Standard Costs - Part 1 - 1-10
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standard_costs_-_part_1-_1-10.pdf
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Exercise ))-1-16 Direet materiats and direct labor variances L"A" PZ The folilowing inforrnation describes production actir,ities of Truzar l,lanuhcturing forthe year
BudgeteJ standards for each unit produced are 1.00 pounds of nrw material at $5.80 per pourd and 10.0 minutes of direct labor at $15.50 per hour.
(1)Compute the dircct matefials price and quantity \ariances.{lnput all amount aea positive value. lndicate the effect of each varianc€ by selecting "F" for favorable, "U" for unfavorable, and 'Non'e" for no effect {i.e., zero variance}, Leave no crl{ls blank - be certain to enler "0" wherrever required. Omit the '$" dgn in your response)
Actuarl raw matedals used Actual factory payroll Actual units prroduced
Price \adance
Quantity rariance
Rate rarianee
Effciency \ariance
38,000 lbs. at $5.70 per lb. 6,000 hours for a total of $96,[,110
30,000
$ ffi.H $
(2lc.e,rnpute the dir€ct labor €te and &ciercy wiances. (lnp,ut all amount as a positive value. lndicale the effiect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" fur no efiect {i,e., zero variance}, Leave no cells blank - be certain to enter "0" wherever required. Omit the "$' dgn in your raryonse)
Workshieet €xercise 2t -f 6 !)irecf m*fen'aJs and direct ia$ sr yariances L.A f ,?
Learning Objective: 21-P? Com pute m aterials and labor \tariances.
2.
Exercise 21-3 Preparation af a flexible budget pertormance report L.O. P1 Omanon Company's fixed budget performance rcport for July fullcrrs. The $630,Ct00 budgeted expenses include $592,2ff1 rariable expenses and $37,800 fxed expensas. l\ctual expenses include $49,800 fixed expenses.
Fixed Budget Actual Results Vimances 8,400 10,900Sales (in units)
Sales (in dollars) Totat exp,enses
lncome f,om operations $21 0,000 $ 324,000 $11 4,000 F
Preparc a flexible budget perbrmance rcport sholving any \ariances between budgeted rcsults and actual result$. List fxed and variade expenses separately. $np$t all am.0unts as a positive value. lndicate the effeet of each variance by seleeting "F" for ftvorable, "U" llor undavorable, and "None" for no effect (i.e.. zero variance), Leave no cells blank - be certain I't enler "0" wherever required. Do not round your intermediate calculations and round your {i:'ral ansyers to the nearest dollar amount, Ormit the "$" dgn ln your response.)
CIMARRON MMPANY Flexible Budget Performance F:eport
For Month Ended July 31 Flexible Budget Actual Results Variances
f@!ffi$ $ Cltck to ,selectl v
$840,000 $1,090,000 $2rt0,000 F 630,000 756,000 1i:6,000 u
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A;signrnent Print Mew
L*arning Objei:tiw:21-P1 Prepare a fiexible Lrudget and interpret a lexible budget performance report.
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Fxercrbe 2t-3 Freparufion ofa i?exibie budgef pedornrirnce rcpCIrf 1.CI. Ff
3.
Rate Variance
Effr;iency Variance
Total Labor Variance
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October0mil 0ffiiil
Noremberoffi 0ffi
Exercise 2l-5 Computation and interpretation of labor variancee L.O. P2 Afier elailuating Zero Company's manufactudng pEcess, manage,nent decides to establish standards of 4.0 houm of dircct labor per unit of product and $16 per hour lbr the labor rate. During October, the company uses 16,9)0 hours of direct labor at a $256,880 total cc,rt to pmduce 5,600 units of product. ln Nowmber, the company usea 19,5,00 hours of direct labor at a $3:4,200 total cost to produce 5,800 unit8 of prcduct.
(1) Comp,ute the rate \ariance, the effciency \adance, and the tolrrl direct labor cost rariance frr each of thase t\,w months. {lnput all amounts as a posilive value. ln rlicate the effect of each variance by selecling "F" for fsvorable, "U" for unfavorable, and "Nonr;" for no effect {i.e., zero variance}. Lealr€! no cells blank - be cerlain to enter "0" wherever required. Round your intermediate calculations ta 2 decimal places and round your final anr;wers to the nearest dollar smounL Omit the "$" sign in your response.)
Workshe,et
Exercise, ;11 -5 C*m putati*n and interpr*tatian *{ fabar va,riirnces 1".0. P2
$+90,000 44A,AW
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*earning *t:i*ol ,ftt:21-FZ **mput€ material* and fabor \ffiriances.
$ 436,100 $ 4t1,900 u 408,000 3ll,000 F
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Exercise 2l-4 *eparatian af a flexible budget performance repatl L.Q. Pl Daytec Ccrnpany's fixed budget perbrmance report fu June follolris. The $.140,000 budgeted expenses include $?1O{D0 rariable expenses and $200,0tX} fix€d expens€s. f,clual expenses include $190,000 fxed expenses.
Sales (in units)
Sales (in dollars) Total exprrnses
lncome thrm operations
Fixed Budget Actual Results Ve ,iances 6,000 4,900
$ 40,000 $ 28,100 $ t"g00u
Prepare a flexible budget peformance report that showing any \ariances between budgeted and actual esults. List fixed and \rariable expenses separat€ly. {lndicate the e:ffect of each variance by selecting "F" for firrrorable, "U" for unfavorable, and "None'for no ellect {i.e., zero variance}. Negaiive amount should be indicated by a minus sign. Do not round inrermediate calculations and round final an$vers to the nearesf dollar amouflL Omit the "$" sign in your reqonse.)
DAYTEC COMPANY Flexible Budget Perficrmance Report
For Month Ended June iiO Flexible Budget Actual Resullrl Variances
Sales i r
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Variatile expenses i-
@c Fixed exs,errcgs I ,r
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Sd'es pnee rariance $ $ales rolume wriance $
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Direct materials (26 lbs. @ $S per lb.) Dfrect labcsr (10 hrs. @ $tO per hr.)
Production in units $tandard dinect labor hours Budgeted overhead
Fixed farclory orerhead
Direct labor (280,000 hrs. @ $10 per hr.)
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Ar ;si g nrnent Pri rrt M er o, ffi offio're
$o$o$offi
Workshrret
sxercise 2t-4 Freparafion ofa llexrble Sudgef Learning Objer:tire: 21-P1 Prepare a flexible budget perf*mtitnce reporf L.O. P1 and interpret a llexibte budget p*rforrnance report"
E:rercr'se 21-12 Computing and interpretLng sates \mriances L.O. Al Comp Wiz sells computers. Dudng May 2011, it sold 700 comput,:rrs at a $1,(100 a\erage pdce each. The May 20'lt fxed budget included sds of750 computem at an a\Er€tle price of$970 each.
(1) Compute the sales pdce \rariance and the sales rolume rariance br May 201'1. (lnput all amounts as a posithre value. lndieate the elfect of each variance by r*lecting "F" for favorable, "U" for unfavorable, and 'None" for no effect {i.e,, zero variance}. Leave no cells blank - be certain to enter "0" wherever required. Ornit the "$" sign in your resp,onse).
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Fxercrse :)-1^12 Cornpufrng anrt' rnferprefrng safes Learning Object se: 21-A1 Aralyze changes in sales variance's L.O" AI from eryected a 'n sunts.
Prrrblem 21 .-1 A Campufa tian af maferra ls, labar, and ouerftea d wriances L" O. P2, P3 [The following informatian applies fo fhe guesfions disp/aye d below.]
Tuna Compary set the following standard unit costs for its single produr:t.
Factory overtrea**wriable (10 hrs. @ $0 per hr.) 60.00 Factory ove*read-fixed (10 hrs. @ $g per hr.) 90.00
Total stanclarrd cost $ 380.00
The predetemrined owrhead rate is based on a flanned opeEting \olunr're of 6006 of the produoti\e capacity of 40,000 units per guafter. The fiClodng fexible budget information is a'ailable.
Operating Lewi,:;
$ 130.00 f 00.00
50% 60% 70s/o 20,000 24,000 29,000
200,000 240,000 290,000
$ 2,160,000 $ 2,160,000 $ 2,160,000 Vmffiehcttyouefread $1,200,000 $1,,140,000 $1,680,000
Dudng the cunent quarter, the company op€mted at 70% of capacity anri produced 28,000 units of product; actual direct labor totaled 274,NO houts. Units ptoduced werc assigned the follorving standard ccts:
Direct matedals O28,000 lbs. @ $5 per lb.) $ 3,&f0,000 2,800,000
3/10
qTlB AieignrnertPrintViav Factory crcfiead (280,000 hrc. @ $15 per hr.) 4,200,00t) Total stilndard cost $ 10,6110,00{l
Actual costs incuned during the current quarter follorru:
Direct rnaterials (723,000 lbs. @ $5.t0; $ 3,687,300 Direct la;bor Q74,AAA hrs. @ $9.75) Fixed ftrctory or,erhead costs Variable factory olerhead costs
Total actual costs
2,671,500 2,429,911 2,274,717
$ 1 1,063,329
Section Br,eak Problem 21-1A ('.iompulalion of mateials, labor, and overhead vaian,'Bs L.O. P2, P3
6.
Problem 21-14 Part 1 Requlnrd: L C;ompute the ditect matedals ccst \6dance, including its price and quantity \rariances. {Do not round
your intermediate calculations. lndicale the efiect of rr'ach variance by selecting "F" for fEvotflble, 'U" for unfayorable, and "None" for no effect (i.'e., zero vartancel.lnput all amounts as po$tive values. Leave no cells blank . be certain lo errter "0" wheravar rcquired. Omit ihe "$" dgn in your response.)
Direct rnaterials cost rariance $ E:T Price wriance
Quaffiity rariance
Workshieet
Problem 21-l A Part I
u:=tr.re Learning Objective: 21-P3 Campute owrhead \€riances.
Learning Objectile : 21 -?2 Ccmpute materials and labar variances,
7.
Prablem 21-1A Part 2 2. Compute the diGct labor rariance, including its rate and efici'gncy rariances. {Do not round your
intermediata calculaticns. lndicate the effect of each vari:rrnce by selecting "F'for favorable, "U" for unfavorable, and 'None" for no effect (i,e., zeto yat, ance). lnput all amounts as posilive value,s, Leave no cells blank - be certain ta enter "0" wherever required. Ornit lhe "$" sign in y<rur rersponse.)
Direcl,laborcost\Brlance $ E:-- F] Ratonriance $ Er --J]l Eficiencyrariance $ E:- f-]
Worksheret
Pro,b /em 2l -I A Parf 2
Learning Objective: 21-P3 Compute overhead \ffiriances.
Learning Objective: 21 -P2 Conpute materials and labar lariances.
B.
Problem 21-lAPart 3 3. Compule the owrhed controllaHe and \olume rariances. (lndlctrte lhe effect of each variance by
selecting "F'for favorable, "U" for unfavorable, and 'None" for no etfect {i.e., zero variance).
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Ml13 ArsigrrnerftPrintMer lnput all amounts as podtlve values Leave no cells blank - be certaln ta enter'0" wh€rever required. Omit the "$" dgn in your response.)
Corrtrdlable wriance $ Fi:red orerhead rolume rariance $
Works,he et
Problem 21-1A Part 3 Learn i n g Obj e. :;tive : 21 -?2 Corn pute rn ate ri al s an d {abar mriancerr.
Problem ,71-3A Preparation and analysis af a flexibte budget L.(;. P1 [fhe following information applies to the guestions displayed below.J
Pebco Company's 2011 master budget included the following fixed burlget report. ft is based on an expected production and sales rolume of 15,000 units.
PEBCO COMPANY Fixed Budget Report
For Year Ended December 31 , 2A11 $ 3, 1 50,00 0
Learning Objective: 21-P3 Cam pute oierhead rmriances.
Sales Cost of gorods sold
Direct materials Direct lalbor
General and administratiw expenses Adwrtising expense Salaries Entertaiinment expense
Income forn opemtions
315,000 195,000 210,000 1,920,0(10
$ 945,000 210,000
Machinery repairs (uriable cost) 45,000 Depreciartiorr-plant equipment tJtilities {:$60,000 is variable) Plant management salaries
Gross prrfit Selling expenses
Packagring Shipping Sales salary (fixed annual amount) 235,000 400,00,1)
1,230,0(r0
75,000 90,000
125,000 241,OAO
85,000 451,001)
9.
Totial wriable costs
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Variatlle sales
EA$0 Variatile costs
$ 379,00t}
SectionEkeak Frablem 2|-AAPteparation and analysisof af,exible budget L.O. PI
Problem 21-SA Part 1 {. Classify all items listed in the fxed budget as sdable or fixed. Also determine their amdlnts per unit or
their arnounts fur the year, as appropriate. {Round your variirble amount ans,uers to 2 decimal places. Omit the "$' dgn in your response,)
Vanable or Fixed Classifcation Amol,'nt
Dirrect labor v
Dinsct materials V
Utilities tF
Sihippins v
Machinery repairs !r
Piackaging !
$ .oo .m
"00 .00
.00
.00
$0
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2t -3A Part I
Problem 2.
e costs
forn operations
Problem -3,4 Pad 2
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w:21*P1 ?repare a fiexible budget
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lt,-3A Part 2 frexiHe budgnts for the cornpany at sdes w*umes of ,000 and 16,t)00 units" {Round ysur variable e rnountnit anwsErs to 2 decimal places. lnput all amsunts a podtive values Omit t*re *$- si$* in your response.)
PEBCO Af{Y Flex Budgets
For Year Ended 31,2011 ile Budget
Yafiable Amount Fer Unit
Total Fixed Cost
FlexiHe Budget for Unit Sales cf14,WA
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FlexiHe Budget fm Unit $ales of 16,0fr1
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Learning Objecti :21-F'l Frepare a flexible budget blu
ryd.ge"t yerrormance reporr.
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and interpreta fr
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