y produces automobiles. It had budgeted sales and production of 10,000 cars for 2016 at a selling price of $5000 each. The company had budgeted the following costs for 2016 Standard Variable Manufacturing Costs per unit Fixed Manufacturing Overhead for year Selling and Admin Costs $4000 S3,000,000 Variable (per unit) Fixed (total for year) $1,000,000 The company actually sold 11,000 cars for $4800 each. Suppose that at the end of the year the financial results for the period are Variable Manufacturing Costs Variable Selling and Admin Costs Fixed Manufacturing Costs Fixed Selling and Admin Costs S46,000,000 S3,500,000 $2,000,000 $1,200,000 Required 1. What were budgeted profits for 2016 What were actual profits? What was the overall variance in profits? Did the company overall perform better or worse than expected? 2. Compute total master budgets and actuals for: (a) revenues (b) variable manufacturing costs c) variable selling and admin costs' (d) fixed manufacturing costs (e) fixed selling and admin costs Which line items were responsible for the overall profit variance? 3. Compute flexible budgets for: (a) revenues b) variable manufacturing costs c) variable selling and admin costs' (d) fixed manufacturing costs (e) fixed selling and admin costs Compute selling price and volume variances for revenues? 5. Compute volume variances and combined price/efficiency variances for variable costs 6. What is the volume variance for fixed manufacturing costs? 7. as two responsibility centers: production and sales. Production is responsible for efficiently purchasing for and producing the necessary amount of production. Sales is responsible for pricing and therefore the amount sold, as well as for controlling selling and administrative costs. Which combination of variances would you use to evaluate the two departments? Which variances would you view as uncontrollable? Each year a cash bonus of S1000 per person is paid to all the individuals in the department (production or sales) which performed most above expectations. Which department will receive the 2016 bonuses