Question

Question 3 - Flexible Budgets Management Control ost Variances, an Milan Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The tollowing information is from the static budget for 2017 and sales 6,100 Total fixed costs 1,350 Standard quantities, s follow for direct materials and direct manufacturing labor: tandard prices, and standard unit costs tandard Quantity d Unit C 514 $30 per hour Direct materials 38 hours $114 During 2017, actual number of units produced and sold was 5,100, at an average selling price of S730. Actual cost of direct materials used was S1,149,400, based on 70,000 pounds purchased at S16.42 per pound. Direct manufacturing labor- hours actually used were 17,000, at the rate of S33.70 per hour As a result, actual direct manufacturing labor costs were S572,900. Actual fixed costs were S1,200,000. There were no beginning or ending inventories. Required 1. Calculate the sales-volume variance and flexible-budget variance for operating income. Compute price and efficiency variances for direct materials and direct manufacturing labor.

Answer 1

Ansuer Calculal e Sales voleume asianee Expectedpeoduskion and des 6100 unt Expeated eltg pasc Pen Fied costs sooo Vaxiahee Units sold 5,l00 IS 3,000,' Fired :$4270,000 Unt. reet -し3661 Fi eed Direrl .F58 1.400 Fixed -r6759Do Fixed Fixed Cost Co) DOO Fixed

ptal cose ope calculele price and Eftscieny varianes fr Direst materials and ret lakor Actual oumbrunitr poodeed and sold のυバ\.be入 po3 μ..5 100 , at-an average, selling fuel based e o0 POu oune hous Diret Here $ 52,900 Actual-fixad c08,6大.wai f , 300, to

Actual Atua Valia Units ern 声980,0001 Unit 1,143,no Fixed Diserl 7), you 5 lopoo 9323o0 uniks $233goO