Harrison, Inc. produces packaged peanut butter cracker snacks that are sold in vending machines and had...
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Harrison, Inc. produces packaged peanut butter cracker snacks that are sold in vending machines and had the following data available: Sales Less operating costs Sales salaries Advertising Less production expenses Direct materials Direct labor Variable overhead Rent on equipment Budget $ 63,500 $ 4,800 9,700 4,160 8,960 13,900 5,300 Actual 66,200 5,200 8,900 4,925 9,375 12,400 4,900 Income from operations $ 16,680 $ 20,500 Required: A. Complete the performance report; speculate on a possible cause for each variance (except for direct materials and direct labor) and then suggest a follow-up action for those variances. Harrison, Inc. produces packaged peanut butter cracker snacks that are sold in vending machines and had the following data available: Sales Less operating costs Sales salaries Advertising Less production expenses Direct materials Direct labor Variable overhead Rent on equipment Budget $ 63,500 $ 4,800 9,700 4,160 8,960 13,900 5,300 Actual 66,200 5,200 8,900 4,925 9,375 12,400 4,900 Income from operations $ 16,680 $ 20,500 Required: A. Complete the performance report; speculate on a possible cause for each variance (except for direct materials and direct labor) and then suggest a follow-up action for those variances.
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The performance report is as follows Category Budget Actual VarianceFU Possible Causes Follow up Act... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
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