Expert Answer :Cost Accounting

Solved by verified expert :Peaceful Corporation manufactures figurines based on the following information.Standard costs$20Materials (4 ounces at $5)$8Direct labor (1 hour per unit)$4Variable overhead (based on direct labor hours)Fixed overhead budget$19,000Actual results and costsMaterials purchasedUnits9,000Cost$39,600Materials used in productionFinished product units2,000Raw material (ounces)8,200Direct labor hours2,000Direct labor cost$20,000Variable overhead costs$5,980Fixed overhead costs$19,500Required:Prepare a performance report for Peaceful using the following headings.Actual Production CostsFlexible Budget CostsFlexible Budget VariancesCompute the following variances (show calculations).Materials usage varianceLabor rate varianceLabor efficiency varianceVariable overhead spending varianceVariable overhead efficiency varianceFixed overhead budget varianceGive one possible explanation for each of the six variances computed in part b.Problem 2:The following is the current variable costing income statement for Dolly Corporation.Sales (5,000 units)$100,000Variable expenses Cost of goods sold$35,000Selling (10% of sales)$10,000$45,000Contribution margin$55,000Fixed expensesManufacturing overhead$24,000Administrative$12,500$36,500Operating income$18,500Below is the following information on operations for Dolly Corporation.Beginning inventory (units)0Units produced (units)6,000Manufacturing costsDirect labor (per unit)$5.00Direct materials (per unit)$2.30Variable overhead (per unit)$2.40Required:Prepare an absorption costing income statement.Problem 3:The following information was compiled for two models of cell phones.3G model4G modelAverageBudgeted Contribution Margin$80.00$120.00$95.25Budgeted Sales in Units28,00018,000Actual Sales in Units28,60016,500Required:Calculate the sales mix variance. (Show your calculations.)