Lisa Baldwin was a bit anxious as she created the year-end performance reports. She remembered how...

Transcribed Image Text:

Lisa Baldwin was a bit anxious as she created the year-end performance reports. She remembered how management had hoped the economy would make a favorable turn, taking pressure off consumers so they'd feel more comfortable spending on the company's splurge item-a luxurious hooded cotton robe. Alas, actual production and sales ended at 6,000 units, a whopping 1,000 units shy of the company's original budget. The following information presents the company's actual income statement and other key information for Lisa. Actual Income Sales Variable costs: DM DE Variable MOH Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income $906,000 211.500 (for 14.100 yards purchased and used) 84,240 (for 4,320 hours used) 56,400 553,860 241,110 241.800 $70,950 Standards are as follows. Direct materials Direct labor Variable-MOH Fixed-MOH Standard Quantity per Unit 2.40 yards 0.70 DL hours 2.40 yards 2.40 yards Additional master budget information: Selling price $171 Fixed SG&A expense $287.400 Standard Price $16.00 per yard $20.00 per DL hour $5.00 per yard $15.00 per yard Sales Less: Variable costs: Direct materials Direct labor Variable- MOH Contribution margin Less: Fixed costs Fixed-MOH SG&A Operating income Actual $906,000 211,500 84,240 56,400 $553,860 $ 241,110 241,800 $ $70,950 $ Flexible Budget Variances $ $ Flexible Budget Lisa Baldwin was a bit anxious as she created the year-end performance reports. She remembered how management had hoped the economy would make a favorable turn, taking pressure off consumers so they'd feel more comfortable spending on the company's splurge item-a luxurious hooded cotton robe. Alas, actual production and sales ended at 6,000 units, a whopping 1,000 units shy of the company's original budget. The following information presents the company's actual income statement and other key information for Lisa. Actual Income Sales Variable costs: DM DE Variable MOH Contribution margin Fixed costs: Fixed-MOH Fixed SG&A Operating income $906,000 211.500 (for 14.100 yards purchased and used) 84,240 (for 4,320 hours used) 56,400 553,860 241,110 241.800 $70,950 Standards are as follows. Direct materials Direct labor Variable-MOH Fixed-MOH Standard Quantity per Unit 2.40 yards 0.70 DL hours 2.40 yards 2.40 yards Additional master budget information: Selling price $171 Fixed SG&A expense $287.400 Standard Price $16.00 per yard $20.00 per DL hour $5.00 per yard $15.00 per yard Sales Less: Variable costs: Direct materials Direct labor Variable- MOH Contribution margin Less: Fixed costs Fixed-MOH SG&A Operating income Actual $906,000 211,500 84,240 56,400 $553,860 $ 241,110 241,800 $ $70,950 $ Flexible Budget Variances $ $ Flexible Budget

Answer rating: 100% (QA)

CALCULATIONS Given Actual Sales 906000 Actual Variable Costs Direct Mat... View the full answer