692 Required Prepare a flexible budget for Paynesville for...

692 Required Prepare a flexible budget for Paynesville for the year. (LO 16-4) 16-35. Profit Variance Analysis Refer to the information in Exercise 16-34. The following is the actual income statement (in thou sands of dollars) for the year. Sales revenue.. Less variable costs. Direct materials Direct labor Variable overhead Total variable costs Contribution margin. Less fixed costs Fixed manufacturing overhead Non-manufacturing costs Total fixed costs Operating profit $7,238 748 1,010 930 $2,688 $4,550 1,050 1,230 $2,280 $2,270 Required Prepare a profit variance analysis like the one in Exhibit 16.5. (LO 16-5) 16-36. Variable Cost Variances Refer to the information in Exercises 16-34 and 16-35. During the year, the company purchased 176,000 pounds of material and employed 40,400 hours of direct labor. Required a. Compute the direct material price and efficiency variances. b. Compute the direct labor price and efficiency variances. c. Compute the variable overhead price and efficiency variances.

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16-34. Flexible Budget Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 100,000 liters at a budgeted price of $75 per liter this year. The standard direct cost sheet for one liter of the preservative follows. (L0 16-2) Direct materials cdotscdots pounds @ $4) $8 Direct labor dots. hours @$24 12 Variable overhead is applied based on direct labor hours. The variable overhead rate is $20 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $10 per unit. All non-manufacturing costs are fixed and are budgeted at $1.2 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $270,000 unfavorable. 692 Required Prepare a flexible budget for Paynesville for the year. (LO 16-4) 16-35. Profit Variance Analysis Refer to the information in Exercise 16-34. The following is the actual income statement (in thon sands of dollars) for the year. Required Prepare a profit variance analysis like the one in Exhibit 16.5. (LO 16-5) 16-36. Variable Cost Variances Refer to the information in Exercises 16-34 and 16-35. Duxing the year, the company purchased 176,000 pounds of material and employed 40,400 hours of direct labor. Required a. Compute the direct material price and efficiency variances. b. Compute the direct labor price and efficiency variances. c. Compute the variable overhead price and efficiency variances. 692 Prepare a flexible budget for Paynesville for the year. Required 016-4 16-35.Profit Variance Analysis sands of dollars)for the year. $7,238 Sales revenue. Less variable costs. Direct materials Direct labor. Variable overhead. Total variable costs Contribution margin.. Less fixed costs... Fixed manufacturing overhead Non-manufacturing costs. Total fixed costs Operating profit 748 1,010 930 $2,688 $4,550 1,050 1,230 $2,280 $2,270 Prepare a profit variance analysis like the one in Exhibit 16.5 Required LO16-5 16-36.Variable Cost Variances 176,000 pounds of material and employed 40,400 hours of cirect labor. Required a. Compute the direct material price and efficiency variances. b. Compute the direct labor price and efficiency variances. C. Compute the variable overhead price and efficiency variances.

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