Copy of Flexible Budget Spreadsheet0

Copy of Flexible Budget Spreadsheet0 - VARIABLE COSTS. THE...

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Flexible Budget Month ended January 31, 2008 Flexible Budget Flex Budget Flex Budget Flex Budget Variable Total Fixed Unit sales of Unit sales of Unit sales of Cost per unit Cost 10,000 12,000 14,000 Sales $10.00 100,000 120,000 140,000 Variable Costs: Direct materials 1.00 10,000 12,000 14,000 Direct labor 1.50 15,000 18,000 21,000 Factory supplies 0.20 2,000 2,400 2,800 Utilities 0.30 3,000 3,600 4,200 Sales commissions 0.90 9,000 10,800 12,600 Shipping expenses 0.40 4,000 4,800 5,600 office supplies 0.50 5,000 6,000 7,000 Total Variable costs $4.80 48,000 57,600 67,200 Contribution margin $5.20 $52,000 $62,400 $72,800 Fixed Costs: Depreciation: machinery 8000 8000 8000 8000 Supervisory salaries 11000 11000 11000 11000 Insurance expense 1000 1000 1000 1000 Drepeciation: office equipment 7000 7000 7000 7000 Administrative Salaries 13000 13000 13000 13000 Total Fixed Costs 40000 40000 40000 40000 Income from operations $12,000 $22,400 $32,800 NOTICE THAT THE SALES LEVEL CHANGES BUT THE COST PER UNIT DOES NOT CHANGE IN THE
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Unformatted text preview: VARIABLE COSTS. THE FIXED COSTS OF COURSE DO NOT CHANGE. A FLEXIBLE BUDGET FINE LINES THE ACTUAL BUDGETED COSTS A EACH LEVEL OF SALES ACTIVITY. Flex Budget Flexible Budget Performance Report Unit sales of Actual Month ended January 31, 2008 12000 Results Variance Sales $120,000 $125,000 $5,000 Variable Costs: Direct materials 12,000 13000 1,000 Direct labor 18,000 20000 2,000 Factory supplies 2,400 2100 (300) Utilities 3,600 4000 400 Sales commissions 10,800 10800- Shipping expenses 4,800 4300 (500) office supplies 6,000 5200 (800) Total Variable costs $57,600 $59,400 $1,800 Contribution margin $62,400 $65,600 $3,200 Fixed Costs: Depreciation: machinery 8,000 8,000 - Supervisory salaries 11,000 11,000 - Insurance expense 1,000 1,200 200 Drepeciation: office equipment 7,000 7,000 - Administrative Salaries 13,000 13,000 - Total Fixed Costs $40,000 40,200 200 - Income from operations $22,400 $25,400 $3,000...
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This note was uploaded on 02/01/2011 for the course ACCT 203 taught by Professor Hylton during the Summer '08 term at George Mason.

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Copy of Flexible Budget Spreadsheet0 - VARIABLE COSTS. THE...

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