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Please upload one file in Microsoft Word with the answers only. 1) CPA's Hardware uses a flexible budget to develop planning information for its...

Please upload one file in Microsoft Word with the answers only.

1) CPA’s Hardware uses a flexible budget to develop planning information for its warehouse operations. For 20X5, the company anticipated that it would have 96,000 sales units for 664 customer shipments. Average storage bin usage for various inventories was estimated to be 200 per day. The costs and cost drivers were determined to be as follows:

Item Fixed Variable Cost driver
Product handling $10,000 $1.25 per 100 units
Storage 3.00 per storage bin
Utilities 1,000 1.50 per 100 units
Shipping clerks 1,000 1.00 per shipment
Supplies 0.50 per shipment

During the year, the warehouse processed 90,000 units for 600 customer shipments. The workers used 225 storage bins on average each day to sort, store, and process goods for shipment. The actual costs for 20X5 were:

Item Actual costs
Product handling $10,900
Storage 465
Utilities 2,020
Shipping clerks 1,400
Supplies 340

Required:
a. Prepare a static budget for 20X5 with static-budget variances.
b. Prepare a flexible budget for 20X5 with flexible-budget variances.

Please upload one file in Microsoft Word with the answers only. 1) CPA’s Hardware uses a flexible budget to develop planning information for its warehouse operations. For 20X5, the company anticipated that it would have 96,000 sales units for 664 customer shipments. Average storage bin usage for various inventories was estimated to be 200 per day. The costs and cost drivers were determined to be as follows: Item Fixed Variable Cost driver Product handling $10,000 $1.25 per 100 units Storage 3.00 per storage bin Utilities 1,000 1.50 per 100 units Shipping clerks 1,000 1.00 per shipment Supplies 0.50 per shipment During the year, the warehouse processed 90,000 units for 600 customer shipments. The workers used 225 storage bins on average each day to sort, store, and process goods for shipment. The actual costs for 20X5 were: Item Actual costs Product handling $10,900 Storage 465 Utilities 2,020 Shipping clerks 1,400 Supplies 340 Required: a. Prepare a static budget for 20X5 with static-budget variances. b. Prepare a flexible budget for 20X5 with flexible-budget variances.
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