A C D E Click in the boxed area beneath the word "Budget," and use the associated pick list to select alternative volume levels. The budget column values change (i.e., "flexible") based on volume. Examine the results and respond to the question at the bottom of the page, which will turn green upon selecting the correct response. Variable Manufacturing Direct material Direct labor Variable factory overhead B Total variable costs Fixed factory overhead Total manufacturing costs > Problem Budget Analysis for June, 20XX Actual $ Budget 11,000 units $ 442,000 $ 440,000 328,000 330,000 215,000 220,000 985,000 990,000 255,000 250,000 $ 1,240,000 $ 1,240,000 $ Which level of volume is consistent with the manager's claim? >>>> $ $ Variance (2,000) 2,000 5,000 5,000 (5,000) 11,000 units F
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Standard DM price per pound (Lbs): $20
Standard DM needed per unit: 2 Lbs
Standard DL rate: $15 per hour
Standard DL hours per unit: 2 hours of Direct Labor per unit
*The actual DM used for 11000 units of production is 24200 lbs which means:
24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit
Actual DL hours: 20000 hours
Variable
*Note: I am helping you here!
- AQ (AP-SP) = DM Price Variance
- (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM)
- $442,000 - (24200 x $20) = DM Price Variance
- 442,000 - 484,000 = DM Price Variance
- $42,000 Favorable DM Price Variance
please answer the following questions:
5. Labor Rate variance:
6. Total Direct labor spending variance:
7. Variable overhead efficiency variance:
8. Variable overhead rate variance
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