620,000.00	$2,160,000.00
Fixed costs:
Total fixed costs	$129,000.00	$129,000.00	$129,000.00
Total costs	$1,209,000.00	$1,749,000.00	$2,289,000.00

Solution 2:

Direct Material Cost Variance
Actual Cost					Standard cost for actual quantity					Standard Cost
AQ *	AP =				AQ *	SP =				SQ *	SP =
4460	$3.50	$15,610.00			4460	$3.60	$16,056.00			4140	$3.60	$14,904.00
			$446.00	F				$1,152.00	U
			Direct Material Price Variance					Direct Material Qty variance
Direct material price variance					$446.00	F
Direct material quantity variance					$1,152.00	U
Direct material cost variance					$706.00	U