Q3

7-24 Flexible budget working backward. The Alpha Company manufactures designer jewelry for jewelry stores.A new accountant intern at Alpha Company has accidentally deleted the calculations on the company's vari- ance analysis calculations for the year ended December 31, 2017. The following table is what remains of the data. Home Insert E F Page Layout Formulas Data Review View B D Performance Report, Year Ended December 31, 2017 1 2 Flexible-Budget Flexible Budget Sales-Volume Variances Variances 3 4 Units sold 5 Revenues (sales) 6 Variable costs 7 Contribution margin 8 Fixed costs 9 Operating income Actual Results 150.000 $975,000 675,000 300,000 150,000 $150.000 Static Budget 140,000 $630,000 350,000 280,000 130,000 $150,000 Required 1. Calculate all the required variances. (If your work is accurate, you will find that the total static-budget variance is $0.) 2. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit? 3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learned here