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		Actual			Budget			Variance
Cases produced and sold		10,300			10,000			300	Favorable
Sales revenue		$2,081,900			$1,990,000			$91,900	Favorable
Less variable expenses
Direct material		593,400			576,800			16,600	Unfavorable
Direct labor		289,800			279,000			10,800	Unfavorable
Variable manufacturing overhead		231,500			229,200			2,300	Unfavorable
Variable selling expenses		113,300			111,600			1,700	Unfavorable
Variable administrative expenses		43,400			42,800			600	Unfavorable
Total variable expense		1,271,400			1,239,400			32,000	Unfavorable
Contribution margin		810,500			750,600			59,900	Favorable
Less fixed expenses
Fixed manufacturing overhead		128,000			132,300			4,300	Favorable
Fixed selling expenses		85,900			85,300			600	Unfavorable
Fixed administrative expenses		150,000			148,500			1,500	Unfavorable
Total fixed expense		363,900			366,100			(2,200)	Favorable
Operating income		$446,600			$384,500			$62,100	Favorable

		Direct materials purchased: 55,300 pounds at a total of $652,540
		Direct materials used: 51,200 pounds
		Direct labor hours worked: 27,280 at a total cost of $300,168
		Machine hours used: 52,000

		Standard Price		Standard Quantity		Standard Cost
Direct materials		$11.80 per pound		5.00 pounds		$59.00
Direct labor		$11.10 per DLH		2.60 DLH		28.86
Variable overhead		$4.50 per MH		5 MH		22.50
Fixed overhead		$2.60 per MH		5 MH		13.00
Total standard cost per case						$123.36

Direct material price variance		$0	Not Applicable
Direct material quantity variance		$3540	Favorable

Direct labor rate variance		$2640	Favorable
Direct labor efficiency variance		$5550	Unfavorable

Variable overhead spending variance		$2500	Favorable
Variable overhead efficiency variance		$2250	unfavorable

Fixed overhead spending variance

$4300

Favorable

(h)

Prepare a performance report that will assist Lexi in evaluating her efforts to control production costs. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

		Price/Rate/Spending Variance			Quantity/Efficiency Variance
Direct materials		$enter a dollar amount	select an option UnfavorableFavorableNot Applicable		$enter a dollar amount	select an option UnfavorableFavorableNot Applicable
Direct labor		enter a dollar amount	select an option Not ApplicableFavorableUnfavorable		enter a dollar amount	select an option UnfavorableNot ApplicableFavorable
Variable overhead		enter a dollar amount	select an option Not ApplicableFavorableUnfavorable		enter a dollar amount	select an option Not ApplicableFavorableUnfavorable
Fixed overhead		enter a dollar amount	select an option UnfavorableFavorableNot Applicable		enter a dollar amount	select an option UnfavorableFavorableNot Applicable
Total		$enter a total amount

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