Question

Tully Company's production performance report for

April includes the information shown below.

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Requirement

Prepare a flexible budget for the items shown and compute the flexible budget cost variances and planning cost variances for each item. Indicate whether the variances are favorable or unfavorable for each item.

Begin with the master​ budget, then complete the flexible budget columns and the actual results columns. Label each variance as favorable​ (F) or unfavorable​ (U).​ (For variances with a​ $0 balance, make sure to enter​ "0" in the appropriate field. If the variance is​ zero, do not select a label. Round interim calculations to the nearest​ cent.)

Tully Company's production performance report for April includes the information shown below (Click the icon to view the production performance report.) Requirement Prepare a flexible budget for the items shown and compute the flexible budget cost variances and planning cost variances for each item. Indicate whether the variances are favorable or unfavorable for each item. Begin with the master budget, then complete the flexible budget columns and the actual results columns. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label. Round interim calculations to the nearest cent.) Master Planning Flexible Flexible Budget Budget Variance Budget Variance Actual Data Table Units Direct materials Direct labor ACTUAL 100,000 MASTER BUDGET 109,000 Volume Fixed manufacturing support Total Manufacturing costs: Direct materials Direct labor 770,000 $ 304,000 452,000 872,000 327,000 470,000 Fixed manufacturing support Total $ 1,526,000 $ 1,669,000 Choose from any list or enter any number in the input fields and then continue to the next question. Print Done

Answer 1

Solutions:

	Master Budget	Planning Variance	Flexible Budget	Flexible Budget Variance	Actual
Units	109000		100000		100000
Direct Materials	872000	72000 F	800000	30000 F	770000
Direct Labor	327000	27000 F	300000	-4000 U	304000
Fixed Manufacturing Support	470000	0	470000	18000 F	452000
Total	1669000	99000	1570000	44000	1526000

Computation:

	Master Budget	Cost per unit	Flexible Budget
Units	109000		100000
Direct Materials	872000	872000/109000=8	100000*8=800000
Direct Labor	327000	327000/109000=3	100000*3=300000
Fixed Manufaturing Support	470000		470000