Question

0 Data Table lices, and standard unit jes of famous histo mount of resource ata.) met data.) Expected production and sales Expected selling price per unit Total fixed costs $ $ 7,000 units 680 1,400,000 me variance and fi Data Table Direct materials Direct manufacturing labor Standard Quantity 10 pounds 3.7 hours Standard Price 58 per pound $50 per hour Standard Unit Cost $80 $185 During 2017, actual number of units produced and sold was 4,800, at an average selling price of $720. Actual cost of direct materials used was $392,700, based on 66,000 pounds purchased at $5.95 per pound. Direct manufacturing labor-hours actually used were 18,300, at the rate of $48.00 per hour. As a result, actual direct manufacturing labor costs were $878,400. Actual fixed costs were $1,170,000. There were no beginning or ending inventories. Print Done

Answer 1

Answer with working notes is given below

Emerald Statuary Flexible Budget Performance Report Year Ended December 31, 2017 Flexible Sales - Actual Flexible Static Budget Volume Results Budget Budget Variance Variance $3,456,000 $192,000 F $3,264,000 $1,496,000 $4,760,000 $392,700 $8,700 U $384,000 $176,000 Fl $560,000 $878,400 $9,600 F $888,000 $407,000 F $1,295,000 $1,170,000 $230,000 $1,400,000 $0 $1,400,000 $2,441,100 $230,900 F $2,672,000 $583,000 F $3,255,000 $1,014,900 $422,900 F $592,000 $913,000|U| $1,505,000 Revenues Direct Materials Direct manufacturing labor Fixed costs Total Costs Operating Income 2 Material Price Variance Efficiency variance $135,300 $144,000 Price variance - = (Standard price - Actual price ) * Actual quantity of raw material used ($8-$5.95)*66,000 Efficiency variance = ( Standard quantity for actual production - Actual quantity) * standard rate ((4800*10 )- 66,000 )*8 Labor Price Variance Efficiency variance $36,600 $27,000 $27,000 F ☺ Price variance -= (Standard labor rate - Actual labor rate) * Actual labor hour worked ($50-$48) *18300 Efficiency variance = ( Standard labor for actual production - Actual labor hours) * standard labor rate ((4800*3.7)- 18,300 )*50