You are working with a manufacturer under Benchit Co. this company creates shop work benches from scratch. They had the following forecasted and budgeted for the full 2017 year: Sales in dollars Selling price per unit lumber pieces used per set Cost for one unit of lumber DLH per unit, $30 per 12,00,000 500 10 10 2.5 At the end on 2017, they knew the following: Sales in dollars Selling price per unit lumber pieces used (total) Cost for one unit of lumber DLS paid total, S25 per hour 15,00.000 600 22.500 6 1.25,000 1) Boards forgot to indicate quantity sold! Help! What is the budgeted Q sold 2 marks 2) Boards does not know actual quantity sold! Help! What is the actual quantity sold? 2 marks 3) You remember from your university days, there is a middle step between "static" budget and actual budget, and you first have to calculate the flexible revenue budget amount. 5 marks 4) Boards has no idea what to make of the differences between flexible budgeted and actual. What are the two main variances, and can you quantify? Are they Favorable? Unfavorable? Why? 10 marks 5) The materials boards uses for each set are classified as which type of expense? For this expense. please indicate the volume variance, price variance, efficiency variance, and flexible budget variance. 10 marks Remember to indicate favorable or unfavorable and why. Price Var. = - (Actual price - budgeted price) Actual Q Efficiency Var. = -(Actual Quantity used - flex Budgeted Quantity) Budgeted Price Flexible budget variance price + efficiency Flexible budget variance also actual total flex budget total 6) explain why Boards is efficient or inefficient (did they use their materials as efficiently as they budgeted?) 3 marks You are working with a manufacturer under Benchit Co. this company creates shop work benches from scratch. They had the following forecasted and budgeted for the full 2017 year: Sales in dollars Selling price per unit lumber pieces used per set Cost for one unit of lumber DLH per unit, $30 per 12,00,000 500 10 10 2.5 At the end on 2017, they knew the following: Sales in dollars Selling price per unit lumber pieces used (total) Cost for one unit of lumber DLS paid total, S25 per hour 15,00.000 600 22.500 6 1.25,000 1) Boards forgot to indicate quantity sold! Help! What is the budgeted Q sold 2 marks 2) Boards does not know actual quantity sold! Help! What is the actual quantity sold? 2 marks 3) You remember from your university days, there is a middle step between "static" budget and actual budget, and you first have to calculate the flexible revenue budget amount. 5 marks 4) Boards has no idea what to make of the differences between flexible budgeted and actual. What are the two main variances, and can you quantify? Are they Favorable? Unfavorable? Why? 10 marks 5) The materials boards uses for each set are classified as which type of expense? For this expense. please indicate the volume variance, price variance, efficiency variance, and flexible budget variance. 10 marks Remember to indicate favorable or unfavorable and why. Price Var. = - (Actual price - budgeted price) Actual Q Efficiency Var. = -(Actual Quantity used - flex Budgeted Quantity) Budgeted Price Flexible budget variance price + efficiency Flexible budget variance also actual total flex budget total 6) explain why Boards is efficient or inefficient (did they use their materials as efficiently as they budgeted?) 3 marks
