Closure Company and Pull Company are seeking your assistance with compiling flexible budgets, performance reports, and overhead variances.

Directions: Each question of this assignment should be prepared as a separate sheet in one Excel file. Please change the sheet names at the bottom of the page to the question number. Then, follow the directions for each question below. Be sure to show your calculations and label your work for full credit.

Question 1

You have recently been hired by Closure Company, which produces windows for personal homes. Based on the following information prepare a flexible budget for 3000, 3500 and 4000 units.

Direct Materials per Unit: $15.00

Direct Labor per Unit: $20.00

Variable Overhead Cost per Unit: $5.00

Fixed Overhead: $50,000 per year