1. Compute The Variance in the Budget vs Actual Report Below. Indicate in Column G whether...

1. Compute The Variance in the Budget vs Actual Report Below. Indicate in Column G whether the variance is Favorable (F) or Unfavorable (U)

2. Prepare a Flexible Budget to match the Actual Sales, Compute the Variance and again indicate whether Favorable or Unfavorable

3. Comment on the difference between the reports. Is the units produced variance important? What is the overall difference?, etc.

Wireless Buds, LLC
Performance Report - Budget vs Actual
Quarter ended March 31, 2018

	Static Budget	Actual	Variance	Favorable/ Unvavorable
Units Produced	25,000	22,800
Variable Costs:
Direct Materials	75,000	66,120
Direct Labor	62,500	62,700
Indirect Materials	50,000	44,460
Indirect Labor	37,500	39,900
Utilities	25,000	25,080
Total Variable Costs	250,000	238,260
Fixed Costs:
Supervisory Salaries	90,000	90,500
Depreciation	25,000	24,800
Property Insurance	6,000	5,500
Real Estate Taxes	5,000	5,600
Total Fixed Costs	126,000	126,400
Total Overhead	$ 376,000	$ 364,660

Wireless Buds, LLC
Performance Report - Budget vs Actual
Quarter ended March 31, 2018

	Flexible Budget	Actual	Variance	Favorable/ Unvavorable
Units Produced		22,800
Variable Costs:
Direct Materials		66,120
Direct Labor		62,700
Indirect Materials		44,460
Indirect Labor		39,900
Utilities		25,080
Total Variable Costs		238,260
Fixed Costs:
Supervisory Salaries		90,500
Depreciation		24,800
Property Insurance		5,500
Real Estate Taxes		5,600
Total Fixed Costs		126,400
Total Overhead		$ 364,660

Expert Solution

ekkarill92 answered 1 year ago

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