Sturdy Manufacturing Co. Budget vs. Plan Performance Report for Year 1 Sturdy Manufacturing Co. Budget vs....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sturdy Manufacturing Co. Budget vs. Plan Performance Report for Year 1 Sturdy Manufacturing Co. Budget vs. Plan Performance Report for Year 1 ($000s) Budget Actual Net revenue $260,000 $248,000 Variable expenses 156,000 148,800 Fixed costs 39,000 37,500 Operating Income 65,000 61,700 Sturdy Manufacturing Co. Direct Material and Labor (Usage) for Year 1 Sturdy Manufacturing Co. - Direct Material and Labor (Usage) for Year 1 Direct Materials Actual quantity purchased 750,000 units Actual quantity used 720,000 units Units standard quantity 700,000 units Actual price paid $75.00 per unit Standard price $78.00 per unit Direct Labor Direct Labor Actual hours worked 2,825,000 Standard hours 3,000,000 Actual paid rate Standard rate $22.50 $20.00 Sturdy Manufacturing Co. Manufacturing Overhead Variance for Year 1 Sturdy Manufacturing Co. Manufacturing Overhead Variance for Year 1 Sturdy Manufacturing Co. produces metal cabinets and applies overhead costs based on direct labor hours. Number of Cabinets Budgeted number of cabinets to be produced Actual number of cabinets produced 150,000 141,250 Labor Hours Standard labor hours required per cabinet 21 21 Standard labor hours per actual 2,966,250 production Actual labor hours used 2,825,000 Variable Overhead (VOH) 2 Standard VOH rate per hour $10.00 per hour Actual VOH rate per hour $9.50 per hour Fixed Overhead (FOH) Standard FOH per hour Budgeted FOH costs Actual FOH costs $14.00 per hour $44,100,000 $39,550,000 Scroll down to complete all parts of this task. The management of Sturdy Manufacturing Co. is reviewing its operating performance for Year 1. In order to complete its tactical production plan for the fiscal year, the accounting and production departments are preparing variance analysis reports for operating performance, direct materials, direct labor, and manufacturing overhead. Using the information included in the exhibits above, complete the tables below. Table 1: For each item in column A, determine whether the budget vs. plan variance was "Favorable" or "Unfavorable" by selecting from the option list provided in column B. 1 Net revenue 2 Variable expenses 3 Fixed costs 4 Operating income B Table 2: For each variance in column A, indicate the absolute value of the dollar amount of the variance in column 8 and indicate whether the variance was "Favorable" or "Unfavorable" from the option list provided in column C. Sturdy Manufacturing Co. Budget vs. Plan Performance Report for Year 1 Sturdy Manufacturing Co. Budget vs. Plan Performance Report for Year 1 ($000s) Budget Actual Net revenue $260,000 $248,000 Variable expenses 156,000 148,800 Fixed costs 39,000 37,500 Operating Income 65,000 61,700 Sturdy Manufacturing Co. Direct Material and Labor (Usage) for Year 1 Sturdy Manufacturing Co. - Direct Material and Labor (Usage) for Year 1 Direct Materials Actual quantity purchased 750,000 units Actual quantity used 720,000 units Units standard quantity 700,000 units Actual price paid $75.00 per unit Standard price $78.00 per unit Direct Labor Direct Labor Actual hours worked 2,825,000 Standard hours 3,000,000 Actual paid rate Standard rate $22.50 $20.00 Sturdy Manufacturing Co. Manufacturing Overhead Variance for Year 1 Sturdy Manufacturing Co. Manufacturing Overhead Variance for Year 1 Sturdy Manufacturing Co. produces metal cabinets and applies overhead costs based on direct labor hours. Number of Cabinets Budgeted number of cabinets to be produced Actual number of cabinets produced 150,000 141,250 Labor Hours Standard labor hours required per cabinet 21 21 Standard labor hours per actual 2,966,250 production Actual labor hours used 2,825,000 Variable Overhead (VOH) 2 Standard VOH rate per hour $10.00 per hour Actual VOH rate per hour $9.50 per hour Fixed Overhead (FOH) Standard FOH per hour Budgeted FOH costs Actual FOH costs $14.00 per hour $44,100,000 $39,550,000 Scroll down to complete all parts of this task. The management of Sturdy Manufacturing Co. is reviewing its operating performance for Year 1. In order to complete its tactical production plan for the fiscal year, the accounting and production departments are preparing variance analysis reports for operating performance, direct materials, direct labor, and manufacturing overhead. Using the information included in the exhibits above, complete the tables below. Table 1: For each item in column A, determine whether the budget vs. plan variance was "Favorable" or "Unfavorable" by selecting from the option list provided in column B. 1 Net revenue 2 Variable expenses 3 Fixed costs 4 Operating income B Table 2: For each variance in column A, indicate the absolute value of the dollar amount of the variance in column 8 and indicate whether the variance was "Favorable" or "Unfavorable" from the option list provided in column C.
Expert Answer:
Answer rating: 100% (QA)
The provided information contains a budget vs plan performance report for Sturdy Manufacturing Co fo... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
Sippican Corporation (A)* The decline in our profits has become intolerable. The severe price cutting in pumps has dropped our pre-tax margin to less than 2%, far below our historical 15% margins....
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
A company begins 2022 (1/1/2022) with $0 of supplies. During the year the company purchases $5 of supplies. If the company reports $4 of supplies expense, what is the supplies inventory reported on...
-
Julie Hernandez is single and has no dependents. She operates a dairy farm and her Social Security number is 000-00-1111. She lives at 1325 Vermont Street in Costa, Florida. Consider the following...
-
Stevens Corporation, during the year ended October 31, 2015, had the following transactions for money market instruments purchased to earn interest: Jan. 2 Purchased a 120-day, $40,000 treasury bill...
-
Required: Calculate the missing amounts for companies A to E. $3,000 $1,000 ?$6,000 $2,500 Cash Equipment Accounts payable 4,000? 1,500 3,000 4,500 Share capital Retained earnings 8,000 6,000 4,000...
-
Determine the defect frequencies in hertz* corresponding to roller, inner race, outer race, and cage defects for a roller bearing with 18 rollers when installed in a machine that runs at a speed of...
-
Cergo Computers constructed a new training center in 2014, which you have been hired to manage. A review of the accounting records shows the following expenditures debited to an asset account called...
-
Pressure What phase transition is indicated by the arrow shown in the phase diagram below? Temperature
-
Im making a website with a rectangle and a ball that bounces inside the rectangle. The ball slowly comes to a stop over time. The user can control the velocity of the ball both horizontally and...
-
How to change particle velocity in an isobaric flow field? How to change the velocity of a fluid particle regardless of mass force?
-
In an ideal fluid, what are the main factors that change the motion of a fluid particle?
-
Fill in the Blank. Undamped vibration is characterized by no loss of ________.
-
What is a system? What is the control volume? Explain the differences between the system and the control volume.
-
The physical meaning of Reynolds transport equation? What are the conditions for the Reynolds transport equation?
-
B. Unity of Roots 2 1. z = 12i 4 2. z* = -2 5i 3. z=(-3+2i)
-
If the jobs displayed in Table 18.24 are processed using the earliestdue-date rule, what would be the lateness of job C? TABLE 18.24 Processing Times and Due Dates for Five Jobs Job C D E...
-
Review your results from Short Exercise SC-10. Requirements 1. Total each column of the cash payments journal. 2. Open the following four-column accounts in the accounts payable subsidiary ledger:...
-
TXL Advertising paid $250,000 to acquire Seacoast Report, a weekly advertising paper. At the time of the acquisition, Seacoast Report's balance sheet reported total assets of $140,000 and liabilities...
-
Consider the following situations for Kirkland Welding Services: a. Depreciation for the current year includes equipment, $2,700. b. Each Monday, Kirkland pays employees for the previous weeks work....
-
For installation and operation of a pipeline for an incompressible fluid, the total cost (in dollars per year) can be represented as follows: \[C=C_{1} D^{1.5} L+C_{2} m \Delta p / ho\] where...
-
Heavy fuel oil, initially semisolid at $15^{\circ} \mathrm{C}$ is to be heated and pumped through a $15 \mathrm{~cm}$ diameter (inside) pipe at the rate of $20000 \mathrm{~kg} / \mathrm{h}$. The pipe...
-
We are interested to produce $P$ in the reaction $A ightarrow P$ using a continuous reactor at $v=240$ liters/ hr with $C_{A_{0}}=3$ moles/liter. However, it is noticed that there is a second...
Study smarter with the SolutionInn App