Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable. The company budgets a selling price of $81 per unit and variable costs of $35 per unit. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Flexible Budget Performance Report Flexible Budget For Month Ended June 30 (11,600 units) Sales Variable costs Contribution margin Fixed costs Income Actual Results (11,600 units) Variances Favorable or Unfavorable $ 25,400 Favorable 359,000 533,600 278,000 293,000 Hart Company made 3,240 shelves using 22,240 pounds of wood costing $295,792. The company's direct materials standards for one shelf are 8 pounds of wood at $13.20 per pound. Exercise 8-14A (Algo) Recording and closing materials variances LO P6 Hart Company uses a standard costing system. Prepare the journal entry to charge direct materials costs to Work in Process Inventory and record the direct materials variances. View transaction list Journal entry worksheet A Record direct materials price and quantity variances. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit 7

Complete the following partial flexible budget performance report, and indicate whether each variance is favorable or unfavorable. The company budgets a selling price of $81 per unit and variable costs of $35 per unit. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Flexible Budget Performance Report Flexible Budget For Month Ended June 30 (11,600 units) Sales Variable costs Contribution margin Fixed costs Income Actual Results (11,600 units) Variances Favorable or Unfavorable $ 25,400 Favorable 359,000 533,600 278,000 293,000 Hart Company made 3,240 shelves using 22,240 pounds of wood costing $295,792. The company's direct materials standards for one shelf are 8 pounds of wood at $13.20 per pound. Exercise 8-14A (Algo) Recording and closing materials variances LO P6 Hart Company uses a standard costing system. Prepare the journal entry to charge direct materials costs to Work in Process Inventory and record the direct materials variances. View transaction list Journal entry worksheet A Record direct materials price and quantity variances. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit 7

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 16E: Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of...

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Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is expected to amount to 20,000. The standard cost for a unit of the companys product estimates the variable overhead as follows: The actual data for the period follow: Using the four-variance method, calculate the overhead variances. (Hint: First compute the budgeted fixed overhead rate.)
Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
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Sulert, Inc., produces and sells gel-filled ice packs. Sulerts performance report for April follows: Required: 1. Calculate the contribution margin variance and the contribution margin volume variance. 2. Calculate the market share variance and the market size variance. (CMA adapted)
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Which of the following statements is not correct? A. The sales budget is computed by multiplying estimated sales by the sales price. B. The production budget begins with the sales estimated for each period. C. The direct materials budget begins with the sales estimated for each period. D. The sales budget is typically the first budget prepared.
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