Question

can someone show me how to do the flexible budget

Correct! In the report below, in the third column, use Excel to compute a spending variance for 32 each cost. Then, in the last column, select F for favorable or Ufor unfavorable. Do not 33 select a letter if 0 variance SHADOW PRODUCTS, INC. Production Department Spending Variances For the Month Ended February 28 Actual Flexible Spending Variances Results Budget 42 Labor-hours 4,100 4,100 44 Direct labor 78,500 45 Indirect labor 12,000 46 Utilities 9.100 47 Supplies 3,200 48 Equipment depreciation 19,500 49 Factory rent 9,000 50 Property taxes 3,700 51 Factory administration 17,900 52 Total expenses 152,900 Correct! 53

Direct labor is 19.00 under variable cost per q not ####

Answer 1

Flexible budget =		4100 actual hrs*variable cost per q + fixed cost
			Actual	Flexible	Spending variance
			Results	Budget
labor-hours			4,100	4,100
Direct labor			78,500	77900	600	U
Indirect labor			12,000	11175	825	U
Utilities			9,100	9600	500	F
Supplies			3,200	3450	250	F
Equipment Depreciation			19,500	20000	500	F
Factory rent			9,000	9000	0	N
Property taxes			3,700	3500	200	U
Factory administration			17,900	17600	300	U
total expenses			152,900	152225	675	U