Homework Help is Here – Start Your Trial Now!
Business
Accounting
Using the data below, answer the questions about the Direct Materials Cost (DMC) variances and the Direct Labor Cost (DLC) variances. i. Who is responsible for the favorable DMC variance of $204,000? ii. What are the two likely causes for the favorable DMC of $204,000? iii. Who is responsible for the unfavorable DMC variance of $100,000? iv. What are the two likely causes for the unfavorable DMC of $100,000? v. What are the two likely causes for the favorable DLC variance of $153,000? vi. What are the two likely causes for the unfavorable DLC variance of $72,000? Flexible Sales Master Budget Flexible Volume (Static) Actual Variance F/U Budget Variance F/U Budget Sales volume (units) 51,000 51,000 4,000 F 47,000 Sales revenue $ 3,315,000 $ 357,000 $ 3,672,000 $ 288,000 $ 3,384,000 U F Variable costs: Direct materials cost 1,071,000 204,000 F 1,275,000 100,000 U 1,175,000 Direct labor cost 765,000 153,000 F 918,000 72,000 U 846,000 Overhead cost - variable 510,000 102,000 U 408,000 153,000 32,000 U 376,000 Selling, General Admin costs - variable Total variable costs 204,000 2,550,000 141,000 2,538,000 51,000 U 12,000 204,000 F 2,754,000 216,000 U Contribution margin 765,000 153,000 U 918,000 72,000 846,000 Ciuad se.

Using the data below, answer the questions about the Direct Materials Cost (DMC) variances and the Direct Labor Cost (DLC) variances. i. Who is responsible for the favorable DMC variance of $204,000? ii. What are the two likely causes for the favorable DMC of $204,000? iii. Who is responsible for the unfavorable DMC variance of $100,000? iv. What are the two likely causes for the unfavorable DMC of $100,000? v. What are the two likely causes for the favorable DLC variance of $153,000? vi. What are the two likely causes for the unfavorable DLC variance of $72,000? Flexible Sales Master Budget Flexible Volume (Static) Actual Variance F/U Budget Variance F/U Budget Sales volume (units) 51,000 51,000 4,000 F 47,000 Sales revenue $ 3,315,000 $ 357,000 $ 3,672,000 $ 288,000 $ 3,384,000 U F Variable costs: Direct materials cost 1,071,000 204,000 F 1,275,000 100,000 U 1,175,000 Direct labor cost 765,000 153,000 F 918,000 72,000 U 846,000 Overhead cost - variable 510,000 102,000 U 408,000 153,000 32,000 U 376,000 Selling, General Admin costs - variable Total variable costs 204,000 2,550,000 141,000 2,538,000 51,000 U 12,000 204,000 F 2,754,000 216,000 U Contribution margin 765,000 153,000 U 918,000 72,000 846,000 Ciuad se.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 20MCQ: A firm comparing the actual variable costs of producing 10,000 units with the total variable costs...
See similar textbooks
icon
Related questions
Question

Please answer the following questions using this chart. 

Using the data below, answer the questions about the Direct Materials Cost (DMC) variances and the Direct Labor Cost (DLC) variances. i. Who is responsible for the favorable DMC variance of $204,000? ii. What are the two likely causes for the favorable DMC of $204,000? iii. Who is responsible for the unfavorable DMC variance of $100,000? iv. What are the two likely causes for the unfavorable DMC of $100,000? v. What are the two likely causes for the favorable DLC variance of $153,000? vi. What are the two likely causes for the unfavorable DLC variance of $72,000? Flexible Sales Master Budget Flexible Volume (Static) Actual Variance F/U Budget Variance F/U Budget Sales volume (units) 51,000 51,000 4,000 47,000 Sales revenue $ 3,315,000 $ 357,000 U $ 3,672,000 $ 288,000 $ 3,384,000 F Variable costs: Direct materials cost 1,071,000 204,000 1,275,000 100,000 1,175,000 Direct labor cost 765,000 153,000 F 918,000 72,000 846,000 Overhead cost - variable 510,000 102,000 408,000 32,000 376,000 Selling, General Admin costs - variable 204,000 2,550,000 51,000 204,000 153,000 2,754,000 12,000 216,000 141,000 2,538,000 Total variable costs F U Contribution margin 765,000 153,000 U 918,000 72,000 846,000 Fixed costs:
Transcribed Image Text:Using the data below, answer the questions about the Direct Materials Cost (DMC) variances and the Direct Labor Cost (DLC) variances. i. Who is responsible for the favorable DMC variance of $204,000? ii. What are the two likely causes for the favorable DMC of $204,000? iii. Who is responsible for the unfavorable DMC variance of $100,000? iv. What are the two likely causes for the unfavorable DMC of $100,000? v. What are the two likely causes for the favorable DLC variance of $153,000? vi. What are the two likely causes for the unfavorable DLC variance of $72,000? Flexible Sales Master Budget Flexible Volume (Static) Actual Variance F/U Budget Variance F/U Budget Sales volume (units) 51,000 51,000 4,000 47,000 Sales revenue $ 3,315,000 $ 357,000 U $ 3,672,000 $ 288,000 $ 3,384,000 F Variable costs: Direct materials cost 1,071,000 204,000 1,275,000 100,000 1,175,000 Direct labor cost 765,000 153,000 F 918,000 72,000 846,000 Overhead cost - variable 510,000 102,000 408,000 32,000 376,000 Selling, General Admin costs - variable 204,000 2,550,000 51,000 204,000 153,000 2,754,000 12,000 216,000 141,000 2,538,000 Total variable costs F U Contribution margin 765,000 153,000 U 918,000 72,000 846,000 Fixed costs:
TII. VVNO IS responsibiIe for the uniavorabie DMC vanance of pT00,000 ? iv. What are the two likely causes for the unfavorable DMC of $100,000? v. What are the two likely causes for the favorable DLC variance of $153,000? vi. What are the two likely causes for the unfavorable DLC variance of $72,000? Flexible Sales Master Budget Flexible Volume (Static) Actual Variance F/U Budget Variance F/U Budget Sales volume (units) 51,000 51,000 4,000 47,000 Sales revenue $ 3,315,000 $ 357,000 U $ 3,672,000 $ 288,000 $ 3,384,000 F Variable costs: Direct materials cost 1,071,000 204,000 F 1,275,000 100,000 1,175,000 Direct labor cost 765,000 153,000 F 918,000 72,000 846,000 Overhead cost - variable 102,000 408,000 510,000 204,000 2,550,000 32,000 376,000 153,000 2,754,000 Selling, General Admin costs - variable 51,000 U 12,000 216,000 141,000 2,538,000 Total variable costs 204,000 Contribution margin 765,000 153,000 U 918,000 72,000 F 846,000 Fixed costs: Overhead cost - fixed 114,000 6,400 F 120,400 120,400 Selling, General Admin costs - fixed 69,000 2,000 4,400 U 67,000 187,400 67,000 187,400 Total fixed costs 183,000 Net operating income $ 582,000 $ 148,600 U $ 730,600 $ 72,000 $ 658,600 ככככ כ
Transcribed Image Text:TII. VVNO IS responsibiIe for the uniavorabie DMC vanance of pT00,000 ? iv. What are the two likely causes for the unfavorable DMC of $100,000? v. What are the two likely causes for the favorable DLC variance of $153,000? vi. What are the two likely causes for the unfavorable DLC variance of $72,000? Flexible Sales Master Budget Flexible Volume (Static) Actual Variance F/U Budget Variance F/U Budget Sales volume (units) 51,000 51,000 4,000 47,000 Sales revenue $ 3,315,000 $ 357,000 U $ 3,672,000 $ 288,000 $ 3,384,000 F Variable costs: Direct materials cost 1,071,000 204,000 F 1,275,000 100,000 1,175,000 Direct labor cost 765,000 153,000 F 918,000 72,000 846,000 Overhead cost - variable 102,000 408,000 510,000 204,000 2,550,000 32,000 376,000 153,000 2,754,000 Selling, General Admin costs - variable 51,000 U 12,000 216,000 141,000 2,538,000 Total variable costs 204,000 Contribution margin 765,000 153,000 U 918,000 72,000 F 846,000 Fixed costs: Overhead cost - fixed 114,000 6,400 F 120,400 120,400 Selling, General Admin costs - fixed 69,000 2,000 4,400 U 67,000 187,400 67,000 187,400 Total fixed costs 183,000 Net operating income $ 582,000 $ 148,600 U $ 730,600 $ 72,000 $ 658,600 ככככ כ
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Determination of Tax Liability
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS