Electrify My Wheels (EMW) performs electric vehicle conversions on customers' vintage sedans and utes. The company's budget for 2020 reveals 265 vehicle conversions were planned for the year, for a standard fee $13500 per vehicle. Standard (budgeted) inputs for each vehicle conversion are 17 hours of labour @ $48 per hour and $8400 in direct materials (for a conversion kit supplied by a third party). Indirect materials are applied at $23 per labour hour. The company has also budgeted for annual insurance $1000 and advertising $2000. Despite various business interruptions during the year, an analysis of accounting records at the end of 2020 revealed the company had used a total 5320 labour hours and performed 280 vehicle conversions. The general ledger revealed the following revenues and expenses had been incurred during the year: Sales revenue 3,360,000.00 Wages expense 218,120.00 Direct materials expense 2,184,000.00 Indirect materials expense 135,660.00 Insurance expense 1,500.00 Advertising expense 2,000.00 Required: 1. Use the information provided to prepare a budget, flexible budget and actual income statement in the table below (16 marks) Please round your answers to the nearest dollar. Show absolute values, do not use - sign for negative numbers. Choose "F" for favourable variances and where there is no variance, or "U" for unfavourable variances. You may need to scroll right to see all columns. Income Statement Original budget Quantity Variance Flexible budget Price Variance Actual results Sales Quantity Labour hours Sales revenue ($) Wages expense ($) Direct materials ($) Indirect materials ($) Insurance expense ($) Advertising expense ($) Net profit or loss ($) Electrify My Wheels (EMW) performs electric vehicle conversions on customers' vintage sedans and utes. The company's budget for 2020 reveals 265 vehicle conversions were planned for the year, for a standard fee $13500 per vehicle. Standard (budgeted) inputs for each vehicle conversion are 17 hours of labour @ $48 per hour and $8400 in direct materials (for a conversion kit supplied by a third party). Indirect materials are applied at $23 per labour hour. The company has also budgeted for annual insurance $1000 and advertising $2000. Despite various business interruptions during the year, an analysis of accounting records at the end of 2020 revealed the company had used a total 5320 labour hours and performed 280 vehicle conversions. The general ledger revealed the following revenues and expenses had been incurred during the year: Sales revenue 3,360,000.00 Wages expense 218,120.00 Direct materials expense 2,184,000.00 Indirect materials expense 135,660.00 Insurance expense 1,500.00 Advertising expense 2,000.00 Required: 1. Use the information provided to prepare a budget, flexible budget and actual income statement in the table below (16 marks) Please round your answers to the nearest dollar. Show absolute values, do not use - sign for negative numbers. Choose "F" for favourable variances and where there is no variance, or "U" for unfavourable variances. You may need to scroll right to see all columns. Income Statement Original budget Quantity Variance Flexible budget Price Variance Actual results Sales Quantity Labour hours Sales revenue ($) Wages expense ($) Direct materials ($) Indirect materials ($) Insurance expense ($) Advertising expense ($) Net profit or loss ($)
