Project++Flex+Budget+Var+Instructions+Fall+2010 -...

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ACC 2362 Managerial Accounting - Project Instructions Optima Company used standard costing to construct its 2011 comprehensive master budget.  At the end of the year  Optima actually produced 198,000 units.  The following information was based on the actual production of those units. They purchased and used 589,000 pieces of plastic at a cost of $39 each.  The used 685,500 direct labor hours and the  workers were paid $25.00 per hour.  Actual cost of overhead was $9,750,000, of which $6,500,000 was attributed to  fixed overhead. Optima would like to evaluate the 2011 performance against the plan.  In order to do this, you have been asked to  prepare a flexible budget and a performance report for management.   Remember, a meaningful performance report is  one that compares the actual costs at the actual level of activity to the budgeted costs at the actual level of activity. 1. Complete the data needed for flexible budget and variance analysis that will be used in the calculation of  the flexible budget and the performance report.  The information should come from the comprehensive  master budget project and the information provided above. 2. Prepare an “after the fact” flexible budget and calculate the total budget variances  for Direct Materials,  Direct Labor and Overhead. 3.
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This note was uploaded on 09/29/2011 for the course ACC 2362 taught by Professor Thoede during the Fall '07 term at Texas State.

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Project++Flex+Budget+Var+Instructions+Fall+2010 -...

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