Question #1 Prepare the Static Budget, Actual Budget and Flexible Budget for Mile High Cycles.

Required: You should prepare a spreadsheet showing each budget. There are no sales prices, so just the costs are to be analyzed.

1. Assume that the ratio of fixed to variable overhead costs actually stayed the same as expected. So 1/3 fixed and 2/3 variable.
2. Assume that overhead is allocated on a per unit basis.