INSTRUCTIONS
Flexible Budgets, Direct-Cost Variances, and Management Control
Flexible Budget
Sweeney Enterprises manufactures tires for the Formula I motor racing circuit. The company’s budgeted and actual amounts are as follows:
Budgeted for August 2017
Units to manufacture and sell 3,600
Variable cost per tire $71
Total fixed costs $55,000
Budgeted selling price per tire $114
Actual Results for August 2017
Units manufactured and sold 3,500
Selling price per tire $116
Total variable costs $280,000
Total fixed costs $51,000
Use the blue shaded areas on the ENTERANSWERS tab for inputs.
Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.
Requirement
Prepare a performance report that uses a flexible budget and a static budget.
a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted.
b. Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or U (unfavorable) when describing the variances.
c. For variances with a zero amount, make sure to enter the result of “=0” in the appropriate cell and leave the drop-down to identify the variance as either F or U blank.
Saving & Submitting Solution
1 Save file to desktop.
a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS
b. Save your solution in the folder you just created; add -solution-date to end of file name
2 Upload and submit your file to be graded.
a. Navigate back to the activity window – screen where you downloaded the initial spreadsheet
b. Click Choose button under step 3; locate the file you just saved and click Open
c. Click Upload button under step 3
d. Click Submit button under step 4
Viewing Results
1 Click on Results tab in MyAccountingLab
2 Click on the Assignment you were working on
3 Click on Project link; this will bring up your Score Card
4 Within Score Card window, click on Live Comments Report (lower right) to download spreadsheet with feedback
ENTERANSWERS
Prepare a performance report that uses a flexible budget and a static budget.
a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted.
b. Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or U (unfavorable) when describing the variances.
c. For variances with a zero amount, make sure to enter the result of “=0” in the appropriate cell and leave the drop-down to identify the variance as either F or U blank.
(Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.)
Actual Results Flexible-Budget Variance Flexible Budget Sales-Volume Variances Static Budget
Units sold
Revenues
Variable costs
Contribution margin
Fixed costs
Operating income
Sheet1
F
U