Accounting questions-P6-1 CellBase Technologies manufactures capacitors for cellular base stations and other
Question;Financial Accounting and the EntrepreneurP6-1 CellBase Technologies manufactures capacitors for cellular base stations and other communication applications. The company's December 2011 flexible budget income statement for show output levels of 7,500, 9,000, and 11,000 units.The company sold 11,000 units during December and its actual operating income was as follows:Requirements1. Prepare an income statement performance report for December.2. What was the effect on CellBase Technologies operating income of selling 2,000 units more than the static budget levels of sales?3. What is CellBase Technologies' static budget variance? Explain why the income statement performance report provides more useful information to CellBase Technologies' managers than the simple static budget variance. What insights can CellBase Technologies' managers draw from this performance report.P6-2 SmartSound manufacturers headphone cases. During September 2011, the company produced 105,000 cases and recorded the following data:Requirements1. Compute the price variance and efficiently variance for direct materials and for direct labor.2. For manufacturing overhead, compute the total variance, the flexible budget variance, and the production volume variance.3. Prepare a standard cost income statement through gross profit to report all variances to management.Sale price of the headset cases was $1.50 each.4. SmartSound's management used more-expensive workers during September. Explain the trade-off between the two direct labor variances.
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