1.The master budget at Western Company last period called for sales of 235,000 units at $10.00 each. The costs were estimated to be $3.00 variable per unit and $220,000 fixed. During the period, actual production and actual sales were 240,000 units. The selling price was $10.10 per unit. Variable costs were $3.75 per unit. Actual fixed costs were $220,000.

Required:

Prepare a flexible budget for Western.

WESTERN COMPANY

Flexible Budget

2.The master budget at Western Company last period called for sales of 227,000 units at $11.00 each. The costs were estimated to be $3.95 variable per unit and $227,000 fixed. During the period, actual production and actual sales were 232,000 units. The selling price was $11.10 per unit. Variable costs were $6.50 per unit. Actual fixed costs were $227,000.

Required:

Prepare a profit variance analysis.(Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

3 . Odessa, Inc., reports the following information concerning operations for the most recent month:

Actual (based on actual of 675 units)Master Budget (based on budgeted 750 units)Sales revenue$127,330$135,000LessManufacturing costsDirect labor16,47617,250Materials16,40518,375Variable overhead10,23012,000Marketing6,5227,200Administrative6,0006,000Total variable costs$55,633$60,825Contribution margin$71,697$74,175Fixed costsManufacturing4,4554,600Marketing10,1829,800Administrative8,9609,000Total fixed costs$23,597$23,400Operating profits$48,100$50,775

There are no inventories.

Required:

Prepare a flexible budget for Odessa, Inc.(Do not round intermediate calculations.)

4 . Information about direct materials cost follows for a local company:

Standard price per materials gram$18Actual quantity used2,770gramsStandard quantity allowed for production2,900gramsPrice variance$13,850F

Required:

What was the actual purchase price per gram?