| 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 |
DEE9175
ellington_hca16_E7_21_start.xlsx
