Question

V ULAS DATA REVIEW VIEW . Number y Xcut Book Antiqua Ee Copy Paste Format Painter BIV Clipboard Font X for 12A A Wrap Text Mergea Center - E S.% 22Conditional Formatos Cell Formatting Table Styles Insert Delete Alignment Styles CD #1 - Calculate the flexible budget amounts and the flexible budget variances. Note whether each variance is favorable or unfavorable. Also, fill in the number of units used to calculate the flexible budget amounts. There are 16 boxes to fill in Units 10,000 9,000 Actual Results Original (Static) Budget Flexible Budget Flexable Budget Variances Favorable Of Unfavorable 12 Direct materials 66,500 58,500 14 Direct labor 80,100 67,500 Variable overhead 9,700 16 9,000 18 Fixed overhead 224,500 225,000 360,000 380,800 Totals 22 1 -- flexible budget 2 residual income + ENTER

Answer 1

Answer: Units 10,000 9,000 10,000 Direct Materials Direct Labor Variable Overhead Fixed Overhead Totals Actual Results 66,500 80,100 9,700 224,500 380,800 Original (Static) Budget 58,500 67,500 9,000 225,000 360,000 Flexible Budget 65,000 75,000 10,000 225,000 375,000 Fixeible Budget Favourable or Variances Unfavourable 1,500 Unfavourable 5,100 Unfavourable 300 Favourable 500 Favourable 5,800 Unfavourable Calculation: Budgeted Direct Materials Cost per Unit = $58,500 / 9,000 = $6.50 Budgeted Direct Labor Cost per Unit = $67,500 / 9,000 = $7.50 Budgeted Variable Overhead Cost per Unit = $9,000 / $9,000 = $1.00 Flexible Budget: Direct Materials = $6.50 * 10,000 = $65,000 Direct Labor = $7.50 * 10,000 = $75,000 Variable Overhead = $1.00 * 10,000 = $10,000