ACCT 621 Assignment #2 Due December 18 on Moodle Submission Instructions: Typed single spaced using word for analysis and explanations . Use MS excel to calculate variance, and submit the calculation file on moodle Use moodle submission link Background Information You are the VP Finance of XM, the leading producer of refrigeration equipment for the domestic market. XM sells all of its products to a large retail chain. Based on the Actual vs. Budget Report (Excel file), XM's CEO was concerned about the significant shortfall in profits of $8,550 and asked you for more information Requirements: 1. To revise the Actual vs. Budget Report using flexible budget. To provide commons on the overall profitability of XM to the CEO. 2. To calculate all following variances, and to indicate whether the variance is favorable or unfavorable, provide your interpretations and explanations to the CEO on the meanings of those variances. Materials price variance Materials quantity variance Labour price variance Labour quantity variance Overhead price variance Overhead quantity variance . . Wra Format Painter Clipboard Font Mers fs Gross margin Alignment ASST #2 Excel File (7) 2. A B D 1 XM Actual vs. Budget Report E 2. Actual Budget Variance 3 Sales units 1000 1050 -50 4 Price $ 700 $ 700 5 Revenue $700,000 $735,000 -35,000 6 Cost of Production 7 Material per unit $ 250 8 Total materials cost $245,700 $262,500 -16,800 9 Labour per unit $ 150 10 Total labor cost 152,250 157,500 -5,250 11 Manufacturing overhead per unit $ 70 12 Total manufacturing overhead cost 75,600 73,500 2,100 13 Total manufacturing cost $473,550 $493,500 -19,950 14 Gross margin $226,450 $ 241,500 -15,050 15 Selling and admin. Expense $183,500 $190,000 -6,500 16 Not operating profit $ 42,950 $ 51,500 -8,550 17 18 19 20 21 1