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 Clear Company, which produces windows for personal homes. Based on the following information, prepare a flexible budget for 3,500; 4,000; and 4,500 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

Question 2

Based on the flexible budget from Scenario 1, prepare a performance report if the company has the following actual costs for 3,500 units this month:

• Actual production was 3,500 units.
• Actual direct materials were $53,000.
• Actual direct labor costs were $69,500.
• Actual variable overhead costs were $18,000.
• Actual fixed overhead costs were $50,000.

Question 3

Forty Company has the following information for the month. Compute the variable overhead spending variance, variable overhead efficiency variance, and the total variable overhead variance based on the following information:

• Standard variable overhead rate: $6.00 per direct labor hour
• Actual variable overhead costs: $10,000
• Standard hours allowed per unit: 0.50 hours
• Actual direct labor hours worked: 2,000 hours
• Units produced: 3,500