Can you please provide formulas for the following. Vaughan Company had a dismal $3$rd Quarter! Management had wanted to wait until quarter end to do a

post mortem of the annual results and do some investigations if necessary. Here is what actually happened:

Total sales were $$1,053,000$ for $30,000$ units. Management failed to be able to buy enough

direct materials to produce the required units for ending inventory nor to keep the required

direct materials on hand for ending inventory requirements due to a shortage of WHAM during

the quarter.

Total Production for $3$rd quarter was $30,000$ units. Vaughan uses LIFO inventory method. Regarding

WHAM, Vaughan purchased and used $26,000$ pounds at a total cost of $$209,300.$ Vaughan used $18,900$

DLH $($direct labor hours$)$ to make the $30,000$ units at a total labor cost of $$275,800.$ Actual Variable FOH

was $$24,700$ and actual Fixed FOH was $$41,000.$

Even though Production ended up being $30,000$ units, the cash borrowings indicated by the

static budget dictated that Vaughan borrow money $($$$29,000)$ on the last day of July and they did so$.$

They also paid it back at the end of the August as budgeted.

Selling and Administrative expenses totaled $$337,000.$ $$100,300$ was variable and the rest was

fixed. We have not covered S&A variances, but never the less, the difference between what

actually occurred and what should have happened $($the flexible budget$)$ can still be illuminating.

In this Google Sheet:

$($a$)$ Prepare a standard cost card for a widget.

$($b$)$ Prepare an flexible budget performance report comparing actual production$/$sales to a flexible

budget of such sales$/$costs

$($c$)$ Prepare the direct material variances $($price and efficiency$/$quantity$)$ for each material

$($d$)$ Prepare the direct labor variances $($price$/$rate and efficiency$)$

$($e$)$ Prepare the Variable $($spending & efficiency$)$ and Fixed FOH $($budget$/$spending & volume$)$

variances. $($refer to the appendix for the factory overhead variances$)$

$($f$)$ What should management be looking into for further investigation?

$($g$)$ Do you think they should have waited until the end of the quarter to analyze the differences

between actual results and planned results? Why or why not?

$($h$)$ Is FOH over or underapplied? And by how much? Draw a T$-$account and show FOH.

Does your answer match with the answers you calculated for Variable and Fixed FOH variances?