Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 13 Aug 2017 My Price 11.00

Sonnet, Inc.

Sonnet, Inc., has the following budgeted standards for the month of March 2011:
Average selling price per diskette $ 6.00
Total direct material cost per diskette $ 1.50
Direct manufacturing labor
Direct manufacturing labor cost per hour $ 12.00
Average labor productivity rate (diskettes per hour) 300
Direct marketing cost per unit $ 0.30
Fixed overhead $ 800,000
Sales of 1,500,000 units are budgeted for March. The expected total market for this product was 7,500,000 diskettes. Actual March results are as follows:
Unit sales and production totaled 95% of plan.
Actual average selling price increased to $6.10.
Productivity dropped to 250 diskettes per hour.
Actual direct manufacturing labor cost is $12.20 per hour.
Actual total direct material cost per unit increased to $1.60.
Actual direct marketing costs were $0.25 per unit.
Fixed overhead costs were $10,000 above plan.
Actual market size was 8,906,250 diskettes.
Required
Calculate the following:
1. Static-budget and actual operating income
2. Static-budget variance for operating income
3. Flexible-budget operating income
4. Flexible-budget variance for operating income
5. Sales-volume variance for operating income
6. Market share and market size variances
7. Price and efficiency variances for direct manufacturing labor
8. Flexible-budget variance for direct manufacturing labor

Answers

Maurice Tutor
(5)
Status NEW Posted 13 Aug 2017 01:08 PM My Price 11.00

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