90.2K

Verified Solution

Link Copied!

Comprehensive variance analysis review. Andrew Scheid Ltd manufactures kitchen cabinets. The company's budget for fixed costs per month is $7,500 and budgeted variable costs per cabinet are: Direct materials

15 sq. meter at $4.50 per sq. meter

$67.50

Direct labor

5 hours at $6 per hour

$30.00

Variable costs

5 hours at $3 per labor hour

$15.00

The company had budgeted to make and sell 1,000 cabinets per month at a selling price of $150 each. However, in June, the actual figures were as follows:

Sales

1,400 units

$212.800

Direct materials

22,000 sq. meter

$121,000

Direct labor

6,800 hours

$ 34.000

Variable costs

6,800 hours

$ 15,000

Fixed costs

$ 6.000

Calculate the following:

1. Static-budget and actual operating income
2. Static-budget variance for operating income
3. Flexible-budget operating income
4. Flexible-budget variance for operating income
5. Sales-volume variance for operating income
6. Price and efficiency variances for direct manufacturing labor
7. Flexible-budget variance for direct manufacturing labor

7.36. Comprehensive variance analysis review. Andrew Scheid Lid manufactures kitchen cabinets. The company's budget for fixed costs per month is 57.500 and budgeted variable costs per cabinet are: The company had budgeted to make and sell 1000 cabinets per month at a selling price of $150 each. However, in Janc, the actual figures were as follows: Calculate the following: 1. Static-budget and actual operating income 2. Stabe-budfet variance for operating income 3. Fexible-badget operating income 4. Fexble-badect variance for operatine income Calculate the following: 1. Static-budget and actual operating income 2. Static-budget variance for operating income 3. Flexible-budget operating income 4. Flexible-budget variance for operating income 5. Sales-volume variance for operating income 6. Price and efficiency variances for direct manufacturing labor 7. Flexible-budget variance for direct manufacturing labor

Answer & Explanation Solved by verified expert

See Answer