Top managers of Yearon Ltd. predicted the following year's sales of 149,000 units of its product...

 

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Top managers of Yearon Ltd. predicted the following year's sales of 149,000 units of its product at a unit price of $9.40. Actual sales for the year were 141,500 units at $11.20 each. Variable expenses were budgeted al 52.30 per unit, and actual variable expenses were $3.15 per unit. Actual fixed expenses of $450,000 exceeded budgeted foxed expenses by $27,500. Prepare Yearon Ltd's income statement performance report. What variance contributed most to the year's favourable results? What caused this variance? Prepare Yearon Ltd's income statement performance report (For accounts with a zero balance, make sure to enter "0" in the appropriate column. Label each variance as favourable (F) or unfavourable (U). If the variance is zero, do not select a label.) Yearon Ltd. Income Statement Performance Report For the Year Flexible Budget for Actual Number of Actual Results at Actual Prices Flexible Budget Variance Sales Volume Variance Static (Master) Budget Output Units Output units Sales revenue Variable expenses Fixed expenses Total expenses Operating income Greg Garden Supplies makes ground covers to prevent weed growth. During May, the company produced and sold 44,200 rolls and recorded the following cost data E (Click the icon to view the cost data.) Requirements Requirement 1. Compute the price and efficiency variances for direct materials and direct labour. Begin by determining the formula for the price variance, then compute the price variances for direct materials (DM) and direct labour (DL) (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).) ) x| = Price variance Grand Guard, which uses a standard cost accounting system, manufactured 230,000 boat fenders during the year, using 1,940,000 m of extruded vinyl purchased at 51 35 per metre Production required 4,100 direct labour hours that cost $15 50 per hour. The materias standard was 8 m of vinyl per fender at a standard cost of 51.50 per metre. The labour standard was 0.024A direct labour hour per lender at a standard cost of S14.00 per hour Compute the price and efficiency variances for direct materials and direct labour. Does the pattern of variances suggest Grand Guard's managers have been making trade-offs? Explain Begin by determining the fomula for the price variance, then compute the price variances for direct materials (DM) and direct labour (DL) (Enter the results as positive numbers. Label each variance as favourable (F) or. unfavourable (U).) Actual price per input unit Standard price per input unit )x Actual quantity of input = Price variance DM ( )x DL Top managers of Yearon Ltd. predicted the following year's sales of 149,000 units of its product at a unit price of $9.40. Actual sales for the year were 141,500 units at $11.20 each. Variable expenses were budgeted al 52.30 per unit, and actual variable expenses were $3.15 per unit. Actual fixed expenses of $450,000 exceeded budgeted foxed expenses by $27,500. Prepare Yearon Ltd's income statement performance report. What variance contributed most to the year's favourable results? What caused this variance? Prepare Yearon Ltd's income statement performance report (For accounts with a zero balance, make sure to enter "0" in the appropriate column. Label each variance as favourable (F) or unfavourable (U). If the variance is zero, do not select a label.) Yearon Ltd. Income Statement Performance Report For the Year Flexible Budget for Actual Number of Actual Results at Actual Prices Flexible Budget Variance Sales Volume Variance Static (Master) Budget Output Units Output units Sales revenue Variable expenses Fixed expenses Total expenses Operating income Greg Garden Supplies makes ground covers to prevent weed growth. During May, the company produced and sold 44,200 rolls and recorded the following cost data E (Click the icon to view the cost data.) Requirements Requirement 1. Compute the price and efficiency variances for direct materials and direct labour. Begin by determining the formula for the price variance, then compute the price variances for direct materials (DM) and direct labour (DL) (Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U).) ) x| = Price variance Grand Guard, which uses a standard cost accounting system, manufactured 230,000 boat fenders during the year, using 1,940,000 m of extruded vinyl purchased at 51 35 per metre Production required 4,100 direct labour hours that cost $15 50 per hour. The materias standard was 8 m of vinyl per fender at a standard cost of 51.50 per metre. The labour standard was 0.024A direct labour hour per lender at a standard cost of S14.00 per hour Compute the price and efficiency variances for direct materials and direct labour. Does the pattern of variances suggest Grand Guard's managers have been making trade-offs? Explain Begin by determining the fomula for the price variance, then compute the price variances for direct materials (DM) and direct labour (DL) (Enter the results as positive numbers. Label each variance as favourable (F) or. unfavourable (U).) Actual price per input unit Standard price per input unit )x Actual quantity of input = Price variance DM ( )x DL

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Answer Formulas Computation of Price and quantity varia... View the full answer