Level 1 Variances is the comparison of Actual results to the Static Budget

Level 2 Variances are the comparison of the Actual results to the Flexible budget.

Level 3 Variances are the level where direct material and direct labour variances are broken down between the Price and Efficiency(Quantity) variances.

Required items need to answered.

Number 1 and 2.

Required questions need to be answered is A) B) C)

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Summary of Required Items Required: A) Recalculate the cost of the MOH RFP and the expected revenue based on ABC and an expected 30% markup for profit. B) Create an Operating Budget for next year based on the information given. C) Based on information given 1) Calculate the appropriate Level 1 and 2 variances for Revenue, Direct Materials and Direct Labour. 2) Separately calculate the Level 3 variances for the Instructor's wage cost for the year 3) Suggest possible reasons as to why the individual variances in the Instructor's wages would occur and a recommendation regarding whom to go talk to for each variance based the employee list Chris has given you. (Exhibit 8) Summary of Required Items Required: A) Recalculate the cost of the MOH RFP and the expected revenue based on ABC and an expected 30% markup for profit. B) Create an Operating Budget for next year based on the information given. C) Based on information given 1) Calculate the appropriate Level 1 and 2 variances for Revenue, Direct Materials and Direct Labour. 2) Separately calculate the Level 3 variances for the Instructor's wage cost for the year 3) Suggest possible reasons as to why the individual variances in the Instructor's wages would occur and a recommendation regarding whom to go talk to for each variance based the employee list Chris has given you. (Exhibit 8)

Answer rating: 100% (QA)

A Recalculation of MOH RFP Cost and Expected Revenue Based on ABC 1 MOH RFP Cost Calculation Instruc... View the full answer