1.Variable Cost Variance

a.Fill out an As-If Budget. Link and report on the 'Budget Decomposition Template' tab. Try to use vlookup for this calculation!

b.Calculate input quantity and input price variances for each variable cost. Link and report on the Variable Cost Variance Tab.

c.Focusing on direct materials specifically, how do you interpret the input quantity and input price variances? Do not define the formula for each variance but rather, use facts from the case to explain why each variance occurred and what it means. Be sure to also think about the effect of the two together, in other words how do you use this detail to better interpret the variable cost variance for direct materials?

Units Sold- Retail Units Sold- Internet Units Sold - Wholesale Total Revenues Retail and Catalog !ntemet Wholesale Total Revenue Variable Production Costs Direct Materials: Acrylic fabric Acrylic eyes Plastic joints Polyster filling Woven label Designer box Accessories Total Direct Materials Direct Labor Variable Overhead Total Variable Production Costs Variable Selling Total Variable Expenses Contribution Margin Fixed Goats Manufacturing Overhead Selling Expenses Administrative expenses Total Fixed Costs Operating Income Master Budget 198,000 40,000 42,000 200,000 9,702,000 1,680,000 1,344,000 12,726,000 233,338 106,400 196,000 365,400 14,000 67,200 33,600 1,015,938 3,024,000 1,046,304 5,086,242 1,218,280 6,304,522 6,421,478 661,920 4,463,000 1,124,000 6,248,920 172,558 D Sales Mix Budget Flexible Budget .4st Budget Actual 134,970 125,429 37,615 293,014 6,613,530 5,268,018 1,203,680 13,085,228 256,422 113,245 246,002 450,856 14,901 65,563 66,013 1,213,002 3,608,534 1,689,147 6,510,683 1,859,594 8,370,277 4,714,951 658,897 5,123,210 1,123,739 6,905,846 (2,190,895! A B C D E F G H I Input Quantity Input Price Variance Variance Total Direct Materials: Acrylic fabric Acrylic eyes Word Count 4 Plastic joints Polyster filling Woven label Designer box Accessories Total Direct Materials Direct Labor Variable Overhead Total Variable Production Costs Variable Selling Total Variable Expenses 4c. Focusing on direct materials specifically, how do you interpret the input quantity and input price variances? Do not define the formula for each variance but rather, use facts from the case to explain why each variance occurred and what it means. Be sure to also think about the effect of the two together, in other words how do you use this detail to better interpret the variable cost variance for direct materials? Enter your Answer here