B C D E F G H J K L N 0 P Q Flexible Budgets, Direct-Cost Variances, and Management Control 2 Flexible Budget 3 Sweeney Enterprises manufactures tires for the Formulai motor racing circuit. The company's budgeted and actual 4 amounts are as follows: 5 6 Budgeted for August 2017 Units to manufacture and sell 3,600 8 Variable cost per tire $71 9 Total fixed costs $55,000 10 Budgeted selling price per tire $114 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. 26 27 Prepare a performance report that uses a flexible budget and a static budget. 28 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 29 (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 30 drop-down to identify the variance as either For U blank. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the 31 Instruction tab you will be marked wrong.) 32 Flexible-Budget Variance Flexible Budget Sales-Volume Variances Actual Results Static Budget *Variances should be presented as positive numbers using the ABS function. 33 34 Units sold 35 Revenues 36 Variable costs 37 Contribution margin 38 Fixed costs 39 Operating income 40 41