1. A brief overview of how the flexible budget was prepared and its purpose in variance analysis.

2. Tell the board of directors about the following variances. This explanation should include whether the variance is favorable or unfavorable, the amount of the variance, potential causes of these variances in relation to your cost object and the next steps you will take as manager to mitigate effects of unfavorable variances or optimize upon favorable variances. Each variance must be addressed.

a. Sales Volume Variance

b. Selling Price Variance

c. Direct Material Price & Quantity Variances

d. Direct Labor Rate & Wage Variances

e. Variable Indirect Price & Efficiency Variances

f. Fixed Indirect Price & Volume Variances

3. Create a PowerPoint presentation utilizing the following best practices:

a. Keep slides to five bullet points with a maximum of seven words per bullet point or to seven bullet points with a maximum of five words per bullet point.

b. Choose a font that is easy to read. c. Incorporate tables, charts, or pictures to help make your points. d. Try not to use more than five colors unless they are being used to show categories or sequences. e. Simplify content when possible by using bullet points instead of sentences.