1 Flexible Budgets, Direct-Cost Variances, and Management Control 2 Flexible Budget 3 Sweeney Enterprises manufactures tires for the Formula I motor racing circuit. The company's budgeted and actual 4 amounts are as follows: 5 6 Budgeted for August 2017 7 Units to manufacture and sell 3,550 8 Variable cost per tire $72 9 Total fixed costs $54,500 10 Budgeted selling price per tire $115 11 12 Actual Results for August 2017 13 Units manufactured and sold 3,500 14 Selling price per tire $116 15 Total variable costs $280,000 16 Total fixed costs $51,000 17 18 Use the blue shaded areas for inputs. 19 Always use cell references and formulas where appropriate to receive full credit. 20 21 Requirement 22 Prepare a performance report that uses a flexible budget and a static budget. 23 a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted. b. Use the ABS function when calculating variances, and use the drop-down selections 24 for F (favorable) or U (unfavorable) when describing the variances. For variances with a zero amount, make sure to enter the result of "=0" in the 25 appropriate cell and leave the drop-down to identify the variance as either For U C. a. Requirement Prepare a performance report that uses a flexible budget and a static budget. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted. b. Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or U (unfavorable) when describing the variances. For variances with a zero amount, make sure to enter the result of "=0" in the appropriate cell and leave the drop-down to identify the variance as either For U 1 C. . Prepare a performance report that uses a flexible budget and a static budget. a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted. b. Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or U (unfavorable) when describing the variances. c. For variances with a zero amount, make sure to enter the result of "=0" in the appropriate cell and leave the drop-down to identify the variance as either F or U blank. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) . Flexible-Budget Variance Flexible Budget Sales-Volume Variances Actual Results Static Budget *Variances should be presented as positive numbers using the ABS function. Units sold Revenues Variable costs Contribution margin Fixed costs Operating income