Complete and analyze a performace report One subunit of ABBA Company had followi
ID: 2504890 • Letter: C
Question
Complete and analyze a performace report
One subunit of ABBA Company had following financial results last month:
Actual
Flexible Budget
Flexible Budget Variance
(U or F)
% Variance (U of F)
Direct materials
$30,000
$28,000
Direct Labor
15,000
14,000
Indirect Labor
25,000
22,000
Utilities
12,000
10,000
Depreciation
25,000
25,000
Repairs and maintenance
4,000
5,000
Total
$111,000
$104,000
Requirements
1. Complete the performance evaluation report for this subunit (round to four decimals)
Actual
Flexible Budget
Flexible Budget Variance
(U or F)
% Variance (U of F)
Direct materials
$30,000
$28,000
Direct Labor
15,000
14,000
Indirect Labor
25,000
22,000
Utilities
12,000
10,000
Depreciation
25,000
25,000
Repairs and maintenance
4,000
5,000
Total
$111,000
$104,000
Explanation / Answer
Actual
Flexible Budget
Flexible Budget Variance
(U or F)
% Variance (U of F)
Direct materials
$30,000
$28,000
2000 U
(2000/28000)*100 = 7.1429% - U
Direct Labor
15,000
14,000
1000 U
(1000/14000)*100 = 7.1429% - U
Indirect Labor
25,000
22,000
3000 U
(3000/22000)*100 = 13.6363% - U
Utilities
12,000
10,000
2000 U
(2000/10000) * 100 = 20% - U
Depreciation
25,000
25,000
0 - Neither U nor F
0 - - Neither U nor F
Repairs and maintenance
4,000
5,000
1000 F
(1000/5000)*100 = 20% -F
Total
$111,000
$104,000
7000 U
(7000/104000)*100 = 6.7308% - U
Actual
Flexible Budget
Flexible Budget Variance
(U or F)
% Variance (U of F)
Direct materials
$30,000
$28,000
2000 U
(2000/28000)*100 = 7.1429% - U
Direct Labor
15,000
14,000
1000 U
(1000/14000)*100 = 7.1429% - U
Indirect Labor
25,000
22,000
3000 U
(3000/22000)*100 = 13.6363% - U
Utilities
12,000
10,000
2000 U
(2000/10000) * 100 = 20% - U
Depreciation
25,000
25,000
0 - Neither U nor F
0 - - Neither U nor F
Repairs and maintenance
4,000
5,000
1000 F
(1000/5000)*100 = 20% -F
Total
$111,000
$104,000
7000 U
(7000/104000)*100 = 6.7308% - U
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