Please complete the following: Fine Fudge Factory Manufactures fudge using .80 p

Question

Please complete the following:

Fine Fudge Factory Manufactures fudge using .80 pounds of raw material and a standard labor rate of $15 per hour to produce fudge. The company sells it's fudge by the pound and used 20,000 pounds of fudge in their planning budget. During October, the company sold 21,000 pounds of fudge. Below is the companies planning budget and their actual results for October. Remember to show your work for credit.

A) Caculate Fine Fudge Factory's sale price per pound of fudge. Assume the company did not change its sales price from budget.

B) Using flexible budgeting, were sales favorable or unfavorable with respect to budget? by how much was it?

C)Using the standard .80 of direct material indegrients epr pound of fudge, caculate the standard price per pound of the indegrents. Round your answer to the neareest penny.

D) Fine fudge factory bought and used 17,200 pounds of direct material indegrents during october. What average price per pound did they pay? Round your answers to the nearest penny.

E) Caculate the total material price variance for October. Is the variance favorable or unfavorable? - note this should not be a per unit amount.

F)Fine Fudge factory's standard labor rate is $15.If employees worked 2,840 hours during october, caculate the direct labor effeciency variance. Indicitate if it is favorable or unfavorable.

G) What is the fixed overhead budget variance? Is it favoriable or unfavorable?

crodit Planning Actual $ 208,000 S 200,000 56,000 18,000 136.000 Sales COGS 60,500 Direct Materials Diroct labor Variable Overhead -40,00044,500 18,800 21.700 145.500 S 62,500 Total COGS Gross Margin Dice r nound of fudge. Assume the con

Explanation / Answer

Solution A:

Sale price per pound of fudge = $200,000 / 20000 = $10 per pound

Solution B:

Actual sales = $208,000

Budgeted sales = $200,000

Total sales variance = Actual sales - Budgeted sales = $208,000 - $200,000 = $8,000 favorable

Solution C:

Total standard material required for 20000 pound = 20000 * 0.8 = 16000 pound

Total budgeted cost of material = $56,000

standard price pound of indegrents = $56,000 / 16000 = $3.50 per pound

Solution D:

Acutal price per pound of direct material indegrents = Total actual cost / Qty of direct material used

= $60,500 / 17200 = $3.52 per pound

Solution E:

material price variance = (SP - AP) * AQ = ($3.50 - $3.51744) * 17200 = $300 U

Note: i have answered more than required parts as per chegg policy, kindly post separate question for answer of remaining parts.

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