BUDGETED INFORMATION: Bicycle Tires Inc (BTI) manufactures bicycle tires out of rubber. It plans to make/sell 75,000 tires in June at $35/each. Use the following information to create the series of budgets that Bicycle Tires Inc. will need for the month, and do a variance analysis to understand the reasons for differences between budget and actual performance. Direct Material Direct Labor BTI also has Rubber Labor Amount Needed for One Tire ACTUAL INFORMATION: 1.5 lbs/unit 2 hours/unit Manufacturing supervisor's salary of $100,000/month Manufacturing maintenance $120,000/month Manufacturing utilities $50,000/month Marketing Costs $25,000/month Other Selling Costs $12,000/month Cost for BTI to Buy $3/lb $12/hour It turns out, BTI sold 100,000 units for $30/each. Actual rubber needed per tire was 1.8 lbs/tire, and BTI had to purchase the rubber for $2.75/lb. BTI needed to pay $11/hour for direct labor hours, and each tire required 1.5 hours/unit in labor. All other costs were as budgeted.

BUDGETED INFORMATION: Bicycle Tires Inc (BTI) manufactures bicycle tires out of rubber. It plans to make/sell 75,000 tires in June at $35/ each. Use the following information to create the series of budgets that Bicycle Tires Inc. will need for the month, and do a variance analysis to understand the reasons for differences between budget and actual performance. BTI also has - Manufacturing supervisor's salary of $100,000/ month - Manufacturing maintenance $120,000/ month - Manufacturing utilities $50,000/ month - Marketing Costs $25,000/ month - Other Selling Costs $12,000/ month ACTUAL INFORMATION: It turns out, BTI sold 100,000 units for $30/ each. Actual rubber needed per tire was 1.8lbs/ tire, and BTI had to purchase the rubber for $2.75/lb. BTI needed to pay $11/ hour for direct labor hours, and each tire required 1.5 hours/unit in labor. All other costs were as budgeted. BUDGETED INFORMATION: Bicycle Tires Inc (BTD) manufactures bicycle tires out of rubber. It plans to make/sell 75,000 tires in June at $35/ each. Use the following information to create the series of budgets that Bicycle Tires Inc. will need for the month, and do a variance analysis to understand the reasons for differences between budget and actual performance. BTI also has - Manufacturing supervisor's salary of $100,000/ month - Manufacturing maintenance $120,000/ month - Manufacturing utilities $50,000/ month - Marketing Costs $25,000/ month - Other Selling Costs $12,000/ month ACTUAL INFORMATION: It turns out, BTI sold 100,000 units for $30/ each. Actual rubber needed per tire was 1.8lbs/tire, and BTI had to purchase the rubber for $2.75/lb. BTI needed to pay $11/ hour for direct labor hours, and each tire required 1.5 hours/unit in labor. All other costs were as budgeted