AutoSave OFF ABESUE 2020 Summer Projects Home Insert Draw Page Layout Formulas Data Review View Tell me Le Share 0 Comments y Insert Arial 12 vi General 4 FH Delete v Paste BI U v A Conditional Format Cell Formatting as Table Styles Ideas Format v Sort & Filter Find & Select A2 fx Several years ago the Cookle Company developed a comprehensive budgeting system for profit planning and K L M N 0 P P Q 9 A D E F G H I J 1 Part 1 2 and 3 control purposes. The line supervisors have been very happy with the system and with the reports being prepared 4 on their performance, but both middle and upper management have expressed considerable dissatisfaction with the 5 information being generated by the system. The following is the overhead performance report for the Baking department. 6 7 Cookie Company 8 Overhead performance report-Baking department For the quarter ended June 30 10 11 Actual Budget Variance U or F 12 Units 34,000 35,000 1,000 U 13 14 Variable Overhead 15 Indirect materials 35000 36000 1000 F 16 Rework time 8400 8500 100 F 17 Utilities 68000 69,000 1000 F 18 Machine setup 17500 18000 500 F 19 Total variable overhead cost 128900 131500 2600 F 20 21 Fixed overhead Costs 22 Maintenance 79500 80000 500 F 23 Depreciation 10000 9800 200 U 24 Inspection 60100 60000 100 U 25 Total fixed overhead cost 149600 149800 200 F 26 Total overhead cost 278500 281300 2800 F 27 28 After receiving a copy of this overhead performance report, the supervisor of the baking department stated, "These reports 29 are super. It makes me feel really good to see how well things are going in my department. I can't understand why those people 30 upstairs complain so much." 31 The company's vice president has hired you as a consultant to develop a new overhead performance report for the quarter for the 32 Baking department. After you have developed this new performance report, explain to the supervisor of the baking department the reasons 33 for your changes and discuss the issue of controlling costs. 34 Overview Projects Part 1 Part2 Part 3 + Edit 100% AutoSave OFF ABESUE 2020 Summer Projects Q Home Insert Draw Page Layout Formulas Data Review View Tell me Le Share 0 Comments y Arial Insert 12 vi General 4 FH Delete v v Ideas Format v Sort & Filter Find & Select F N O P Q 45 Paste B I U A % 9 Conditional Format Cell Formatting as Table Styles A2 fx Several years ago the Cookie Company developed a comprehensive budgeting system for profit planning and A B E G H K L M 35 Required: Prepare a revised budget for June using the flexible performance approach. 37 You need to use cell reference to calculate the variance. You must designate a variance for each cost category and for the total cost: U or F. 38 The variable and fixed cost labeling has been set correctly, so do not change this around. 39 Please use the template I have set out below to complete this performance report. 4 2. Explain to the supervisor of the baking department the reasons for your changes and discuss the issue of controlling costs. 41 3. Identify variances in the report you prepared that should be investigated? Explain in detail why these variances should be investigated. 42 43 Solution: 44 1. Revised flexible performance report. Cookie Company 46 Overhead flexible performance report-Baking department 47 For the quarter ended June 30 48 49 Actual Budget Varlance U or F So Units 51 52 Variable Overhead 53 Indirect materials 54 Rework time SS Utilities 56 Machine setup 57 Total variable overhead cost 58 59 Fixed overhead Costs 60 Maintenance 61 Depreciation 62 Inspection 63 Total fixed overhead cost 64 Total overhead cost 65 66 2. Explain to the supervisor of the baking department the reasons for your changes and discuss the issue of controlling costs. 67 Overview Projects Part 1 Part2 Part 3 + Edit E BU 100% AutoSave OFF ABESUE 2020 Summer Projects Q Home Insert Draw Page Layout Formulas Data Review View Tell me Le Share 0 Comments y Insert Arial 12 General ~AA 4 FH Delete v Paste BIU % 9 Ideas Conditional Format Cell Formatting as Table Styles Format v Sort & Filter Find & Select A2 fx Several years ago the Cookle Company developed a comprehensive budgeting system for profit planning and L M N P P Q A B C D E H 72 3. Identify variances in the report you prepared that should be investigated? Explain in detail why these variances should be investigated. 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 Overview Projects Part 1 Part2 Part 3 + Edit E BU 100%