Backpack Inc. reported the following actual and budgeted results for 2021. Actual 200,000 150,000 $20 Budgeted Backpack production Backpacks sold Selling price Direct materials per backpack Direct labor per backpack Direct materials used in yards Direct material costs Direct manufacturing hours used Direct labor costs 190,000 160,000 $18 1.5 yards @ $2.00 0.5 hr. @ $14 290,000 $580,000 140,000 $1,820,000 $900,000 Fixed manufacturing overhead costs $825,000 Required: (a) Calculate the direct materials price and efficiency variances. (b) Calculate the direct labor price and efficiency variances. (c) Fixed overhead flexible budget and production volume variances (d) Calculate the flexible budget variance for sales revenue.

Backpack Inc. reported the following actual and budgeted results for 2021. Actual 200,000 150,000 $20 Budgeted Backpack production Backpacks sold Selling price Direct materials per backpack Direct labor per backpack Direct materials used in yards Direct material costs Direct manufacturing hours used Direct labor costs 190,000 160,000 $18 1.5 yards @ $2.00 0.5 hr. @ $14 290,000 $580,000 140,000 $1,820,000 $900,000 Fixed manufacturing overhead costs $825,000 Required: (a) Calculate the direct materials price and efficiency variances. (b) Calculate the direct labor price and efficiency variances. (c) Fixed overhead flexible budget and production volume variances (d) Calculate the flexible budget variance for sales revenue.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 3PB: TIB makes custom guitars and prepared the following sales budget for the second quarter It also has...

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