Variances and Deviations from Flexible Budget

Month	Total Variance	% Deviation Total Variance	Price Variance	% Deviation Price Variance	Usage Variance	% Deviation Usage Variance
January	1,793.23 F	1.42%	3,683.23 F	2.88%	1,890.00 U	1.50%
February	1,620.02 F	1.35%	3,360.02 F	2.76%	1,740.00 U	1.45%
March	1,702.76 F	1.52%	3,270.76 F	2.88%	1,568.00 U	1.40%
April	4,348.80 U	4.83%	748.80 U	0.80%	3,600.00 U	4.00%
May	3,233.90 F	4.43%	416.10 U	0.60%	3,650.00 F	5.00%
June	1,733.81 U	2.67%	791.31 U	1.20%	942.50 U	1.45%
July	778.36 F	1.34%	1,648.36 F	2.80%	870.00 U	1.50%
August	862.17 F	1.39%	1,761.17 F	2.80%	899.00 U	1.45%
September	3,506.25 F	4.68%	5,381.25 F	7.00%	1,875.00 U	2.50%
October	3,691.46 F	4.29%	6,271.46 F	7.08%	2,580.00 U	3.00%
November	335.58 F	0.33%	2,885.58 F	2.76%	2,550.00 U	2.50%
December	5,597.92 F	4.74%	3,237.92 F	2.80%	2,360.00 F	2.00%
Annual	17,039.05 F	1.57%	29,543.55 F	2.69%	12,504.50 U	1.15%

Significant Events

Month	Events	Instructions: (1) Indicate whether and how the event would impact the Materials Price or Materials Usage Variance by placing an X in the appropriate bracketed area. (2) If you determined the event would have affected the variance(s), also note whether corrective action could be taken. (3) In the last column indicate which months were affected by the event. Be careful so that it is clear which event you are referring to when the month has multiple events.
		Affect the Price Variance?	Affect Usage Variance?	Is There a Corrective Action?	Indicate the Months Affected
January	The company predicted that the price of materials would increase so the purchasing manager decided to buy several months of materials before the price increase.	[Favorable] [Unfavorable] [No Effect]	[Favorable] [Unfavorable] [No Effect]	[Yes] [No]
February	Employees were paid their annual bonus in February.	[Favorable] [Unfavorable] [No Effect]	[Favorable] [Unfavorable] [No Effect]	[Yes] [No]
March	A batch of supplies were received that were of slightly lower quality. The production department was able to use them slowly along with good supplies so that the company did not need to write off the inventory or make returns.	[Favorable] [Unfavorable] [No Effect]	[Favorable] [Unfavorable] [No Effect]	[Yes] [No]
April	In April the clerk in accounting made an input error and as a result records showed that that more material than actual, was added to the production process. Supplies are usually delivered by rail but there was a shutdown in the railroad and now supplies must come by truck for 2 months, starting in April, which is more expensive.	[Favorable] [Unfavorable] [No Effect] [Favorable] [Unfavorable] [No Effect]	[Favorable] [Unfavorable] [No Effect] [Favorable] [Unfavorable] [No Effect]	[Yes] [No] [Yes] [No]