updated 021119 TIDEWATER WRENCH COMPANY, LLC TRACKING COST VARIANCES & SALES VARIANCES INITIAL BUDGET INFORMATION Our initial plan was to make and sell 500 wrenches. We budgeted 2 lbs. of steel for each wrench, and expected to pay $1.50 per pound for the steel. We budgeted $20 per hour for labor, and expected it to take 3 hours to make each tool. Our initial plan was to sell the 500 wrenches for $120 each. We budgeted $8000 for insurance (fixed overhead), and we decided to use labor hours as the driver for allocating utilities costs (variable overhead). We expected to have $12,000 in utilities costs. ACTUAL RESULTS (1) We receive an order for 550 units at $125.00 each - (2) We purchase 1,400 lbs. of materials., paying 1,960.00, or $1.40 per lb. (3) We drawdown 1250 lbs. materials to produce 550 wrenches. (4) We drawdown (pay) $21.00 hr. for 1640 hours of labor to produce the 550 wrenches. (5) We incur variable overhead expenses (ex. - utilities) of $11,890.00. Variable overhead is applied using the budgeted Var. OH application rate. (6) Fixed overhead (insurance costs are $7,800. Fixed overhead is deemed to be a period expense. (7) We sell all 550 units at $125 each. : PART ONE: Required (use formatted statements shown on Sheet 2 of this EXCEL file) Prepare in good order in the space provided) a Master Budget Income Statement. - Prepare in good order in the space provided) a Flexible Budget Income Statement, based on actual production. Prepare in good order (in the space provided)an Actual Results Income Statement IN-HOUSE INCOME STATEMENTS (reasonable rounding off is OK) Actual Results Detail Summary Flexible Budget Detail Summary Master (Static) Budget Detail Summary Revenue Revenue Revenue I COGS Materials Labor Variable OH Total Var. Contr. Margin Less: Fixed OH Net Income ICOGS Materials Labor Variable OH Total Var. Contr. Margin Less: Fixed OH Net Income COGS Materials Labor Variable OH Total Var. Contr. Margin | Less: Fixed OH | Net Income