Cellular Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 9,000, 10,500, and 12,500 units. The static budget was based on expected sales of 10,500 units. The company sold 12,500 units during July. Its flexible budget and actual operating income was as follows: Eff (Click the icon to view the flexible budget.) : (Click the icon to view the income statement.) - X i Requirements - X i Data Table Data Table - X 1. Prepare a flexible budget performance report for July. Cellular Technologies 2. What was the effect on Cellular's operating income of selling 2,000 units Flexible Budget more than the static budget level of sales? Cellular Technologies For the Month Ended July 31, 2018 3. What is Cellular's static budget variance for operating income? Budget Income Statement 4. Explain why the flexible budget performance report provides more useful Amount per information to Cellular's managers than the simple static budget variance. For the Month Ended July 31, 2018 Unit What insights can Cellular's managers draw from this performance report? Sales Revenue $ 319,500 Units 9,000 10,500 12,500 180, 100 Variable Expenses Sales Revenue S 25 $ 225,000 $ 262,500 $ 312,500 Print Done Contribution Margin 139,400 Variable Expenses 14 126,000 147.000 175,000 61,000 Sales Revenue Contribution Margin 99.000 115,500 137,500 Fixed Expenses 50,000 Operating Income S 88,400 Variable Expenses Fixed Expenses 50,000 50,000 S 49,000 $ 85,500 S 87,500 Contribution Margin Operating Income Print Done Fixed Expenses Operating Income Print DoneThe May 2018 revenue and cost information for Tulsa Outfitters, Inc. follows: (Click the icon to view the revenue and cost information.) Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management's use. Has management done a good or poor job of controlling costs? Explain. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Tuls Data Table - X Standard For the Mor Sales Revenue (at standard) $ 540,000 Cost of Goods Sold (at standard) 347,000 Direct Materials Cost Variance 700 F Direct Materials Efficiency Variance 6,700 F Direct Labor Cost Variance 4,600 U Direct Labor Efficiency Variance 2,200 F Variable Overhead Cost Variance 3,600 U Variable Overhead Efficiency Variance 700 U Fixed Overhead Cost Variance 1,500 U Fixed Overhead Volume Variance 8,600 F Choose from any list or enter any number Print DoneBest, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Best allocates manufacturing overhead to production based on standard direct labor hours. Best reported the following actual results for 2018: actual number of units produced, 1,000; actual variable overhead, $3,800; actual fixed overhead, $3,500; actual direct labor hours, 1,700. i Requirements - X i Data Table - X OV hula ntify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: sta 1. Compute the variable overhead cost and efficiency variances and fixed Static budget variable overhead $2, 100 overhead cost and volume variances. Static budget fixed overhead $2,800 2. Explain why the variances are favorable or unfavorable. Static budget direct labor hours 1,400 hours Static budget number of units 700 units Print Done Standard direct labor hours 2 hours per unit Print DoneBargain Fender uses a standard cost system and provide the following information: (Click the icon to view the information.) Bargain Fender allocates manufacturing overhead to production based on standard direct labor hours. Bargain Fender reported the following actual results for 2018: actual number of fenders produced, 20,000; actual variable overhead, $5,600; actual fixed overhead, $30,000; actual direct labor hours, 480. i Requirements - i Data Table - X arian nd fixed overhead volume variance. ulas y whether each variance is favorable (F) or unfavorable (U). (You may need to 1. Compute the overhead variances for the year: variable overhead cost Q = Static budget variable overhead $3,640 quantity, VOH = variable overhead.) variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Static budget fixed overhead $29, 120 2. Explain why the variances are favorable or unfavorable. Static budget direct labor hours 728 hours Static budget number of units 26,000 units Print Done Standard direct labor hours 0.028 hours per fender Print DoneBargain Fender uses a standard cost system and provide the following information: (Click the icon to view the information.) Bargain Fender allocates manufacturing overhead to production based on standard direct labor hours. Bargain Fender reported the following actual results for 2018: actual number of fenders produced, 20,000; actual variable overhead, $5,600; actual fixed overhead, $30,000; actual direct labor hours, 480. Requirements - X i Data Table - X arian nd fixed overhead volume variance. ulas fy whether each variance is favorable (F) or unfavorable (U). (You may need to 1. Compute the overhead variances for the year: variable overhead cost Static budget variable overhead $3,640 quantity; VOH = variable overhead.) variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Static budget fixed overhead $29,120 2. Explain why the variances are favorable or unfavorable. Static budget direct labor hours 728 hours Static budget number of units 26,000 units Print Done Standard direct labor hours 0.028 hours per fender Print DoneGrand Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2018, using 141,000 square feet of extruded vinyl purchased at $1.35 per square foot. Production required 420 direct labor hours that cost $14.00 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.40 per square foot. The labor standard was 0.023 direct labor hour per fender, at a standard cost of $13.00 per hour. Read the requirement. i Requirement -X r direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual ice Compute the cost and efficiency variances for direct materials and direct labor. Does the pattern of variances suggest Grand Fender's managers have been making trade-offs? Explain. Print DoneQuality, Inc. produced 1,000 units of the company's product in 2018. The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $1.20 per yard. The accounting records showed that 2,900 yards of cloth were used and the company paid $1.25 per yard. Standard time was two direct labor hours per unit at a standard rate of $10.75 per direct labor hour. Employees worked 1,400 hours and were paid $10.25 per hour. Read the requirements. i Requirements - X 1. What are the benefits of setting cost standards? 2. Calculate the direct materials cost variance and the direct materials efficiency variance as well as the direct labor cost and efficiency variances. Print DoneUse the following information to prepare a standard cost income statement for Smith Company for 2018. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) (Click the icon to view the information.) Data Table -X For Cost of Goods Sold (at standard) $ 361,000 Direct Labor Efficiency Variance $18,500 F Sales Revenue (at standard) 520,000 Variable Overhead Efficiency Variance 3,000 U Direct Materials Cost Variance 8,000 U Fixed Overhead Volume Variance 12,200 F Direct Materials Efficiency Variance 2,300 U Selling and Administrative Expenses 73,000 Direct Labor Cost Variance 43,000 U Variable Overhead Cost Variance 800 F Fixed Overhead Cost Variance 1,300 F Print DoneThe following information relates to Longman, Inc.'s overhead costs for the month: (Click the icon to view the information.) Requirements 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable. Requirement 1. Comp e, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. i - X Begin by selecting the Data Table head (FOH) variances, and then compute each variance amount. (Actual cost - Standar (Actual hours - Stand ce = Actual overhead - Bud Static budget variable overhead 7,500 3,000 Budgeted overhead - Static budget fixed overhead Static budget direct labor hours 1,500 hours Static budget number of units 7,500 units Longman allocates manufacturing overhead to production based on standard direct labor hours. Last month, Longman reported the following actual results: actual variable overhead, $10,600; actual fixed overhead, $2,840; actual production of 6,800 units at 0.25 direct labor hours per unit. The standard direct labor time is 0.2 direct labor hours per unit (1,500 static direct labor hours / 7,500 static units). Enter any number in t Print Done