M4 Problems E23-16 E23-19 E23-20 CP23-36 – Excel sheet.
Please complete the following
exercises and/or problems:
Prepare your answers in an Excel
workbook, using one worksheet per exercise or problem.
E23-16 Preparing a flexible budget performance report
Pro Company managers received the following incomplete performance report:
STENBACK PRO COMPANY
Flexible Budget Performance Report
For the Year Ended July 31, 2014
Flexible Budget Flexible Sales Static
Units 39,000 (a) 39,000 3,000 F (g)
Revenue $218,000 (b) $218,000 $27,000 F (h)
Expenses 84,000 (c) 81,000 10,000 U (i)
Margin $134,000 (d) 137,000 17,000 F (j)
Expenses 108,000 (e) 101,000 0 (k)
Income $ 26,000 (f) $36,000 17,000 F (l)
the performance report. Identify the employee group that may deserve praise and
the group that may be subject to criticism. Give your reasoning.
E23-19 Calculating materials and labor variances
Fender, which uses a standard cost accounting system, manufactured 20,000 boat
fenders during 2014, using 144,000 square feet of extruded vinyl purchased at $1.05
per square foot. Production required 420 direct labor hours that cost $13.50 per
hour. The direct materials standard was 7 square feet of vinyl per fender, at a
standard cost of $1.10 per square foot. The labor standard was 0.025 direct
labor hour per fender, at a standard cost of $12.50 per hour.
the cost and efficiency variances for direct materials and direct labor.
E23-20 Computing overhead variances
the data from Great Fender given in Exercise E23-19. Consider the following
budget variable overhead $ 5,500
budget fixed overhead $ 22,000
budget direct labor hours 550 hours
budget number of units 22,000 units
Fender allocates manufacturing overhead to production based on standard direct
labor hours. Great Fender reported the following actual results for 2014:
variable overhead, $4,950; actual fixed overhead, $23,000.
Compute the overhead variances for the year: variable overhead cost variance, variable
overhead efficiency variance, fixed overhead cost variance, and fixed overhead
Explain why the variances are favorable or unfavorable
P23-36 Calculating materials and labor variances and preparing journal
continues the Davis Consulting, Inc. situation from Problem P22-56 of Chapter
22. Assume Davus gas created a standard cost card for each job, Standard direct
materials include14 software packages a cost of $900 per package. Standard
direct labor costs per job include 90 hours at $120 per hour. Davis plans on
completing 12 jobs during March 2013.
Actual direct materials costs for March included 90 software packages at
a total cost of $81,450. Actual direct labor costs included 100 hours per job
at an average rate of $125 per hour. Davis completed all 12 jobs in March.
direct materials cost and efficiency variances.
direct labor cost and efficiency variances.
journal entries to record the use of both materials and labor for March for the
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