make a spreadsheet showing a flexible budget

Another plant in your Division manufactures sets of hand weights. A new budgeting system has just been implemented. The budget was based on carefully prepared sales forecast and production schedules. It was anticipated that during the year 120,000 sets would be manufactured, spread equally over each month and requiring 960,000 direct labor hours. The overhead budget was based on careful analysis of fixed and variable costs. The CEO is disturbed because the actual costs for February were over the budgeted amounts. The accountant's report showed the yearly and monthly budgeted amounts and the actual results for February as follows: more accurate meave of whether the front costs containment have been Yearly Actual for Yearly Yearly Monthly Cost Item Variable February Fixed Total Budget Indirect Materials $ 960.000 $ 48,000 $1,008,000 $ 84,000 $ 99.000 Indirect Labor 294,000 158,000 450,000 37,500 29,500 Labor Fringe Benefits 1,656.000 30.000 1.686,000 140,500 150,200 Utilities 96,000 60,000 156,000 13,000 15,200 Repairs and Maintenance 96,000 30.000 126,000 10,500 14.700 Miscellaneous 48.000 38,000 84,000 7,000 7,475 Depreciation 72 000 72.000 6,000 6,000 Property Taxes & Insurance 86.400 86.400 7,200 7200 $3.150.000 $518.400 $3.668 400 $305,700 $325.075 Your group has discovered that production during the month was 11,200 units, requiring 89,600 direct labor hours. REQUIRED: Explain to the CEO how a flexible budget would be a better tool for evaluating the performance of this plant. Create a spreadsheet to perform appropriate computations and present variances? Which cost areas should be investigated (assume 5% or more off of the budget is considered significant)? Which personnel related to this plant should be called in to better determine the causes of significant deviations from the budget? Conclude your presentation by thanking the CEO for her time and asking if there are any questions or other matters that she wants to discuss met. using a flexible budget for performance eucleation at the end of a pored provides a