X Company has the following cost drivers:

Direct labor $15.80q..actual=$134,730

Indirect labor $8,200+1.60q.actual=$19,860

Utilities $6,400+.80qactual=$14,570

Supplies $1,100+.40qactual=$4,980

Equipment Depreciation $23,000+3.70q..actual=54,080

Factory Rent $8,400.actual=$8,700

Property Taxes $2,100.actual=$2,100

Factory Administration $11,700+1.90q..actual=$26,470

Part A:

Assume the Companys budgeted activity level was 8,150 units (q) and they expect to sell units at $40 per unit. Their actual activity level was 8,400 units and they ended up selling these units for $38 per unit. Please complete the following flexible budget and identify all Activity and Revenue/Spending Variances. Also, indicate which variance is favorable (F) and unfavorable (U). Planning Activity Flexible Rev/Spending Actual

Budget Variance Budget Variance Results

Sales DL, IDL, Util, supplies, equip, rent, taxes, admin

Net Income

Part B:

Assume the Companys budgeted activity level was 8,150 units (q) and they expect to sell units at $36 per unit. Their actual activity level was 7,700 units and they ended up selling these units for $43 per unit. Please complete the following flexible budget and identify all Activity and Revenue/Spending Variances. Also, indicate which variance is favorable (F) and unfavorable (U).

Planning Activity Flexible Rev/Spending Actual

Budget Variance Budget Variance Results

Sales DL, IDL, Util, supplies, equip, rent, taxes, admin