PROBLEM - PART TWO SOLUTION SHEET FOR INTERFACE BETWEEN BUDGETS & VARIANCES MASTER (STATIC) BUDGE ACTUAL RESULTS 4370 Total Variance FLEXIBLE BUDGET 550 MASTER (STATIC) BUDGET ACTUAL RESULTS Flexible Budget Variance Sales Volume Variance 30 U 2750 F_ N/A 6000 F Cost Selling Price Sales Mix Sales Quantity Variance Variance Variance Variance 1540 U 1510 F N/A NIA Market Direct Overhead Market Costs Costs Share Size 100U 1440 U_ 1230 F_ 200 F Materials Labor Variable Fixed 125U 225 U COMPREHENSIVE PROBLEM - PART TWO Price Efficiency REQUIRED: (1) Determine the variances (both $ amount 1640U 200F and For U for the bold-lettered variances. Enter Price Efficiency the variance in the blank space. 1230 80 U Spending Efficiency 200F N/A Spending VolumeIN-HOUSE INCOME STATEMENTS (reasonable rounding off is OK) Actual Results Flexible Budget Master (Static) Budget Detail Summary Detail Summary Detail Summary Revenue 68750 Revenue 66000 Revenue 60000 COGS COGS COGS Materials 1750 Materials 1650 Materials 500x2x1.5 1500 Labor 34440 Labor 33000 Labor 500x3x20 30000 Variable OH 11890 Variable OH 13200 Variable OH 12k/1500x8 12000 Total Var. 48080 Total Var. 47850 Total Var. 43500 Contr. Margin 20670 Contr. Margin 18150 Contr. Margin 16500 Less: Fixed OH 7800 Less: Fixed OH 8000 Less: Fixed OH 8000 Net Income 12870 Net Income 10150 Net Income 8500