,solve the following problem below

i Help Me Solve This i Question He The Sullivan Corporation manufactures lamps. It has set up the Assume that there was no beginning inventory of either direct following standards per finished unit for direct materials and direct materials or finished units. During the month, materials purchase manufacturing labor: amounted to 100,300 lb., at a total cost of $541,620. Input price (Click the icon to view the standards.) variances are isolated upon purchase. Input-efficiency variances The number of finished units budgeted for January 2017 was are isolated at the time of usage. 10,030; 9,900 units were actually produced. Read the requirements. EE(Click the icon to view actual data.) A variance is the difference between actual results and expected (budgeted) performance. Variance analysis contributes in many ways to making the five-step decision-making process more effective. It allows managers to evaluate performance and learn by providing a framework for correctly assessing current performance. In turn, managers take corrective actions to ensure that decisions are implemented correctly and that previously budgeted results are in fact attained. Variances also enable managers to generate more informed predictions about the future, and thereby improve the quality of the five-step decision-making process. Requirement 1. Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor. Let's begin by calculating the following costs: actual input at budgeted price. The "actual input at budgeted price" cost will help in calculating the price and efficiency variances. The difference between the actual cost and this cost is the price variance and the difference between the flexible budget cost and this cost is the efficiency variance. (Round your answers to the nearest whole dollar.) Actual input Budgeted price Cost Direct materials (purchases) 100,300 5.30 531.590 Direct materials (usage) 98.500 5.30 522,050 This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. clic All parts showing Closeolve Standards oratio inventory Is per Direct materials: 10 lbs. at $5.30 per lb. $ 53.00 month, m or: ist of $541 to vie Direct manufacturing labor: 0.5 hour at $31 per hour 15.50 Input-effi ished s were Print Done to vie lifference be Actual Data - X analysis contribute ep decision- ance and learn by ectly assess ensure that decisio ectly and tha e managers to ger ns about the Actual results in January 2017 were: g process. Compute the Direct materials: 98,500 lbs. used ect manufacturing culating the Direct manufacturing labor: 4,700 hours $ 153,925 geted price" cost w ce and efficie the price variance n the flexible ers to the nearest Print DoneThe standards have already been given to us: direct materials of 10 pounds for every lamp and direct manufacturing labor of 0.5 hour is used to produce each lamp. Using the standards, let's determine how many pounds/hours of input should have been used to produce the 9,900 lamps (output) the company actually made. Standard X Actual lamps produced = Budgeted input for actual output Direct materials 10 X 9.900 99.000 Direct manufacturing labor 0.5 9,900 4.950 hours Now calculate the costs for the flexible budget. Budgeted input for actual output x Budgeted price Flexible budget cost Direct materials 99,000 X 5 5.30 524,700 Direct manufacturing labor 4,950 X 31.00 153.450 Jaina tha nice and alliclancy variances for direct materials and direct manufacturing labor. review the following information.Price Efficiency variances variances Direct materials $ 10,030 U $ 2,650 F Direct manufacturing labor $ 8,225 U $ 7,750 F Requirement 2. Prepare journal entries to record the variances in requirement 1. Journal entries under standard costing focus on direct materials and direct manufacturing labor. The standard costs also si costing-as each unit is manufactured, costs are assigned to it using the standard cost of direct materials and the standard manufacturing labor. From a control perspective, all variances are isolated at the earliest possible time so that corrective ac taken immediately rather than waiting until the materials are used in production. When preparing variance entries, unfavorable variances are always debits (they decrease operating income), and favorableJournal Entry Date Accounts Dobit Credit Work-in-Process Control 153,450 Direct Manufacturing Labor Price Variance 8,225 Direct Manufacturing Labor Efficiency Variance 7,750 Wages Payable Control 153,925 Requirement 3. Comment on the January 2017 price and efficiency variances of Sullivan Corporation. A key point is that all of these efficiency variances are likely to be insignificant. They are so small as to be nearly meaningless. Fluctuations about standards are bound to occur in a random fashion. Practically, from a control viewpoint, a standard is a band or rang of acceptable performance rather than a single-figure measure. Requirement 4. Why might Sullivan calculate direct materials price variances and direct materials efficiency variances with reference to different points in time? This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers, All parts showing Close