This week's discussion will focus on budgeting and the variances between actual results and budgeted results. Study the last tab of your assignment spreadsheet and complete a flexible budget on that last tab. Please complete this tab before submitting your assignment to the drop box so your instructor can see your flexible budget.

The president of Coopie Awards was analyzing the actual and budgeted results of operations for the current year. She noticed several favorable variances and, in a meeting gave accolades to the production manager. She also noticed that the sales variance was unfavorable and spent considerable time questioning the sales vice president. She stated "if production hadn't managed costs so well to cover for your lack of sales we would have racked up quite a large net loss for the year."

In a well-crafted email to the president address the following questions. Remember you are the controller writing to the president-be very aware of your tone and word choice.

Do you agree with the president? Please explain your point. Where were costs in line and where were they out of line? What could have been done to produce more favorable numbers? Why is a favorable variance not always good and an unfavorable variance not always bad?

Coopie Awards sold 43,000 brass plaques for the current year with the following results. In the discussion forum comment Hint: Preparing a flexible budget will help in analyzing the results. Please show the flexible budget on this tab. Budget based on 45000 unis Sales Revenue Direct Materials costs Direct Labor Costs Overhead Costs total dierct costs Selling and administrative cost operating income Actual Results $ 1,548,000 $ 498000 94800 126000 $ 718,800 $ 700000 $ 129,200 $ 1,575,000 518400 99000 126,000 743,400 729550 102,050 Variance $27,000 Unfavorable $20,400 Favorable $4,200 Favorable $0 $24,600 Favorable $29,550 Favorable ($27,150) Favorable scussion forum comment on Coopie Awards results. t on this tab