Acct344 Cost Accounting: Week 6 Problem 2 - The Sparkly Corporation has the following budget

Acct344 Cost Accounting
Week 6 Homework

Problem 2:
The Sparkly Corporation has the following budget and actual results.
Budgeted data:
Unit sales 30,000

Unit production 30,000
Fixed overhead
Supervision 54,000
Depreciation 60,000
Rent 30,000
Variable costs per unit
Direct materials 18.00

Direct labor 25.00
Supplies 0.25
Indirect labor 1.20

Electricity 0.15



Actual results:
Unit sales 33,000
Unit production 36,000

Fixed overhead
Supervision 53,550
Depreciation 60,000
Rent 30,000
Variable costs
Direct materials 642,000
Direct labor 960,000
Supplies 7,500
Indirect labor 30,000
Electricity 4,500

Required:
a. Prepare a performance report for all costs, showing static budget variances (indicate F or U).
b. Prepare a performance report for all costs, showing flexible budget variances (indicate F or U).
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