Peaceful Corporation manufactures figurines based on the following information.
|Materials (4 ounces at $5)||$8|
|Direct labor (1 hour per unit)||$4|
|Variable overhead (based on direct labor hours)|
|Fixed overhead budget||$19,000|
|Actual results and costs|
|Materials used in production|
|Finished product units||2,000|
|Raw material (ounces)||8,200|
|Direct labor hours||2,000|
|Direct labor cost||$20,000|
|Variable overhead costs||$5,980|
|Fixed overhead costs||$19,500|
Compute the following variances (show calculations).
Give one possible explanation for each of the six variances computed in part b.
The following is the current variable costing income statement for Dolly Corporation.
|Sales (5,000 units)||$100,000|
|Variable expenses Cost of goods sold||$35,000|
|Selling (10% of sales)||$10,000||$45,000|
Below is the following information on operations for Dolly Corporation.
|Beginning inventory (units)||0|
|Units produced (units)||6,000|
|Direct labor (per unit)||$5.00|
|Direct materials (per unit)||$2.30|
|Variable overhead (per unit)||$2.40|
Prepare an absorption costing income statement.
The following information was compiled for two models of cell phones.
|3G model||4G model||Average|
|Budgeted Contribution Margin||$80.00||$120.00||$95.25|
|Budgeted Sales in Units||28,000||18,000|
|Actual Sales in Units||28,600||16,500|
Calculate the sales mix variance. (Show your calculations.)