Sturdy Manufacturing Co. Budget vs. Plan Performance Report for Year 1 Sturdy Manufacturing Co. Budget vs....

 

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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.

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