Loop 1604 Inc. has prepared a static budget at the beginning of the month. At the end of the month the following information is
1 answer:
Answer:
The variance for Sales Revenue in the flexible budget amounts to $3,960 Favorable
Explanation:
Initially, the provided budget is a static budget, which is essential for determining the flexible budget variance for Sales Revenue.
The flexible budget is created at the same quantity level as the actual.
Thus, the flexible budgeted sales for the month is 990 units at a price of $70 per unit, matching that of the static budget.
Consequently, the Variance is computed as Standard Flexible Budgeted Sales minus Actual Sales
Standard Flexible Budgeted Sales = 990 $70 = $69,300
Actual Sales Revenue = 990 $74 = $73,260
Because the actual revenue exceeds the budgeted sales, this is considered favorable.
The Flexible Budget Variance for Sales Revenue is calculated as $69,300 - $73,260 = $3,960
Since actual revenue surpasses the budgeted amount, this results in a favorable variance.
The flexible budget variance for Sales Revenue equals $3,960 Favorable
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Answer:
Part A:
Required workers=20.833≅21
Part B:
Each worker's productivity=2.0833 parts/hour
Part C:
Multifactor productivity=0.0832 Parts/$
Explanation:
Part A:
Total parts produced =100,000
Workers required= Total parts/(Parts per hour* hours per shift*Total Shifts)
Workers required=20.833≅21
Part B:
Individual worker productivity:
Part C:
Total material costs= $10*100,000=$1,000,000
Capital cost= $100,000
Total labor expenses=
Total labor expenses=$100,800
Multifactor productivity=Total Parts/(Total material costs+capital costs+Total labor expenses)