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November 26, 2020

Original BudgetActualFlexible Budget Units Produced (in units)10

Business & Finance>Accounting

Original BudgetActualFlexible Budget Units Produced (in units)10,00012,000? Materials used (kg)400700? Material cost ($)8,000See purchases? Direct Labour (hours)35,00046,102? Direct Labour ($)385,000507,080? Variable Overhead ($)350,000419,161? Fixed Overhead ($)160,000161,000?Other InformationOverhead is Allocated on Direct Labour HoursDuring the year, 800 kg of materials were purchased for $5,000Beginning Inventory: noneEnding Inventory: 100kgRequired: Calculate the flexible budget amounts for all items.Calculate the following variances Material Rate Material Efficiency Labour Price Labour Efficiency Variable Overhaed Rate Variable Overhead Efficiency Fixed Overhead Rate Fixed Overhead Production Volume Assume that the Material, Labour and Variable Overhead variances are inter-related. What is the most likely single cause of these variances. Briefly explain your answer.

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