Flexible Budgets and Standard Cost Systems

Using Excel to prepare a flexible budget performance report

Pilchuck Company manufactures tote bags and has provided the following information for September $2024$:

Use the blue shaded areas on the ENTERANSWERS tab for inputs.

Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the Instructions tab or if you type the numbers in$,$ you will be marked wrong.

Requirements

$1$ Prepare a flexible budget performance report, including the heading. Use the ABS function when calculating variances, and use the drop$-$down selections for F or U when describing the variances.

$2$ Calculate the Static Budget Variance for operating income, and label it as a F $($favorable$)$ or U $($unfavorable$)$ variance. $1$ Prepare a flexible budget performance report, including the heading. Use the ABS function when calculating variances, and use the dropdown selections for F or U when describing the variances. Note: start with calculating the budget lamounts, then calculate variances and choose appropriate descriptions of the variances. $($For variances with a zero amount, make sure to include the result of $"0"$ in the appropriate cell and leave the drop$-$down to identify the variance as either F or U blank.$)$

$($Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the Instructions tab or if you type the numbers in$,$ you will be marked wrong.$)2$ Calculate the Static Budget Variance for operating income, and label it as a F $($favorable$)$ or U $($unfavorable$)$ variance.

$($Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the Instructions tab or if you type the numbers in$,$ you will be marked wrong.$)$

HINTS

Cell $|$ Hint:

C$13$:C$14,$ D$12$:D$17,$ J$12$:J$17|$ Use cell references to the values in the data table provided at the top of the Instructions worksheet for calculations.

E$13$:E$17,$ H$13$:H$17,$ D$25|$ Use the function $=$ABS$()$ to calculate the variances.

F$13$:F$17,$ I$13$:$117|$ Do not choose the descriptions and leave cells blank if corresponding variances equalizero.