Determine the output activity variance for sales and label

Question

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.

10,000	pools	budgeted sales
	15,000	pools	actual sales
	10,000	pools	budgeted pools to be produced
	15,000	pools	actual pools produced
	32	$ / pool	budgeted sales price
	30	$ / pool	actual sales price
	49,500	pounds	actual purchased and used materials
	96,000	$	actual cost for direct materials
	11,250	hours	actual direct labor used in production
	82,500	$	actual direct labor expense
	19,500	$	actual variable manufacturing overhead
	6,750	machine hours	actual machine hours used in production

Standard as set by management
	Direct Materials			Direct Labor			Variable MOH
Input Quantity	3.00	pounds / pool		0.80	labor hours / pool		0.40	MACHINE hours / pool
$ / Input	2.00	$ / pound		6.00	$ / labor hour		3.00	$ / MACHINE hour

	planning budget						actual	total variance
sales
variable cogs
total variable COGS
contribution margin