Variance project (3)-Word File Home Inoert Design Layout Reterences Malings Review View Tell me what you want to do The Special Widget division manufactures a product called SW for Global Corporation. The plant is a completely autonomous subsidiary that sells SWs to otber subsidiaries of Global Corporation, as well as outside companies. At the beginning of the ear the controller for Special Widget estimates sales and unit costs based on projections from past quarters' data. Projected sales for the quarter are 11,000 units and budgeted unit costs are as follows Unit Costs 530.00 $6.00 Direct costs Raw materials (10 kilograms at $3.00/kilogram Direct Labor (.5 hours at $12/hour) Total direct cost per unit $36.00 At the end of the quarter the budget and the actual resalts are compared. Usually the variances between the peojected budget and the actual results are negligible. However, this quarter the results are drastically differeet from the budget. Projections estimated $30,000 in gross profit, but actual gross profit shows a loss of $30,690. The general manager, who leads the profit center, received a variance report from production, but that didn't explain the entire dafference. Having no confidence in his controller, the general manager brought in the internal audit team from Global Corporation. As the internal audit team, the first report required should use variances to explain the entire difference in gross profit and interpret those variances to initiate further investigation or corrective action. Detailed information about production and sales is as follows Production Volume (units) Sales Volume (units) Sales Price per unit Direct labor hours Direct labor cost Raw Materials purchased (Iha) Raw Materials purchased (5) Raw Materials used (Ibs) Overbead expenses (S) 11,000 units 10,000 units $45.00 5,610 hours $66,759 120,000 lbs $384,000 115,500 Ibs 584,000 Budget 11,000 units 11,000 units $46.00 5,500 houn 366,000 110,000 Ihs $330,000 110,000 Ibs 580.000 The report sbould include O Type here to search DOLL Variance project (3)-Word File Home Inoert Design Layout Reterences Malings Review View Tell me what you want to do The Special Widget division manufactures a product called SW for Global Corporation. The plant is a completely autonomous subsidiary that sells SWs to otber subsidiaries of Global Corporation, as well as outside companies. At the beginning of the ear the controller for Special Widget estimates sales and unit costs based on projections from past quarters' data. Projected sales for the quarter are 11,000 units and budgeted unit costs are as follows Unit Costs 530.00 $6.00 Direct costs Raw materials (10 kilograms at $3.00/kilogram Direct Labor (.5 hours at $12/hour) Total direct cost per unit $36.00 At the end of the quarter the budget and the actual resalts are compared. Usually the variances between the peojected budget and the actual results are negligible. However, this quarter the results are drastically differeet from the budget. Projections estimated $30,000 in gross profit, but actual gross profit shows a loss of $30,690. The general manager, who leads the profit center, received a variance report from production, but that didn't explain the entire dafference. Having no confidence in his controller, the general manager brought in the internal audit team from Global Corporation. As the internal audit team, the first report required should use variances to explain the entire difference in gross profit and interpret those variances to initiate further investigation or corrective action. Detailed information about production and sales is as follows Production Volume (units) Sales Volume (units) Sales Price per unit Direct labor hours Direct labor cost Raw Materials purchased (Iha) Raw Materials purchased (5) Raw Materials used (Ibs) Overbead expenses (S) 11,000 units 10,000 units $45.00 5,610 hours $66,759 120,000 lbs $384,000 115,500 Ibs 584,000 Budget 11,000 units 11,000 units $46.00 5,500 houn 366,000 110,000 Ihs $330,000 110,000 Ibs 580.000 The report sbould include O Type here to search DOLL