Question

number 1, with explaination please!

Recast the following budget so it is a better basis of comparison. Variance FIU 300 F Budget Actual Sales in units 1,200 1,500 Cost of Goods Sold Depreciation (straight-line) $5,000 $5,000 Direct labore $108,000 $117,000 Direct materials $72,000 $99,000 Plant manager's salary $40,000 $40,000 Operating Expenses (SG&A) Advertising expense $12,000 $10,000 Packaging expense $36,000 $40,500 Sales salary expense $40,000 $40,500 $0 $9,0000 $27,000 $0 U F $2,000 $4,500 $500 U Actual 1,500 Variance FIU 0 Budget Sales in units 1,500 Variable Costs Direct materials $135,000 Direct labor Packaging expense Fixed Costs Plant manager's salary Depreciation (straight-line) Sales salary expense Advertising expense XX? XX XX XXX X X X XXX

Answer 1

		Budget	Workings	Actual	Variance	F/U
Sales in units		1500		1500	-	-
Variable costs
Direct Materials		$   90,000.00	($ 72000 x 1500/1200)	$   99,000.00	$   9,000.00	U
Direct Labor		$ 135,000.00	($ 108000 x 1500/1200)	$ 117,000.00	$ 18,000.00	F
Packaging expense		$   45,000.00	($ 36000 x 1500/1200)	$   40,500.00	$   4,500.00	F
Fixed costs
Plant manager's salary		$   40,000.00	(Doesn't vary with units)	$   40,000.00	$               -	-
Depreciation		$     5,000.00	(Doesn't vary with units)	$     5,000.00	$               -	-
Sales salary expense		$   40,000.00	(Doesn't vary with units)	$   40,500.00	$      500.00	U
Advertising expense		$   12,000.00	(Doesn't vary with units)	$   10,000.00	$   2,000.00	F

Is it okay?