Flexible Budgets, Direct$-$Cost Variances, and Management Control

Flexible Budget

Brabham Enterprises manufactures tires for the Formula I motor racing circuit. The company's budgeted and

actual amounts are as follows:

Use the blue shaded areas on the ENTERANSWERS tab for inputs.

Always use cell references and formulas where appropriate to receive full credit. If you

copy$/$paste from the Instructions tab or type the numbers in$,$ you will be marked

wrong.

Requirement

Prepare a performance report that uses a flexible budget and a static budget.

a$.$ Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted.

b$.$ Use the ABS function when calculating variances, and use the drop$-$down selections for $F($favorable$)$ or

$U($unfavorable$)$ when describing the variances.

c$.$ For variances with a zero amount, make sure to enter the result of $"=0"$ in the appropriate cell and

leave the drop$-$down to identify the variance as either F or U blank.

Prepare a performance report that uses a flexible budget and a static budget.

a$.$ Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted.

b$.$ Use the ABS function when calculating variances, and use the drop$-$down selections for $F($favorable$)$ or $U$

$($unfavorable$)$ when describing the variances.

c$.$ For variances with a zero amount, make sure to enter the result of $"=0"$ in the appropriate cell and leave the

drop$-$down to identify the variance as either F or $U$ blank.

$($Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the

Instructions tab or type the numbers in$,$ you will be marked wrong.$)$Flexible Budgets, Direct$-$Cost Variances, and Management Control

Flexible Budget

Brabham Enterprises manufactures tires for the Formula I motor racing circuit. The company's budgeted and

actual amounts are as follows:

Use the blue shaded areas on the ENTERANSWERS tab for inputs.

Always use cell references and formulas where appropriate to receive full credit. If you

copy$/$paste from the Instructions tab or type the numbers in$,$ you will be marked

wrong.

Requirement

Prepare a performance report that uses a flexible budget and a static budget.

a$.$ Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted.

b$.$ Use the ABS function when calculating variances, and use the drop$-$down selections for $F($favorable$)$ or

$U($unfavorable$)$ when describing the variances.

c$.$ For variances with a zero amount, make sure to enter the result of $"=0"$ in the appropriate cell and

leave the drop$-$down

to identify the variance as either F or U blank.

MetaBrabham Enterprises manufactures tires for the Formula I motor racing circuit. The company's budgeted and actual amounts are as follows:

Budgeted for August $2020$

Units to manufacture and sell $3,000$

Variable cost per tire $$73$

Total fixed costs $$57,000$

Budgeted selling price per tire $$111$

Actual Results for August $2020$

Units manufactured and sold $2,700$

Selling price per tire $$113$

Total variable costs $$218,700$

Total fixed costs $$53,500$Prepare a performance report that uses a flexible budget and a static budget.

a$.$ Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted.

b$.$ Use the ABS function when calculating variances, and use the drop$-$down selections for $F($favorable$)$ or $U$

$($unfavorable$)$ when describing the variances.

c$.$ For variances with a zero amount, make sure to enter the result of $"=0"$ in the appropriate cell and leave the

drop$-$down to identify the variance as either F or $U$ blank.

$($Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the

Instructions tab or type the numbers in$,$ you will be marked wrong.$)$