Reference no: EM1341257
Flexible Budget, Direct Materials and Direct Manufacturing Labor Variances
Tuscany Statuary manufactures bust statues of famous historical figures. All statues are the same size. Each unit requires the same amount of resources. The following information is from the static budget for 2009:
Expected production and sales 5,000 units
Direct materials 50,000 pounds
Direct manufacturing labor 20,000 hours
Total fixed costs $1,000,000
Standard quantities, standard prices, and standard unit costs follow for direct materials and direct manufacturing labor.
Standard Qty Standard $ Standard Unit $
Direct materials 10 pounds $10 / pound $100
Direct Mfg labor 4 hours $40 / hour $160
During 2009, actual number of units produced and sold was $6,000. Actual cost of direct materials used was $594,000, based on 54,000 pounds purchased at $11 per pound. Direct manufacturing labor-hours actually used were 25,000, at the rate of $38 per hour. As a result, actual direct manufacturing labor costs were $950,000. Actual fixed costs were $1,005,000. There was no beginning or ending inventories.
1. Evaluate the sales-volume variance and flexible-budget variance for operating income.
2. Determine price and efficiency variances for direct materials and direct manufacturing labor.
|
Explain what strategies that small businesses
: What strategies that small businesses can use to keep the labor costs under control and Identify at least three feasible strategies and support them with appropriate rationale
|
|
Evaluate industrial labor relation song
: Industrial labor relation song - Find a link on the Internet to a video performance or sound recording of a song that deals with union organizing or a labor dispute.
|
|
What constitutes harassment
: Employment and Labor Law explained in this answer - What constitutes harassment and what is the role of the administrator
|
|
Description of unions
: An increase in automation in manufacturing is the leading cause. Companies' can and will save money by replacing humans with machines. It's kind of eerie."
|
|
Evaluate the sales-volume variance
: Evaluate the sales-volume variance and flexible-budget variance for operating income and Determine price and efficiency variances for direct materials and direct manufacturing labor
|
|
Retirement planning case
: THE CASE - LEONARD AND ROSE DOMINO, Retirement Planning Case assignment. You must clearly state assumptions in your final report in your final report to the clients. Use generic rates throughout your analysis and refer to the OMERS defined ben..
|
|
Sales and marketing paper
: Sales and Marketing Paper, Consider the product or service idea proposed for the Team Business Plan. If you would prefer to write about sales and marketing for another business, ask your professor for permission.
|
|
Sales projections
: Sales Projections, If your business idea does not lend itself to a thorough discussion of all of the following elements, select another business idea or another topic. Use this rubric to do for a Sales Projections papers.
|
|
Detailed swot analysis
: Detailed SWOT Analysis, Overcoming potential threats to your success is a key to this topic. Risk analysis will be a crucial element for this paper. If your business idea does not lend itself to a thorough discussion of all of the following elements..
|