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SoundSmart manufactures headphone cases. During September 2018, the company produced and sold 106,000 cases and recorded the following cost data: (Click the icon to view the cost data) Read the requirements Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor Begin with the cost variances Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U) (Abbreviations used. AC = actual cost, AQ - actual quantity, FOH - fored overhead, SC standard cost SQ standard quantity) Formula Variance Direct materials cost variance Direct labor cost variance Next compute the efficiency variances Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used AC actual cost, AQ - actual quantity, FOH fred overhead, SC standard cost, SO standard quantity) Formula Variance Direct materials efficiency variance Direct labor efficiency variance 0 Data Table - X Standard Cost Information Direct Materials $ Quantity 2 parts 0.02 hours 0.02 hours Cost 0.15 per part 9.00 per hour 11.00 per hour ify whether st; SQ = sta Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead (530,720 for static budget volume of 96,000 units and 1,920 hours, or $16 per hour) bor, and idei standard co Actual Cost Information Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead (210,000 parts @ (1.620 hours @ $ $ 0.20 per part) 9.10 per hour) $ 42,000 14.742 rian 14,000 25,000 entd Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the forced overhead cost and volume vanances Now compute the variable overhead cost and efficiency variances Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity, FOH = fixed overhead, SC = standard cost, SQ - standard quantity: VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency variance Now compute the forced overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and identity whether each variance is favorable (F) or unfavorable (U). (Abbreviations used. AC actual cout AQ actual quantity, FOH fixed overhead, SC standard cost, SQ - standard quantity) Formula Variance FOH cost variance FOH volume variance NetTech Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 9,000, 10,500 and 12,500 units. The static budget was based on expected sales of 10,500 units. The company sold 12,500 units during July Its flexible budget and actual operating income was as follows: (Click the icon to view the flexible budget) (Click the icon to view the income statement) Read the requirements NetTech Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 (3) - (5) Sales Budget Amounts Per Unit (1)-(3) Flexible Budget Variance Flexible Actual Results Volume Variance Static Budget Budget Sales Revenue Variable Expenses Choose from any list of enter any number in the input fields and then continue to the next question i Data Table July 2 id 12, NetTech Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Bul 23 $ 9,000 207.000 $ 117,000 10,500 241,500 $ 136,500 12,500 287,500 162,500 Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Am Per 90,000 53.000 37,000 $ 105,000 53,000 52,000 $ 125,000 53,000 72,000 Operating Income 0 Data Table X - Net lexible By For the M Actual Results NetTech Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue 294,500 167,600 Variable Expenses Contribution Margin 126,900 54,000 Fixed Expenses $ 72.900 Operating Income umber in the Print Done NetTech Technologies manufactures capacitors for cellular base stations and other communications applications. The company's output levels of 9.000, 10,500, and 12,500 units. The static budget was based on expected sales of 10,500 units. The company s budget and actual operating income was as follows: (Click the icon to view the flexible budget.) Click the icon to view the income statement.) Read the requirements Variable Expenses Contribution Margin Fixed Expenses Operating Income NetTech Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 9,000. 10.500, and 12,500 units. The static budget was based on expected sales of 10,500 units. The company sold 12.500 units during July Its flexib budget and actual operating income was as follows: (Click the icon to view the flexible budget) (Click the icon to view the income statement) Read the requirements Requirement 2. What was the effect on NetTech's operating income of selling 2.000 units more than the static budget level of sales? Seling 2,000 units more than the static budget level of sales NetTech's operating income by Requirement 3. What is NetTech's static budget variance for operating income? meaning that its operating income is than expected NetTech's static budget variance is 5 per the static budget Requirement 4. Explain why the flexible budget performance report provides more useful information to NetTech's managers than the simple static budget variance, What insights can NetTech's managers draw from this performance report? Choose two reasons why the flexible budget performance report provides NetTech's managers with more information than the simple static budget variance

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