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CHIA Sheet 0 1 Flexible Budgets, Direct-Cost Variances, and Management Control Flexible Budget Sweeney Enterprises manufactures tires for the Formula 1 motor racing circuit. The company's budgeted and actual amounts are as follows: 5 Budgeted for August 2017 Units to manufacture and sell 3,550 Variable cost per tire $72 Total fixed costs $54,500 19 Budgeted selling price per tire $115 11 13 Actual Results for August 2017 Units manufactured and sold 3,500 Selling price per tire $116 Total variable costs $280,000 10 Total fixed costs $51,000 17 Use the blue shaded areas for inputs. Always use cell references and formulas where appropriate to receive full credit. 20 21 Requirement 21 Prepare a performance report that uses a flexible budget and a static budget. 22 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 24 selections for F (favorable) or U (unfavorable) when describing the variances. c. 35 For variances with a zero amount, make sure to enter the result of "-0 in the appropriate cell and leave the drop-down to identify the variance as either F 8 30 Prepare a performance report that uses a flexible hudent and a static burdant + CHO Shoot D om hun N 23 Use the ABS Tunction when calculating vanances, and use the drop-down selections for F (favorable) or (unfavorable) when describing the variances For variances with a zero amount, make sure to enter the result of 0 in the appropriate cell and leave the drop-down to identify the variance as either F C 28 30 Prepare a performance report that uses a flexible budget and a static budget. a 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 (unfavorable) when describing the variances c. For variances with a zero amount, make sure to enter the result of in the appropriate cell and leave the 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 Instruction tab you will be marked wrong.) 33 Actual Flexible-Budget Flexible Sales-Volume Static Results Variance Budget Variances Budget "Variances should be presented as positive numbers usin 34 Units sold 3.500 3,500 0 100 3,550) Revenues $ 406,000 $ 402.500 S408,250 00 Variable costs 17 Contribution margid 311 Fixed costs Operating income 40 41 43 55 46 47 50