Question

Master Budget Income Statement Detail 500 wrenches at $120 each Revenue Summary $60,000 COGS Materials Labor Variable OH Total Var. Contr. Margin Less: Fixed OH Net Income (500*2 lbs $1.5 per lbs) (500*3 labor hours $20) ($12,000/1500) $8 per labor hour $1,500 $30,000 $12,000 $43,500 $16,500 $8,000 $8,500 Flexible Budget Income Statement Detail 550 wrenches at $120 each Summary $66,000 Revenue COGS Materials Labor Variable OH Total Var. Contr. Margin Less: Fixed OH Net Income (550*2 lbs $1.5 per lbs) (550*3 labor hours $20) ($8 per labor hour for 1650 labor hours) $1,650 $33,000 $13,200 $47,850 $18,150 $8,000 $10,150 Actual Results Detail 550 units at $125 per unit Summary $68,750 Revenue 1,250 lbs at $1.40 per lbs 1.640 hours at $21 per hour COGS Materials Labor Variable OH Total Var. Contr. Margin Less: Fixed OH Net Income $1,750 $34,440 $11,890 $48,080 $20,670 $7,800 $12,870

fill in the varience sheets based off of budgests

Answer 1

1	Selling price variance	2750	F
2	Cost Variance	30	U
3	Direct Cost Variance	1540	U
4	Overhead Cost Varinace	1510	F
5	Material Variance	100	U
6	Material Price Variance	125	U
7	Material Efficiency Variance	225	U
8	Labor Cost Variance	1440	U
9	Labor Price Variance	1640	U
10	Labor Efficiency Variance	200	F
11	Variable Overhead Spending Variance	1230	F
12	Variable Overhead Efficiency Variance	80	F
13	Fixed Overhead Variace	200	F
14	Sales Quantity Variance	6000	F