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Beany and Cecil LLC ("B\&C" or "Company") specializes in the production of "beany copters" - a niche toy that has been in production since the early 1960s. The following data reflects what happened from a production/sales point of view during fiscal 2022. In 2021 and 2020, due to the Pandemic and the fad that developed (where people launched their beany copters at the end of every Zoom meeting), B\&C sold Beany Copters at $20.00 /each and was extremely profitable, earning gross margins (manufacturing) of about 42% - mainly because demand for the Copters was so high. Part I - The Initial Budget While B\&C management looked towards 2022 with some degree of optimism, it also recognized that Dishonest John Clones, Inc ("DJ Clone") was going to enter the market with a knock off version of the Beany Copter. Hence B&C management budgeted a sales price of $14.29 per Copter (resulting in a gross margin of 20% ) and total sales of 13,996 Beany Copters. The following is some additional information about the budget. It takes 0.2 hours to manufacture a Beany Copter. Overhead is allocated on the basis of labor hours. Beginning inventory is $40,000 and forecasted ending inventory is $55,000. Please on the above information, please provide the following: A. The standard overhead cost per unit. B. The total budgeted production (in units and in dollars) given the information provided above. C. Total budgeted production in \$s broken into material, labor and overhead components. D. The overhead application rate. E. The total budgeted costs in the overhead pool. F. A brief income statement showing budgeted revenues and cost of sales. Part II - The Actual Results Note the following data about what actually transpired during the year: Based on the above data and certain answers in the first section, please provide the following - A. Total actual (rather than budgeted), material, labor and overhead costs. B. An explanation of whether the unfavorable overhead variance was attributable to a change in the numerator or the denominator in the overhead application rate and a rationale for this conclusion. C. Whether, after taking into account the above variances, B&C made money on sale of Beany Copters (please provide rationale). D. Whether inventory would have to be adjusted up or down for the overhead variance. E. A potential explanation as to why there was an unfavorable material rate variance and a favorable material usage variance

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