1. Using the budget data in the plant accountants report, how many motors would have to be sold for Waltham Motors Division to break even?

2. Using the budget data in the plant accountants report, compute the expected cost per unit based on the budgeted volume of 18,000 units.

a. Using this information, create an alternative budget based on the actual volume of 14,000.

b. Compute variances between this alternative budget and the actual figures given by the plant accountant.

Budget Actual Variance Units Sales 4,000 18,00014,000 $864,000 $686,000 $178,000 U Variable manufacturing costs $108,000 $85,400 $22,600 F Direct material Direct labor Indirect labor ldle time Cleanup time Miscellaneous supplies Total variable manufacturing cost 288,000 246,000 42,000 57,600 44,400 13,200 200 F 14,40014,200 10,800 10,000 4,000 800 1,200 5,200 $484,000 $404,000 $80,000 F Variable shipping costs Total variable costs $28,800 $28,000 $800 $512,800 $432,000 $80,800 Contribution margin $351,200 $254,000 $97,200 Nonvariable manufacturing costs $57,600 $58,800 $1,200 Supervision Rent Depreciation Other Total nonvariable manufacturing costs 20,00020,000 60,000 60,000 10,400 10,400 $148,000 $149,200 $1,200 Selling and administrative costs 112,000112,000 Total nonvariable and programmed costs $260,000 $261,200 $1,200 U Operating income (loss) 91,200 7,200 -98,400U