Question

Tipton Company's production performance report for April includes the information shown below

Tipton Company's production performance report for April includes the information shown below. (Click the icon to view the production performance report.) Requirement Prepare a flexible budget for the items shown and compute the flexible budget cost variances and planning cost variances for each item. Indicate whether the variances are favorable or unfavorable for each item. - X Begin with the master budget, then complete the flexible budget columns and the actual results columns. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label. Round interim calculations to the nearest cent.) Master Planning Flexible Flexible Budget Data Table Budget Variance Budget Variance Actual Units 81000 - 70000 Direct materials 486000 NN 413000 ACTUAL MASTER BUDGET Direct labor 222750 196000 Volume 70,000 81,000 Fixed manufacturing support 450000 IN _432000 Manufacturing costs: Total 1158750 1041000 Direct materials 413,000 $ 486,000 Direct labor 196,000 222,750 Fixed manufacturing support 432,000 450,000 Total $ 1,041,000 $ 1,158,750 Choose from any list or enter any number in the input fields and then continue to the next question. Print Done

Answer 1

PLANNING VARIANCE FLEXIBLE BUDGET VARIANCE PARTICULARS MASTER BUDGET FLEXIBLE BUDGET ACTUAL AMOUNT FAVOURABLE/ ADVERSE AMOUNT FAVOURABLE/ ADVERSE F UNITS DIRECT MATERIAL DIRECT LABOUR FIXED MANUFACTURING SUPPORT TOTAL 81,000 4,86,000 2,22,750 4,50,000 11,58,750 66,000 30,250 F F 70,000 4,20,000 1,92,500 4,50,000 10,62,500 7,000 -3,500A 18,000 21,500 70,000 4,13,000 1,96,000 4,32,000 10,41,000 96,250 NOTE 1) FLEXIBLE BUDGET IS PREPARED BY USING FORMULA (MASTER BUDGET/MASTER BUDGET UNITS*ACTUAL UNITS) 2) PLANNING VARIANCE IS CALCULATED BY MASTER BUDGET LESS FEXIBLE BUDGET 2) FLEXIBLE BUDGET VARIANCE IS CALCULATED BY FLEXIBLE BUDGET LESS ACTUAL