Solved by verified expert :Please complete the following exercises and/or problems from the textbook:E23-16E23-19E23-20CP23-36E23-16 Preparing a flexible budget performance reportStenback Pro Company managers received the following incomplete performancereport:STENBACK PRO COMPANYFlexible Budget Performance ReportFor the Year Ended July 31, 2014UnitsFlexibleBudget FlexibleActual Results Variance BudgetSalesVolume StaticVariance BudgetUnitsSales RevenueVariable ExpensesContributionMarginFixed Expenses39,000 (a)218,000 (b)84,000 (c)134,000 (d)108,000 ( e)39,000 3,000 F (g)218,000 27,000 F (h)81,000 10,000 U (i)137,000 17,000 F 0 (j)101,000(k)Operating Income26,000 (f)36,000 17,000 F (l)Complete the performance report. Identify the employee group that may deservepraise and the group that may be subject to criticism. Give your reasoning.Sales RevenueVariable Costs:Manufacturing:Direct MaterialsDirect LaborVariable OverheadVariable OverheadSelling & Administrative:Supplies:Total Variable CostsContribution MarginFixed Costs:ManufacturingSelling & Administrative:Total Fixed CostsOperating IncomeStenback Pro CompanyFlexible Budget Performance ReportFor the Year ended July 31, 201412345FlexibleSalesBudgets Amounts ActualBudget Flexible Volume Staticper UnitResults Variance Budget Variance Budget39,000039,000 3,000F36,000$5.59218,0000218,000 27,000 F191,00084,000 3,000 U134,000 3,000 U81,000 10,000 U137,000 17,000 F71,000120,000108,000 7,000 U26,000 10000 U101,000036,000 17,000 F101,00019,000The Sales Revenue deserves praise for a favorable sales volume variance. The total variable costs wereunfavorable so the manager may need to take a look at the quality of products being ordered.2. Calculating materials and labor variancesGreat Fender, which uses a standard cost accounting system, manufactured 20,000boat fenders during 2014, using 144,000 square feet of extruded vinyl purchased at$1.05 per square foot. Production required 420 direct labor hours that cost $13.50per hour. The direct materials standard was 7 square feet of vinyl per fender, at astandard cost of $1.10 per square foot. The labor standard was 0.025 direct laborhour per fender, at a standard cost of $12.50 per hour.Compute the cost and efficiency variances for direct materials and direct labor.Does the pattern of variances suggest Great Fender’s managers have been makingtrade-offs? Explain. DL Eff. Var. $1,000 F3.Computing overhead variancesReview the data from Great Fender given in Exercise E23-19. Consider thefollowing additional information:Static budget variable overhead $ 5,500Static budget fixed overhead $ 22,000Static budget direct labor hours 550 hoursStatic budget number of units 22,000 unitsGreat Fender allocates manufacturing overhead to production based on standarddirect labor hours. Great Fender reported the following actual results for 2014:actual variable overhead, $4,950; actual fixed overhead, $23,000.Requirements1. Compute the overhead variances for the year: variable overhead cost variance,variable overhead efficiency variance, fixed overhead cost variance, and fixedoverhead volume variance.2. Explain why the variances are favorable or unfavorable.1. FOH Vol. Var. $2,000 U4. Calculating materials and labor variances and preparing journal entriesThis continues the Davis Consulting, Inc. situation from Problem P22-56 ofChapter 22. Assume Davis has created a standard cost card for each job. Standarddirect materials include 14 software packages at a cost of $900 per package.Standard direct labor cost per job include 90 hours at $120 per hour. Davis planson completing 12 jobs during March 2013.Actual direct materials costs for March included 90 software packages at a total costof $81,450. Actual direct labor costs included 100 hours per job at an average rateActual direct labor included 100 hours per job at an average rate of 125 per hour. Davis completed all 12 jobs in March.Requirements1. Calculate direct materials cost and efficiency variances.2. Calculate direct labor cost and efficiency variances.3. Prepare journal entries to record the use of both materials and labor for Marchfor the company.E23-20 & CP23-36:1. Consider the following additional information: Static budget variable overhead $ 5,500 Static budget fixed overhead $ 22,000 Static budget direct labor hours 550 hours Static budget number of units 22,000 units Great Fender allocates manufacturing overhead to production based on standard direct labor hours. Great Fender reported the following actual results for 2014: actual variable overhead, $4,950; actual fixed overhead, $23,000. Requirements 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. FOH Vol. Var. $2,000 U ________________________________________________________________________________________2. Assume Davis has created a standard cost card for each job. Standard direct materials include 14 software packages at a cost os $900 per package.Standard direct labor costs per job include 90 hours at $120 per hour. Davis plans on completing 12 jobs during March 2013.Actual direct materials costs for March include 90 software packages at a total cost of $81,450. Actual direct costs included 100 hours per job at an average rate of $125 per hour. Davis completed all 12 jobs in March.Requirements 1. Calculate direct materials cost and efficiency variances. 2. Calculate direct labor cost and efficiency variances. 3. Prepare journal entries to record the use of both materials and labor for March for the company.
