Flexible Budget 8500 7000 9000 Instructions: Prepare the Flexible Budget at 7000 units, 8500 units and 8000 units Fixed Budget Fixed or Variable Cost Cost per Unit/Pricer per unit 2,800,000 8,000 480,000 360,000 120,000 72,000 1,032,000 1,768,000 1 311 Homework 10 2 Budgeted Income Statement 3 Sales 4 Sales Units SCOGS 6 Direct Materials 7 Direct Labor Production Supplies Plant Manager Salary 10 Total COGS 11 Gross Profit 12 Selling Expenses 13 Sales Commissions 14 Packaging 15 Advertising 16 Total Selling Expenses 17 Administrative Expenses 18 Administrative Salaries 19 Depreciation - Office Equipment 20 Insurance 21 Office Rent 22 Total Administrative Expenses 23 Net Income from operations 160,000 80,000 100,000 340,000 90,000 25,000 20,000 30,000 165,000 1,263,000 1 311 Homework 10 2 Costs 3 Direct materials 4 Direct labor 5 Overhead 6 Units manufactured Instructions: Calculate the DM, DL and Overhead Variances, as well as the DM Price Variance, DM quantity variance, DL Rate variance and DL efficiency variance Standard Actual 15lbs @ $4/1b 138,000 lbs @ $3.75/lb 3 hrs @$ 15/hr 31,000 hrs @ $15.10/hr 3 hrs @ $8/hr 210,000 9,000 Standard Cost @actual level Favorable or Actual Cost of production Variance Unfavorable 7 Variance Calculation 8 Direct materials 9 Direct labor 10 Overhead 11 TOTAL 12 Direct Materials Variance 13 Price Variance 14 15 Quantity Variance 16 17 18 Direct Labor Variance Rate Variance 19 Efficiency Variance 20