The Sparkly Corporation has the following budget and actual results.
|
Budgeted data: |
|
|
Unit sales |
$30,000.00 |
|
Unit production |
$30,000.00 |
|
Fixed overhead |
|
|
Supervision |
54,000 |
|
Depreciation |
60,000 |
|
Rent |
30,000 |
|
Variable costs per unit |
|
|
Direct materials |
18 |
|
Direct labor |
25 |
|
Supplies |
0.25 |
|
Indirect labor |
1.2 |
|
Electricity |
0.15 |
|
Actual results: |
|
|
Unit sales |
33,000 |
|
Unit production |
36,000 |
|
Fixed overhead |
53,550 |
|
Supervision |
60,000 |
|
Depreciation |
30,000 |
|
Variable costs |
|
|
Direct materials |
642,000 |
|
Direct labor |
960,000 |
|
Supplies |
7,500 |
|
Indirect labor |
30,000 |
|
Electricity |
4,500 |
Required:
a. Prepare a performance report for all costs, showing static budget variances (indicate F or U).
b. Prepare a performance report for all costs, showing flexible budget variances (indicate F or U).