Answer Happy

PE 23-6A Income statement with variances OBJ.5 Prepare an income statement through gross profit for Venneman Company for the month ended March 31 using the variance data in Practice Exercises 23-1A through 23-4A. Assume that Venneman sold 14,000 units at $165 per unit.
PE 23-1A: Price Variance = (standard price - actual price)* actual quantity Price Variance = (5.1 -5.4)*48,000 = $14,400 Quantity Variance = (Standard quantity - Actual quantity)*Standard Price Quantity Varaince = (49,000-48,000) *5.1 = $5,100 Direct Materials Variance = (standard quantity*standard price)-(Actual quantity* actual price) Direct materials variance = (49,000*5.1) * (48,000*5.4) = 9,300 PE 23-2A: Direct Labor Rate Variance = 8,700 Favorable Direct Labor Efficiency Variance = 24,000 Unfavorable Total Labor Variance = 15,300 Unfavorable PE 23-3A: Variable overhead controllable variance = standard variable overhead - actual variable overhead Variable overhead variance = (14,000*4*.80)-46,100 =44,800-46,100 Variable overhead variance = 1,300 unfavorable PE 23-4A: Factory overhead volume variance Factory overhead volume variance = (actual hours - budgeted hours)*standard fixed overhead cost Factory overhead volume variance = (55,000-(14,000*4)]*.95 = (55,000-56,000)*.95 Factory overhead variance = -950 favorable