PR 7-32, 8-39. AP (1).docx - Adele Peu00f1a(20-0197 Cost...

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Adele Peña (20-0197) Cost Accounting 7-32 1. A) Actual Selling Price = $82.00 Budgeted Selling Price = $80.00 Actual Sales Volume = 7,275 Selling Price Variance = ($82-$80) x 7,275 = $14,550 in favor B) Development of Flexible Budget Budgeted Unit Amounts Actual Volume Flexible Budget Amount Revenues $80.00 7,275 $582,000 Variable Costs DM- Frames $2.20/oz. X 3.00 oz 6.60a 7,275 48,015 Dm- Lenses $3.10/oz. X 6.00 oz 18,60b 7,275 135,315 Direct Manufacturing labor $15.00/hr. x 1.20 hours 18.00c 7,275 130,950 Total variable manufacturing costs 314,280 Fixed manufacturing costs 112,500 Total manufacturing costs 426,780 Gross Margin $155,220
Actual Results Flexible Budget Variances Flexible budget Sales- Volume variances Static Budget Units sold 7,275 7.275 7,500 Revenues $596,550 $14,550 $582,000 $18,000 U $600,000 Variable costs DM Frames 55,872 7,857 U 48,015 1,485 F 49,500 DM Lenses 150,738 15,423 U 135,315 4,185 F 139,500 Direct manufacturing labor 145,355 14,405 U 130,950 4,050 F 135,000 Total variable costs 351,965 37,685 U 314,280 9,720 F 324,000 Fixed manufacturing costs 108,398 4,102 F 112,500 0 112,500 Total costs 460,363 33,583 U 426,780 9,720 F 436,500 Gross margin $136,187 $19,033 U $155,220 $8,280 U $163,500 $19,033 U $8,280 U Level 2 ^------------------------------------------^-------------------------------------------- ^ Flexible Budget VarianceSales Volume Variance $27,313 U Level 1 ^---------------------------------------------------------------------------------------- ^ Static Budget Variance C) Price and Efficiency Variances DM Frames - Actual ounces used = 3.20 per unit x 7,275 units = 23,280 oz.
Price per oz. = $55,872 / 23.280 =

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