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