Budgeted sales (units) Budgeted sales price ($ per unit) Actual sales (units) Actual sales price ($...

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Budgeted sales (units) Budgeted sales price ($ per unit) Actual sales (units) Actual sales price ($ per unit) Planned production (units) Standard material price ($ per Ift) Toddler Preschool 3,200 800 $30 $85 3,300 1,200 $33 $80 3,000 1,050 $10 per Ift $25 per Ift 3 Ift/unit Standard materials usage (Ift per unit) Standard labor price ($ per hour) Standard labor usage (hours per unit) Actual production (units) Actual materials used Actual labor used Actual materials costs Actual labor costs Analysis A number of different analysts computed variances and compiled the following report: Sales price variance Sales mix variance Sales activity variance Materials spending variance Materials efficiency variance Materials activity variance Labor spending variance Labor efficiency variance Labor activity variance Required Part 1. Critique the analyses provided by the analysts. If there are errors, highlight which variances are in error, and provide the corrected analysis. Part 2. Assume that Flatland's policy is to investigate variances that are $2,000 or 5% of the master (i.e., static) budget (whichever threshold is lower). Which variances would you investigate (using your corrected analyses)? Part 3. Identify the two largest revenue variances and the two largest cost variances (using your corrected analyses). Identify at least two potential explanations for each of the four variances you identified. 1.5 Ift/unit $7 per hr 0.5 hrs/unit $9 per hr 1 hr/unit 3,400 1,100 5,200 Ift 3,300 Ift 1,600 hrs 1,200 hrs $57,200 $79,200 $10,400 $10,500 Toddler Preschool 9,900 U 6,000 U 9,000 F 25,500 F 12,000 U 8,500 F 5,200 U 3,300 F 10,000 F 1,000 F 9,000 U 3,750 U 1,800 F 300 F 1,700 F 900 U 450 U 400 U Budgeted sales (units) Budgeted sales price ($ per unit) Actual sales (units) Actual sales price ($ per unit) Planned production (units) Standard material price ($ per Ift) Toddler Preschool 3,200 800 $30 $85 3,300 1,200 $33 $80 3,000 1,050 $10 per Ift $25 per Ift 3 Ift/unit Standard materials usage (Ift per unit) Standard labor price ($ per hour) Standard labor usage (hours per unit) Actual production (units) Actual materials used Actual labor used Actual materials costs Actual labor costs Analysis A number of different analysts computed variances and compiled the following report: Sales price variance Sales mix variance Sales activity variance Materials spending variance Materials efficiency variance Materials activity variance Labor spending variance Labor efficiency variance Labor activity variance Required Part 1. Critique the analyses provided by the analysts. If there are errors, highlight which variances are in error, and provide the corrected analysis. Part 2. Assume that Flatland's policy is to investigate variances that are $2,000 or 5% of the master (i.e., static) budget (whichever threshold is lower). Which variances would you investigate (using your corrected analyses)? Part 3. Identify the two largest revenue variances and the two largest cost variances (using your corrected analyses). Identify at least two potential explanations for each of the four variances you identified. 1.5 Ift/unit $7 per hr 0.5 hrs/unit $9 per hr 1 hr/unit 3,400 1,100 5,200 Ift 3,300 Ift 1,600 hrs 1,200 hrs $57,200 $79,200 $10,400 $10,500 Toddler Preschool 9,900 U 6,000 U 9,000 F 25,500 F 12,000 U 8,500 F 5,200 U 3,300 F 10,000 F 1,000 F 9,000 U 3,750 U 1,800 F 300 F 1,700 F 900 U 450 U 400 U