Grenada Arts is a small business owned by Aquani Tamosi who creates art objects with sea themes.
Question:
Grenada Arts is a small business owned by Aquani Tamosi who creates art objects with sea themes. She sells the art object with sea themes. She sells the art objects through a local art gallery. Tamosi used the following data to prepare a master budget for
February:
Sales (units) 300u
Selling price per unit 85.00 $/u
Direct material cost per unit 8.30 $/u
Direct labor cost per unit . 27.00 $/u
Commission to art gallery- cost per unit 8.50 $/u
Fixed cost (total) 4,000 $
As it turns out , Tamosi was able to make and sell 310 art objects in February. Grenada Art's actual result of operations for February are as follow:
Sales Revenues 26,040$
Direct materials 3,062$
Direct Labor 8,290$
Commission to art galley 2,510$
Fixed cost 3,840$
REQUIRED:
Prepare a flexible budget for the production and sale of 310 art objects in February.
(include columns for Flexible, Actual, Variance and Unfavorable or Favorable)