Question is on 2nd last picture.

Bad 2 Budget - Data Input Sheet 3 Sales Information: 4 Bales Growth Assumptions: 2% per quarter for the basic model (mature life stage) 5 5% per quarter for the deluxe model (growth stage) 6 2017 7 Sales in units: 2018 2019 Ending Selling 8 Q1 Q2 Q3 Q4 Year total Q1 Q2 Inventory Price 9 Basic 4,000 4,080 4,162 4,245 16,486) 4,330 4.416 807 $150 10 Deluxe 2,000 2,100 2,205 2,315 8,620 2,431 2,553 98 $350 11 12 Collection Information: 13 Credit Policy Cash Sales Credit Sales In same In next In third In fourth 14 30% 70% Quarter Quarter Quarter Quarter Debt Sales 15 Collection Policy 60% 30% 9% 0% 1% Inventory 16 Credit/Collections 17 Collections from prior year: Purchasing 18 Accounting 19 Prior Actual Actual Budgeted Receipts in Current Year Production 20 Year Sales Collected Q1 Q2 Q3 Q4 Year 21 Q3 $779,800 $725,214 $49,127 $0 $0 $0 $49,127 22 Q4 $901,350 $648,900 $189,284 $56,785 $0 $0 $246,069 23 $238,411 $56,785 $0 $0 $295,196 24 25 Manufacturing Information: 26 Direct Materials Ending Inventory 15% of next quarter's production needs 27 Basic Bicycle Ending Inventory 20% of next quarter's sales needs 28 Deluxe Bicycle Ending Inventory 5% of next quarter's sales needs 29 30 Direct Material Information: Direct Labor Information: 31 2017 Hours of DL per Basic bike: 21 32 Units Cost per Ending Hours of DL per Deluxe bike: 5 33 Basic Bike Needed Unit Bike Inventory Wages per Hour: $14 34 Steel 2 $15.00 $30.00 1295) 35 Rubber Handles 2 $2.00 1286 Manufacturing OH Information: 36 Seat 1 $4.00 $4.00 640 Variable OH Allocation per DL hr: $1.75 37 Chain 1 $6.00 $6.00 652 38 Fires 2 $10.00 $20.00 1275 Fixed OH per year: $250,000 39 Gear Shift 1 $8.00 $8.00 609 Amount of Fixed OH from Depr: 25% 40 Brake Unit 1 $6.00 $6.00 658 41 Standard Cost: 42 Deluxe Bike Basic Bike $ 116.05 43 Steel 3.5 $15.00 $52.501 Deluxe Bike $ 228.63 44 Special Handles 2 $5.00 $10.00 32 45 Specialty Seat 1 $14.00 $14.000 26 A/P Purchase Payment Policy 46 Chain 1 $6.00 $6.00 Payments made in current Q 75.0% 47 rires 2 $10.00 $20.000 Payments made in next Q 25.0% 48 Expanded Shift 1 $25.00 $25.00 34 49 Brake Unit 1 $6.00 $6.00 50 Prior year purchases 51 Actual Actual Budgeted Pay 52 * inventory for standard items is used for both bikes Total Purch Paid Q1 Q2 53 but only shown here for the Basic Bike $452,650 $338,700 $113,950 $0 54 Cost per $4.00 Selling and Administrative Expense Information: stage) tage) Variable S&A for Basic bikes: Variable S&A for Deluxe bikes: $15 $20 C019 Q1 4,330 2.431 Fixed S&A Expenses per year: 2017 Ending Selling Inventory Price 807 $150 98 $350 Q2 4,416 2,553 Advertising Executive Salaries Property Taxes Office Rent Cleaning Fees R&D Costs $125.000 $65,000 $7,800 $12,000 $6,000 $18,500 Bad urth ter Debt 0% 1% Sales Inventory Credit Collections Purchasing Accounting Production Cash Flow and Investment Information: Requirements ent Year Q4 $0 $0 $0 Minimum Cash Balance: Dividends $30,000 Year $49,127 $246,069 $295, 196 Required Dividend Payment each Qtr: $10,000 Planned Expansion (Purchase of Equipment) Budgeted Purchases in Current Year Q1 Q2 03 04 Year $50,000 $75,000 $40,000 $22,000 $187,000 Debt Information: t Labor Information: Hours of DL per Basic bike: Hours of DL per Deluxe bike: Wages per Hour: 2. 5 $14 Amount owed on bond Interest rate on bond $997,600 5% ufacturing OH Information: Variable OH Allocation per DL hr: Line of Credit Max: $2,000,000 Interest Rate on LofC: 12% $1.75 Common Stock information: Fixed OH per year: Amount of Fixed OH from Depr: $250,000 25% Shares of stock outstanding: 100.000 at $10 per share dard Cost: Basic Bike $ 116.05 Deluxe Bike $ 228.63 Miscellaneous Information: Purchase Payment Policy ents made in current Q ents made in next Q 75.0% 25.0% The company's tax rate is: 30% Last year the company paid taxes of: $108,500 Amount of last year's tax to pay this year: 105% Total tax to prepay this year: $113,925 Payment due each quarter: $28,481 Prior year purchases Actual Actual Total Purch Paid $452,650 $338,700 Q1 $113,950 Budgeted Payments in Current Year 02 Q3 Q4 Year $0 $0 $0 $113,950 Bob's Bicycles Balance Sheet As of December 31, 2017 Assets Current Assets Cash Accounts Receivable Direct Materials Inventory Finished Good Inventory Total Current Assets $30,176 $295,196 $51,413 $116,060 $492,845 Property, Plant, and Equipment Building Equipment Accumulated Depr - Equipment $1,500,000 $1,500,000 ($875,000) Total PPE $2,125,000 Total Assets $2,617,845 Liabilities and Stock Holder's Equity Liabilities Accounts Payable Bonds Payables $113,950 $997,600 Total Liabilities $1,111,550 Stockholder's Equity Common Stock (100,000 shares outs Retained Earnings Total Stockholder's Equity $1,000,000 $506,295 $1,506,295 Total Liabilities and Stockholder's Equity $2,617,845 1 2 Bob's Bicycles Pro Forma Contribution Margin Income Statement For Year ended December 31, 2018 3 4 Static budget Basic Deluxe 16,486 8,620 Flexible budget Basic 17,074 Deluxe 8,356 Actual Results 17,074 8,356 Per Unit Overall Per Unit Overall Overall Sales Revenue Basic Deluxe Total Sales Revenue $150.00 $350.00 $2,472,965 $3,017,088 $5,490,052 $150.00 $350.00 $2,561,100 $2,924,600 $5,485,700 $2,475,730 $2,966,380 $5,442,110 Variable Costs Direct Materials Basic Deluxe Total Direct Materials $78.00 $133.50 $1,285,942 $1,150,803 $2,436,745 $78.00 $133.50 $1,331,772 $1,115,526 $2,447,298 $2,591,693 Direct Labor Basic Deluxe Total Direct Labor $28.00 $70.00 $461,620 $603,418 $1,065,038 $28.00 $70.00 $478,072 $584,920 $1,062,992 $1,126,246 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Variable Manufacturing Overhead Basic Deluxe Total Variable Manufacturing Overhead $3.50 $8.75 $57,703 $75,427 $133.130 $3.50 $8.75 $59,759 $73,115 $132,874 $139,878 Variable S&A Basic Deluxe Bad Debt Expense, Basic Bad Debt Expense, Deluxe Total Variable S&A $15.00 $20.00 $1.05 $2.45 $247,296 $172,405 $17,311 $21,120 $458,132 $15.00 $20.00 $1.05 $2.45 $256,110 $167,120 $17,928 $20,472 $461,630 $438,604 Total Basic Bike Variable Costs Total Deluxe Bike Variable Costs $125.55 $234.70 $2,069,872 $2,023,173 $2,143,641 $1,961,153 Total Variable Costs $4,093,044 $4,104,794 $4,296,421 Basic Bike Contribution Margin Deluxe Bike Contribution Margin Total Contribution Margin $24.45 $115.30 $403,093 $993,915 $1,397,008 $417,459 $963,447 $1,380,906 $1,145,689 49 50 Fixed Costs Manufacturing Costs S&A Costs Interest Expense Income Tax Expense Total Fixed Costs $250,000 $234,300 $49,880 $259,080 $793,260 $250,000 $234,300 $49,880 $259,080 $793,260 $260,000 $237,050 $50,860 $171,655 $719,565 51 52 53 54 Contribution Margin Income $603,748 $587,646 $426,124 55 56 57 58 59 60 61 62 Reconciling Absorption and Variable Net Incomes Absorption Costing Net Income Contribution Margin Net Income Difference to be Reconciled $604,520 $603,748 $772 $ Total POHR Variable Overhead Rate 5.03 $1.75 $3.28 Fixed Overhead Rate Total Basic Bikes 16,545 16.486 59 $3.28 2 $6.55 Budgeted Units produced Budgeted Units sold Difference between Units Produced and Sold Fixed Overhead Rate Production Hours Applied Fixed Cost per unit Difference between Absorption and Variable Net Income (Difference in Units Produced and Sold * Deluxe Bikes 8,644 8,620 24 $3.28 5 $16.38 82 $386 $386 $772 Calculating Break Even Point and Safety Margin Budgeted Units Sold Basic Deluxe 16,486 8,620 25,107 66% 34% Total Sales Weighted Average Contribution Margin Basic Deluxe CM/Unit $24.45 $115.30 % of Total Sales 66% 34% Weighted Average CM $16.06 $39.59 $55.64 Break-Even Point (in Units) Fixed Costs Ave CM $793,260 $55.64 14,257 Margin of Safety Calculations Basic Deluxe 16,486 8,620 Budgeted Sales Break-Even Point per Product Total Break-Even Point % of Total Sales Required Sales to Break-Even Margin of Safety 14,257 66% 9.362 7,124 14,257 34% 4,895 3,725 00:02 DOO + 35%. Bobs Bicycles Student A01 22MAR - Saved o File Home Insert Draw Formulas Data Review View A 123 2Y- Sensitivity fx B D E F G H 1 J L M Direct Material Variances Direct Labor Variances Overall 1 2 3 4 5 6 7 8 9 10 10 11 12 AP (average) AQ $14.52 77,559 AP XAQ $1,126.246 DL Rate Variance $ 40,420 U Total $ Steel: Actual #units x SQ = EQ AP AQ SP EQ Actual DM Expenditures Budgeted DM Expenditures $ 2,591,693 $2,447,298 Total DM Variance $ 144,395 U AP (Average) AQ SP EQ $15.73 63,767 $15.00 63,394 AP X AQ AQ x SP SP X EQ $ 1,002,772 $ 956,498 $ 950,910 Steel Price Variance Steel Quantity Variance $ 46,274 $ 5,588 U U Total Steel Variance $ 51,862 U AP AQ SP EQ 34,427 $2.00 34,148 AP X AQ AQ X SP SP X EQ $ 85.393 $ 68,854 $ 68,296 Rbr. Handles Price Varianter. Handles Quantity Variance $ 16,539 $ 558 U Total Rubber Handles Variance $ 17,097 U AP AQ SP EQ AP x AQ AQ X SP SP X EQ Seat Price Variance Seat Quantity Variance 16 17 18 19 Rubber 20 Handles: 21 22 23 24 25 20 26 27 28 29 29 Seat: 30 31 32 32 22 33 21 34 25 35 26 36 37 38 39 Chain: 40 41 42 43 44 45 * 46 47 48 49 Tires: 50 ou 51 52 WA 53 0 54 34 55 09 ES 00 57 50 58 50 59 Gear 60 Shift Total Seat Variance $ 7,711 F AP AQ SP EQ AP X AQ AQ x SP SP X EQ Chain Price Variance Chain Quantity Variance Total Chain Variance $ 12,965 U AP AQ SP EQ AP X AQ AQ x SP SP X EQ Tires Price Variance Tires Quantity Variance Total Tires Variance $ 27,993 U AP AQ SP lol AP XAQ AQ X SP SP X EQ Gear Shift Price Variance Gear Shift Quantity Variance 61 62 63 64 65 66 67 68 69 09 70 71 72 14 73 ZA 14 25 75 76 Total Gear Shift Variance $ 5,076 U AQ SP AP EQ Brake Unit: AP X AQ AQ X SP SP X EQ Brake Price Variance Brake Quantity Variance Total Brake Variance $ 19,565 U AP AQ SP EQ AP X AQ AQ X SP SP X EQ 77 70 78 79 Specialty an 80 Handles: 81 82 83 84 85 86 87 Sp. Handles Price Varianc&p. Handles Quantity Variance Total Specialty Handles Variance $ 4,314 + Basic Information Direct Materials Variances Revenue Variance Pro AP AQ SP EQ AP X AQ AQ x SP SP X EQ Sp. Seat Price Variance Sp. Seat Quantity Variance Total Specialty Seat Variance $ 32,890 89 Specialty 90 Seat: 91 92 93 94 95 96 97 98 99 Expanded 100 Shift: 101 102 103 104 105 106 107 108 109 AP AQ SP EQ AP X AQ AQ x SP SP x EQ Exp. Shift Price Variance Exp. Shift Quantity Variance Total Expanded Shift Variance $ 19,656 U A B D E F 1 2 Basic Deluxe Basic Deluxe Basic Deluxe 3 4. Sales Variances (Revenue) 5 6 Actual Sales Flexible Budget Sales 7 8 9 Actual Volume Average Selling Price Actual Volume Standard Selling Price 17,074 ???? $2,475,730.00 8,356 ???? $2,966,380.00 17,074 $150.00 $2,561,100.00 8,356 $350.00 $2,924,600.00 Sales Price Variance $85,370.00 $41,780.00 Unfavourable Favourable $43,590.00 Unfavourable 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 $5,442,110.00 $47,942.30 Unfavourable Provide a reason for the price and quantity variance for each of the bike models. How might the variances of one model impact the variance of the other model? Policies? Strategies? Market Environment? 28 29 30 31 32 33 34 35 Basic Deluxe Basic Deluxe Static Budget Sales Budgeted Volume X Standard Selling Price 16,486 $150.00 $2,472,964.80 8,620 $350.00 $3,017,087.50 Sales Quantity Variance $88,135.20 $92,487.50 Favourable Unfavourable $4,352.30 Unfavourable $5,490,052.30 Bad 2 Budget - Data Input Sheet 3 Sales Information: 4 Bales Growth Assumptions: 2% per quarter for the basic model (mature life stage) 5 5% per quarter for the deluxe model (growth stage) 6 2017 7 Sales in units: 2018 2019 Ending Selling 8 Q1 Q2 Q3 Q4 Year total Q1 Q2 Inventory Price 9 Basic 4,000 4,080 4,162 4,245 16,486) 4,330 4.416 807 $150 10 Deluxe 2,000 2,100 2,205 2,315 8,620 2,431 2,553 98 $350 11 12 Collection Information: 13 Credit Policy Cash Sales Credit Sales In same In next In third In fourth 14 30% 70% Quarter Quarter Quarter Quarter Debt Sales 15 Collection Policy 60% 30% 9% 0% 1% Inventory 16 Credit/Collections 17 Collections from prior year: Purchasing 18 Accounting 19 Prior Actual Actual Budgeted Receipts in Current Year Production 20 Year Sales Collected Q1 Q2 Q3 Q4 Year 21 Q3 $779,800 $725,214 $49,127 $0 $0 $0 $49,127 22 Q4 $901,350 $648,900 $189,284 $56,785 $0 $0 $246,069 23 $238,411 $56,785 $0 $0 $295,196 24 25 Manufacturing Information: 26 Direct Materials Ending Inventory 15% of next quarter's production needs 27 Basic Bicycle Ending Inventory 20% of next quarter's sales needs 28 Deluxe Bicycle Ending Inventory 5% of next quarter's sales needs 29 30 Direct Material Information: Direct Labor Information: 31 2017 Hours of DL per Basic bike: 21 32 Units Cost per Ending Hours of DL per Deluxe bike: 5 33 Basic Bike Needed Unit Bike Inventory Wages per Hour: $14 34 Steel 2 $15.00 $30.00 1295) 35 Rubber Handles 2 $2.00 1286 Manufacturing OH Information: 36 Seat 1 $4.00 $4.00 640 Variable OH Allocation per DL hr: $1.75 37 Chain 1 $6.00 $6.00 652 38 Fires 2 $10.00 $20.00 1275 Fixed OH per year: $250,000 39 Gear Shift 1 $8.00 $8.00 609 Amount of Fixed OH from Depr: 25% 40 Brake Unit 1 $6.00 $6.00 658 41 Standard Cost: 42 Deluxe Bike Basic Bike $ 116.05 43 Steel 3.5 $15.00 $52.501 Deluxe Bike $ 228.63 44 Special Handles 2 $5.00 $10.00 32 45 Specialty Seat 1 $14.00 $14.000 26 A/P Purchase Payment Policy 46 Chain 1 $6.00 $6.00 Payments made in current Q 75.0% 47 rires 2 $10.00 $20.000 Payments made in next Q 25.0% 48 Expanded Shift 1 $25.00 $25.00 34 49 Brake Unit 1 $6.00 $6.00 50 Prior year purchases 51 Actual Actual Budgeted Pay 52 * inventory for standard items is used for both bikes Total Purch Paid Q1 Q2 53 but only shown here for the Basic Bike $452,650 $338,700 $113,950 $0 54 Cost per $4.00 Selling and Administrative Expense Information: stage) tage) Variable S&A for Basic bikes: Variable S&A for Deluxe bikes: $15 $20 C019 Q1 4,330 2.431 Fixed S&A Expenses per year: 2017 Ending Selling Inventory Price 807 $150 98 $350 Q2 4,416 2,553 Advertising Executive Salaries Property Taxes Office Rent Cleaning Fees R&D Costs $125.000 $65,000 $7,800 $12,000 $6,000 $18,500 Bad urth ter Debt 0% 1% Sales Inventory Credit Collections Purchasing Accounting Production Cash Flow and Investment Information: Requirements ent Year Q4 $0 $0 $0 Minimum Cash Balance: Dividends $30,000 Year $49,127 $246,069 $295, 196 Required Dividend Payment each Qtr: $10,000 Planned Expansion (Purchase of Equipment) Budgeted Purchases in Current Year Q1 Q2 03 04 Year $50,000 $75,000 $40,000 $22,000 $187,000 Debt Information: t Labor Information: Hours of DL per Basic bike: Hours of DL per Deluxe bike: Wages per Hour: 2. 5 $14 Amount owed on bond Interest rate on bond $997,600 5% ufacturing OH Information: Variable OH Allocation per DL hr: Line of Credit Max: $2,000,000 Interest Rate on LofC: 12% $1.75 Common Stock information: Fixed OH per year: Amount of Fixed OH from Depr: $250,000 25% Shares of stock outstanding: 100.000 at $10 per share dard Cost: Basic Bike $ 116.05 Deluxe Bike $ 228.63 Miscellaneous Information: Purchase Payment Policy ents made in current Q ents made in next Q 75.0% 25.0% The company's tax rate is: 30% Last year the company paid taxes of: $108,500 Amount of last year's tax to pay this year: 105% Total tax to prepay this year: $113,925 Payment due each quarter: $28,481 Prior year purchases Actual Actual Total Purch Paid $452,650 $338,700 Q1 $113,950 Budgeted Payments in Current Year 02 Q3 Q4 Year $0 $0 $0 $113,950 Bob's Bicycles Balance Sheet As of December 31, 2017 Assets Current Assets Cash Accounts Receivable Direct Materials Inventory Finished Good Inventory Total Current Assets $30,176 $295,196 $51,413 $116,060 $492,845 Property, Plant, and Equipment Building Equipment Accumulated Depr - Equipment $1,500,000 $1,500,000 ($875,000) Total PPE $2,125,000 Total Assets $2,617,845 Liabilities and Stock Holder's Equity Liabilities Accounts Payable Bonds Payables $113,950 $997,600 Total Liabilities $1,111,550 Stockholder's Equity Common Stock (100,000 shares outs Retained Earnings Total Stockholder's Equity $1,000,000 $506,295 $1,506,295 Total Liabilities and Stockholder's Equity $2,617,845 1 2 Bob's Bicycles Pro Forma Contribution Margin Income Statement For Year ended December 31, 2018 3 4 Static budget Basic Deluxe 16,486 8,620 Flexible budget Basic 17,074 Deluxe 8,356 Actual Results 17,074 8,356 Per Unit Overall Per Unit Overall Overall Sales Revenue Basic Deluxe Total Sales Revenue $150.00 $350.00 $2,472,965 $3,017,088 $5,490,052 $150.00 $350.00 $2,561,100 $2,924,600 $5,485,700 $2,475,730 $2,966,380 $5,442,110 Variable Costs Direct Materials Basic Deluxe Total Direct Materials $78.00 $133.50 $1,285,942 $1,150,803 $2,436,745 $78.00 $133.50 $1,331,772 $1,115,526 $2,447,298 $2,591,693 Direct Labor Basic Deluxe Total Direct Labor $28.00 $70.00 $461,620 $603,418 $1,065,038 $28.00 $70.00 $478,072 $584,920 $1,062,992 $1,126,246 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Variable Manufacturing Overhead Basic Deluxe Total Variable Manufacturing Overhead $3.50 $8.75 $57,703 $75,427 $133.130 $3.50 $8.75 $59,759 $73,115 $132,874 $139,878 Variable S&A Basic Deluxe Bad Debt Expense, Basic Bad Debt Expense, Deluxe Total Variable S&A $15.00 $20.00 $1.05 $2.45 $247,296 $172,405 $17,311 $21,120 $458,132 $15.00 $20.00 $1.05 $2.45 $256,110 $167,120 $17,928 $20,472 $461,630 $438,604 Total Basic Bike Variable Costs Total Deluxe Bike Variable Costs $125.55 $234.70 $2,069,872 $2,023,173 $2,143,641 $1,961,153 Total Variable Costs $4,093,044 $4,104,794 $4,296,421 Basic Bike Contribution Margin Deluxe Bike Contribution Margin Total Contribution Margin $24.45 $115.30 $403,093 $993,915 $1,397,008 $417,459 $963,447 $1,380,906 $1,145,689 49 50 Fixed Costs Manufacturing Costs S&A Costs Interest Expense Income Tax Expense Total Fixed Costs $250,000 $234,300 $49,880 $259,080 $793,260 $250,000 $234,300 $49,880 $259,080 $793,260 $260,000 $237,050 $50,860 $171,655 $719,565 51 52 53 54 Contribution Margin Income $603,748 $587,646 $426,124 55 56 57 58 59 60 61 62 Reconciling Absorption and Variable Net Incomes Absorption Costing Net Income Contribution Margin Net Income Difference to be Reconciled $604,520 $603,748 $772 $ Total POHR Variable Overhead Rate 5.03 $1.75 $3.28 Fixed Overhead Rate Total Basic Bikes 16,545 16.486 59 $3.28 2 $6.55 Budgeted Units produced Budgeted Units sold Difference between Units Produced and Sold Fixed Overhead Rate Production Hours Applied Fixed Cost per unit Difference between Absorption and Variable Net Income (Difference in Units Produced and Sold * Deluxe Bikes 8,644 8,620 24 $3.28 5 $16.38 82 $386 $386 $772 Calculating Break Even Point and Safety Margin Budgeted Units Sold Basic Deluxe 16,486 8,620 25,107 66% 34% Total Sales Weighted Average Contribution Margin Basic Deluxe CM/Unit $24.45 $115.30 % of Total Sales 66% 34% Weighted Average CM $16.06 $39.59 $55.64 Break-Even Point (in Units) Fixed Costs Ave CM $793,260 $55.64 14,257 Margin of Safety Calculations Basic Deluxe 16,486 8,620 Budgeted Sales Break-Even Point per Product Total Break-Even Point % of Total Sales Required Sales to Break-Even Margin of Safety 14,257 66% 9.362 7,124 14,257 34% 4,895 3,725 00:02 DOO + 35%. Bobs Bicycles Student A01 22MAR - Saved o File Home Insert Draw Formulas Data Review View A 123 2Y- Sensitivity fx B D E F G H 1 J L M Direct Material Variances Direct Labor Variances Overall 1 2 3 4 5 6 7 8 9 10 10 11 12 AP (average) AQ $14.52 77,559 AP XAQ $1,126.246 DL Rate Variance $ 40,420 U Total $ Steel: Actual #units x SQ = EQ AP AQ SP EQ Actual DM Expenditures Budgeted DM Expenditures $ 2,591,693 $2,447,298 Total DM Variance $ 144,395 U AP (Average) AQ SP EQ $15.73 63,767 $15.00 63,394 AP X AQ AQ x SP SP X EQ $ 1,002,772 $ 956,498 $ 950,910 Steel Price Variance Steel Quantity Variance $ 46,274 $ 5,588 U U Total Steel Variance $ 51,862 U AP AQ SP EQ 34,427 $2.00 34,148 AP X AQ AQ X SP SP X EQ $ 85.393 $ 68,854 $ 68,296 Rbr. Handles Price Varianter. Handles Quantity Variance $ 16,539 $ 558 U Total Rubber Handles Variance $ 17,097 U AP AQ SP EQ AP x AQ AQ X SP SP X EQ Seat Price Variance Seat Quantity Variance 16 17 18 19 Rubber 20 Handles: 21 22 23 24 25 20 26 27 28 29 29 Seat: 30 31 32 32 22 33 21 34 25 35 26 36 37 38 39 Chain: 40 41 42 43 44 45 * 46 47 48 49 Tires: 50 ou 51 52 WA 53 0 54 34 55 09 ES 00 57 50 58 50 59 Gear 60 Shift Total Seat Variance $ 7,711 F AP AQ SP EQ AP X AQ AQ x SP SP X EQ Chain Price Variance Chain Quantity Variance Total Chain Variance $ 12,965 U AP AQ SP EQ AP X AQ AQ x SP SP X EQ Tires Price Variance Tires Quantity Variance Total Tires Variance $ 27,993 U AP AQ SP lol AP XAQ AQ X SP SP X EQ Gear Shift Price Variance Gear Shift Quantity Variance 61 62 63 64 65 66 67 68 69 09 70 71 72 14 73 ZA 14 25 75 76 Total Gear Shift Variance $ 5,076 U AQ SP AP EQ Brake Unit: AP X AQ AQ X SP SP X EQ Brake Price Variance Brake Quantity Variance Total Brake Variance $ 19,565 U AP AQ SP EQ AP X AQ AQ X SP SP X EQ 77 70 78 79 Specialty an 80 Handles: 81 82 83 84 85 86 87 Sp. Handles Price Varianc&p. Handles Quantity Variance Total Specialty Handles Variance $ 4,314 + Basic Information Direct Materials Variances Revenue Variance Pro AP AQ SP EQ AP X AQ AQ x SP SP X EQ Sp. Seat Price Variance Sp. Seat Quantity Variance Total Specialty Seat Variance $ 32,890 89 Specialty 90 Seat: 91 92 93 94 95 96 97 98 99 Expanded 100 Shift: 101 102 103 104 105 106 107 108 109 AP AQ SP EQ AP X AQ AQ x SP SP x EQ Exp. Shift Price Variance Exp. Shift Quantity Variance Total Expanded Shift Variance $ 19,656 U A B D E F 1 2 Basic Deluxe Basic Deluxe Basic Deluxe 3 4. Sales Variances (Revenue) 5 6 Actual Sales Flexible Budget Sales 7 8 9 Actual Volume Average Selling Price Actual Volume Standard Selling Price 17,074 ???? $2,475,730.00 8,356 ???? $2,966,380.00 17,074 $150.00 $2,561,100.00 8,356 $350.00 $2,924,600.00 Sales Price Variance $85,370.00 $41,780.00 Unfavourable Favourable $43,590.00 Unfavourable 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 $5,442,110.00 $47,942.30 Unfavourable Provide a reason for the price and quantity variance for each of the bike models. How might the variances of one model impact the variance of the other model? Policies? Strategies? Market Environment? 28 29 30 31 32 33 34 35 Basic Deluxe Basic Deluxe Static Budget Sales Budgeted Volume X Standard Selling Price 16,486 $150.00 $2,472,964.80 8,620 $350.00 $3,017,087.50 Sales Quantity Variance $88,135.20 $92,487.50 Favourable Unfavourable $4,352.30 Unfavourable $5,490,052.30