1. Determine the STANDARD cost per pool for:
Direct Materials
Direct Labor
Variable Manufacturing Overhead
2. Determine the ACTUAL cost per pool for:
Direct Materials
Direct Labor
Variable Manufacturing Overhead
3. Determine the ACTUAL quantity of inputs per pool for:
Direct Materials
Direct Labor
Variable Manufacturing Overhead
3. Complete the highlighted portions of the table below.
Label the Total Contribution Margin Variance as favorable or unfavorable on the table.
Calculate the Total Variacne Columns both ways.
4. Determine the Output Activity Variance for SALES and label it as favorable or unfavorable.
5. Determine the Revenue/Spending Variance for Sales and label it as favorable or unfavorable.
6. Determine the contribution margin ratio for the PLANNING BUDGET.
7. Determine the contribution margin ratio for the ACTUAL.
Slim Shadey McShay makes pools. The primary direct material is plastic.
Data from the financial planning and analysis team are provided below.
This is the first month of production. The business just opened.
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10,000
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pools
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budgeted sales
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15,000
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pools
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actual sales
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10,000
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pools
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budgeted pools to be produced
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15,000
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pools
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actual pools produced
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32
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$ / pool
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budgeted sales price
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30
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$ / pool
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actual sales price
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49,500
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pounds
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actual purchased and used materials
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96,000
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$
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actual cost for direct materials
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11,250
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hours
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actual direct labor used in production
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82,500
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$
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actual direct labor expense
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19,500
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$
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actual variable manufacturing overhead
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6,750
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machine hours
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actual machine hours used in production
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Standard as set by management
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Direct Materials
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Direct Labor
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Variable MOH
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Input Quantity
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3.00
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pounds / pool
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0.80
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labor hours / pool
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0.40
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MACHINE hours / pool
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$ / Input
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2.00
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$ / pound
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6.00
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$ / labor hour
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3.00
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$ / MACHINE hour
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planning budget |
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actual |
total variance |
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| sales |
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| variable cogs |
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| total variable COGS |
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| contribution margin |
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