You are working with a manufacturer under Boardz Co. This company creates Board game tables from scratch.

They had the following forecasted/budgeted for the full 2020 year:

Sales in dollars $750,000

Selling price per unit $750

lumber pieces used per set 3

Cost for one unit of lumber $2.5

DLH per unit, $25 per 1.0

At the end on 2020, they knew the following:

Sales in dollars $625,000

Selling price per unit $500

lumber pieces used (total) 5,000

Cost for one unit of lumber $2

DL$ paid total, $24 per hour $100,000

Formulas are:

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

a. Boardz forgot to indicate quantity sold! Help! What is the budgeted Q sold?

b. Boardz does not know actual quantity sold! Help! What is the actual quantity sold?

c. 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. What Revenue's flexible budget?

d. Boardz 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?

e. The materials used for each set are classified as Direct. For this expense,

please indicate the price variance, efficiency variance, and flexible budget variance. Remember to indicate favorable or unfavorable and why.

f) Was Boardz efficient or inefficient compared to budget in direct materials usage?