The Putnam Company produces engine parts for car manufacturers. A new accountant intern at Putnam has accidentally deleted the company’s variance analysis calculations for the year ended December 31, 2012. The following table is what remains of the data:

Required
1. Calculate all the required variances. (If your work is accurate, you will find that the total static- budget variance is $ 0.)
2. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit?
3. Review the variances you have calculated and discuss possible causes and potential problems. What is the important lesson learnedhere?

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Home Insert Page Layout Formulas Data iw View Performance Report, Year Ended December 31, 2012 Flexible-Budget Flexible Budget V Sales-Volume Actual RessVariances Variances Static Budget 4 Units sold 5 Revenues (sales) $716,000 6 Variable costs 7 Contribution margin 8 Fixed costs 9 Operating income 85.500 95,000 $389,500 209,000 180,500 95,000 85.500 485,000 231,000 145,500