M4 Problems

Please complete the following exercises and/or problems:

E23-16

E23-19

E23-20

CP23-36

Prepare your answers in an Excel workbook, using one worksheet per exercise or problem.

E23-16 Preparing a flexible budget performance report

Stenback Pro Company managers received the following incomplete performance report:

Complete the performance report. Identify the employee group that may deserve praise and the group that may be subject to criticism. Give your reasoning.

E23-19 Calculating materials and labor variances

Great Fender, which uses a standard cost accounting system, manufactured 20,000 boat 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 $13.50 per hour. The direct materials standard was 7 square feet of vinyl per fender, at a standard cost of $1.10 per square foot. The labor standard was 0.025 direct labor hour per fender, at a standard cost of $12.50 per hour.

Compute the cost and efficiency variances for direct materials and direct labor.

E23-20 Computing overhead variances

Review the data from Great Fender given in Exercise E23-19. Consider the following additional information

 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.

2. Explain why the variances are favorable or unfavorable

P23-36 Calculating materials and labor variances and preparing journal entries

This continues the Davis Consulting, Inc. situation from Problem P22-56 of Chapter 22. Assume Davus gas created a standard cost card for each job, Standard direct materials include14 software packages a cost of $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 included 90 software packages at a total cost of $81,450. Actual direct labor 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.