Budgeting material purchases.
Production Budget: Finished Goods (units) 50,000 23,000 73,000 21,000 52,000
sales Add target ending finished goods inventory requirements Deduct beginning finished goods inventory Units to be produced Direct Materials P
(30 min.) Price and efficiency variances, journal entries. Direct materials and direct manufacturing labor are analyzed in turn:
Actual Costs Incurred (Actual Input Qty. * Actual Price) Flexible Budget (Budgeted Input Qty. Allowed for Actual Outpu
3 .Award Plus should accept the speicla order: Increase in operating income by selling 3000 units under the special order: $145,500 (requirement 1) Operating income lost from existing customerss($10*8,000) (80,000) Net effect on operating income of accept