Question 1 - Flexible Budgeting
The master budget at Windsor, Inc. Last period called for sales of 90,000 units at $36 each. The costs were estimated to be $15 variable per unit and $900,000 fixed. During the period, actual production and actual sales were 92,000 per unit. Actual fixed costs were $900,000.
Prepare a flexible budget for Windsor.
Question 2 - Sales Activity Variances
Refer to the data in Question 1. Prepare a sales activity variance analysis.
Question 3 - Variable Cost Variances
The standard direct cost per unit for a company was $7 (=$28 per hour X 0.25 per unit). During the period, actual direct labor costs amounted to $45,000, 1,600 labor-hours were worked, and 5,600 units were produced.
Compute the direct labor price and efficiency variances for the period.
Question 4 - Fixed Cost Variances
Information on Carney Company's fixed overhead costs follows:
Overhead applied $360,000
Actual overhead 385,500
Budgeted overhead 369,000
What are the fixed overhead price and production volume variances?