1 a) Using the information in the case and Tables 1-3, prepare a flexible budget for the...
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1 a) Using the information in the case and Tables 1-3, prepare a flexible budget for the Berkshire Toy Company for the year ended June 30, 2021. Analyze the company's total master (static) budget variance for the year. Compare the flexible and master (static) budgets and prepare a schedule showing the sales volume variance. Compare the actual results and the flexible budget, and prepare a schedule showing the flexible budget variance. Subdivide the flexible budget variances into the appropriate price (rate or spending) and efficiency (usage or quantity) variances for materials, labor, and variable overhead.
Units | Actual | Static | Variance | ||
555,556 | 500,000 | 55,556 | F | ||
Retail | 74,965 | 3,898,180 | 5,200,000 | 1,301,820 | U |
Internet | 335,429 | 15,429,734 | 14,400,000 | 1,029,734 | F |
Wholesale | 145,162 | 5,516,156 | 3,800,000 | 1,716,156 | F |
Total Revenue | 24,844,070 | 23,400,000 | 1,444,070 | ||
Direct Materials | 2,785,531 | 2,457,510 | 328,021 | U | |
Direct Labor | 11,193,264 | 9,900,000 | 1,293,264 | U | |
Variable Overhead | 2,544,897 | 1,851,300 | 693,597 | U | |
Variable Selling Expenses | 993,763 | 828,000 | 165,763 | U | |
Contribution Margin | 7,326,615 | 8,363,190 | |||
Fixed Overhead | 724,787 | 620,000 | 104,787 | U | |
Fixed Selling & Admin | 6,646,828 | 6705000 | 58,172 | F | |
Operating Income | $ (45,000.00) | $1,038,190.00 | |||
Units | Price | Revenue | |||
Retail | 100,000 | $52.00 | $5,200,000.00 | ||
Internet | 300,000 | $48.00 | $14,400,000.00 | ||
Wholesale | 100,000 | $38.00 | $3,800,000.00 | ||
Direct Materials | Std Quantity | Price/Cost | Cost per Unit | ||
Acrylic Pile Fabric | 0.02381 | Bolts | 42 | per bolt | $1.0000 |
10mm acrylic eyes | 2 | eyes | 0.25 | per eye | $0.5000 |
45mm Plastic Joints | 5 | joints | 0.15 | per joint | $0.7500 |
Polyester Fiber Fill | 0.9 | lbs | 2.45 | per lb | $2.2050 |
Woven Label | 1 | label | 0.05 | per label | $0.0500 |
Designer Box | 1 | box | 0.29 | per box | $0.2900 |
Accessories | Various | $0.1200 | |||
$4.9150 | |||||
Direct labor | |||||
Sewing | 0.4 | ||||
Stuffing & Cutting | 0.2 | ||||
Assembly | 0.2 | ||||
Dressing & Packaging | 0.1 | ||||
0.9 | 22 | $19.80 | |||
Variable Manuf. OH | 0.9 | DLH | 4.114 | Per DHL | $3.70 |
Fixed Manufacturing OH. | 0.9 | DLH | 2.17 | Per DHL | $1.95 |
$30.37 |
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