Question

Requirement 1: Complete the following flexible budget performance report using the numbers from the Business Assignment 2 Instructions file. The Board Company Flexible Budget Performance Report for the month ended August 31 Budgeted units of production: Actual units of production: Units of production variance в (A-B) F/U (A-C) FIU Α Actual Costs Incurred for 9.480 units Flexible Budget Based on 9.480 units Flexible Budget Variance Static Budget Based on 9.000 units Static Budget Variances Variable Costs: Direct materials Direct labor Variable overhead Subtotal Fixed costs: Fixed overhead Total

Answer 1

PAGE 1 Pure No REQUIREMENT -1 The BOARD COMPANY Flexible budget Performance Report for the mouth exted Auguse 31 Budget units Production 9000 units (AL Actual units production 9480 Units (B) -Units of production Variance 480 Units (A-B). Floible butt crible Static based on budget budget based 948n uwits JaranceA-B) by Gooounts budget variance! Actual Cost inwrred for 1 9480 units Variable Cost:- Direct rational 27,950 Direct labour 138750 Variable querhad 23,960 Subtotal 1 190660 fond Costs Cudowrhod 115390 26544 132720 24648 183912 1406 16030 (688) 6748 2500 l (126000 23,400 174,600 2750 12750 560 16060 116888 (1498) 111,020 I 4270 Total 1306050 1300800 5850 285,620 1 11690

RECOUREMENT 2 On basis of budget of 9000 units for unit Cost can be Calculated by dividing Cost with No. of Units. So for good thits fur unit Cost will be Cost of Material - $218 berunt ha Labour - $14 burunit Variable overhead - $2.6 burunit fixed Overhead - $12.35 hur unit So for 9400 units budget Cost will be Cost of Material (9480 x 2.8) - $26,544 labour (G480x14 - $ 132720 ariable ouwhead (9480 & 2.6. - $ 24648 hand overhead (9480 x 1233 - $ 116288 Fixed owerhead should be find in all cases, as but Unit Cost of hand overhead is changing, then may be Company has reasons to change fixed overhead , otherwise at hould be the same amount as of budget of Gwo ass. Note

EXPLANATIONS The Company had made a budget of $ 26544, but the actral Cast $2955 The Cost can be increased because of high poica of Material Wastage, more requirement. Direct rational Variance - 150 27950-26544 b 1400 unfavourette) Direct labour - The company had mate a budged of $132720, but actual Cost 138750 The Cost can be increased because of high labour price or Can be more labour imployd. Direct Labour Larance - 138350 - 132720 2 Gogo lunfavorable) Variable ourhead 24648 Budant al $ 23960, where actual cost is 23960 The Cost can be increased of more of vore abh exponses. Variable overhead Variance - auto 2396024648 2 688 / I woreble) food ahead IGEN IN NOTE]