Required:
1. Prepare a flexible budget like exhibit 12.4 for the activity of moving materials, but you will use the number of moves as the activity driver.
	Use	60,000	moves and	80,000	moves
2. What if the actual costs incurred were the amounts below for 60,000 moves.
Prepare an activity-based performance report like exhibit 12.6 to present a comparison of actual to budget with a budget variance determine.
You must also designate U or F if there is a variance. If there is no variance you can leave the designation blank, since the variance of zero is not U or F. You must use the IF Function to designate U or F to earn credit.
	Activity	Actual cost
	Salaries	$1,290,000
	Leases	144,000
	Crates	118,000
	Fuel	24,000
3. Explain what type of value that the moving activity provides the company. Provided a recommendation on what the company should attempt to do with this activity.

Part 3 Moving Inc. wants to develop an activity flexible budget for the activity of moving materials. Moving Inc. uses forklifts to move materials from receiving to storeroom and then to production. The forklifts are also used to move material from storeroom to the production area, which the company considers one move. Crates are used to store the parts and are emptied only when used in production. The crates are disposed of after a move from receiving to the storeroom to production are complete. The forklifts are leased Forklift operators $18,000 per year per forklift $50,000 year average salary 25 $1.80 $3.60 10 Each crate costs Fuel costs for Forklift A gallon is used for Forklifts can make Forklifts are used Each operator works per gallon moves Moves per hour Days per year Hours per week 280 40 Part 3 Moving Inc. wants to develop an activity flexible budget for the activity of moving materials. Moving Inc. uses forklifts to move materials from receiving to storeroom and then to production. The forklifts are also used to move material from storeroom to the production area, which the company considers one move. Crates are used to store the parts and are emptied only when used in production. The crates are disposed of after a move from receiving to the storeroom to production are complete. The forklifts are leased Forklift operators $18,000 per year per forklift $50,000 year average salary 25 $1.80 $3.60 10 Each crate costs Fuel costs for Forklift A gallon is used for Forklifts can make Forklifts are used Each operator works per gallon moves Moves per hour Days per year Hours per week 280 40