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Moonbeam manufactures wooden playsets. Information related to the sale and production during the month of March is as follows:

Additional direct material information: o Direct materials are budgeted at 200 feet per playset and $2.00 per foot o Actual direct materials cost is $2.10 per foot Additional direct labor information: o Direct labor is budgeted at 16 hour per playset and a $20 hourly rate o Actual labor hours incurred totaled 13,000 hours 1. In general, how is a flexible budget determined? 2. Determine the sales-volume variance. What does this variance mean? 3. Determine the direct labor price and efficiency variances. 4. Determine the fixed overhead spending variance. 5. What is a possible explanation for the direct labor efficiency variance?

Moonbeam manufactures wooden playsets. Information related to the sale and production during the month of March is as follows: Flesbe Audprl Saata RU 150 50 this $82.50 R 900 rubies 299 30 AU Dindre B4000 7300 000 Director 2000 Ven verhead 17.00 69.25 660.000 Total 171250 20000 36.000 Contribution 1000 11.00 Freda $$5.250 $27.00 SRO Operating hone Additional direct material information Direct materials are budgeted at 200 feet per playset and $2.00 per foot Actual direct materials cost is $2.10 per foot - Additional direct labor information: o Direct labor is budgeted at 16 hour per playset and a $20 hourly rate o Actual labor hours incurred totaled 13,000 hours 1. In general, how is a flexible budget determined? 2. Determine the sales-volume variance. What does this variance mean? 3. Determine the direct labor price and efficiency variances. 4. Determine the fixed overhead spending variance. 5. What is a possible explanation for the direct labor efficiency variance? Flexible Static Budget Actual Budget 750 750 800 Units sold $862,500 $900,000 $960,000 Revenue Variable costs: 320,000 299.250 300,000 Direct material 273,000 240,000 256,000 Direct labar 128,000 Variable manuf overhead 117,000 120,000 704,000 689250 660.000 Total 173.250 240.000 256,000 Contribution margin 118,000 143,000 143,000 Fixed costs $55,250 $97,000 $113,000 Operating income

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