Completion of the project requires the student to construct a spreadsheet that facilitates entering a company's forecast information and the actual results of operations. The Master (Static) Budget, the Flexible Budget, and the Actual Operating Statement in addition to the amount of variances will be calculated automatically and the appropriate reconciliation completed.

The completed project will contain a sheet for input of data and a sheet for output. A template containing labels is provided. The student is responsible for entering the one formula on the input sheet and the formulas on the second sheet. The second sheet contains no input cells. All cells are labels or formulas.

Here are some specifics about this company's operations and cost accounting practices:

There are no opening or closing inventories.

Overhead allocation is based on labor hours.

The company separates variable overhead allocation from fixed overhead allocation.

The company posts standard costs toward its operating statement for direct costs (DM, DL, VFOH, FFOH) and actual amounts for revenue and indirect costs (Selling and Administration).

The company writes off variances directly to cost of goods sold.

Budgeted and Actual Input Data [DO NOT CHANGE THE FORMAT] Forecast Information Actual Results Sales Volume (units) 4,500 Sales Price per unit 300.00 Standard Costs Materials Kilograms per output unit Cost per kilogram 70.0 1.00 Labor Sales Volume (units) Sales Revenue Materials Kilograms used Total cost of materials 7,200 2,340,000 540,000 486,000 Labor Hours per output unit Cost per hour Variable overhead Cost per labor hour Sales commission rate per unit 6.0 15.00 7.50 15.00 Hours used Total cost of labor 46,800 748,800 Variable overhead Total incurred 374,400 Sales commissions 106,000 Fixed overhead Manufacturing Selling and administration 135,000 24,000 Contribution Margin per unit Fixed overhead Manufacturing Selling and administration FFOH Burden rate per labor hour 125,000 22,500 Sales Volume (in units) Variance Summary: Favorable (Unfavorable) Static Budget 4,500 Actual Revenues and Costs 7,200 Flexible Budget ? 1,350,000 2,340,000 ? Sales Volume Variance Flexible Budget Variance Sales Revenue Cost of Goods Sold Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total Variable Cost FB Variances Material Price Usage Labor Rate Efficiency VMOH Rate Efficiency VS&A 315,000 Gross Profit Selling and Administration Commissions Other Total Operating income before tax Static Budget Variance Sales Price Variance Fixed Cost Spending Variances FMOH Spending FS&A Spending 212,500 465,800 Static Budget Variance Non - cash Variance FMOH Production Volume (denominator)