Assume the companys budgeted activity level was 8000 units

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Reference no: EM13581050

X Company has the following cost drivers:

Direct labor $15.80q..........................actual=$134,730

Indirect labor $8,200+1.60q................actual=$19,860

Utilities $6,400+.80q..................actual=$14,570

Supplies $1,100+.40q..................actual=$4,980

Equipment Depreciation $23,000+3.70q..............actual=54,080

Factory Rent $8,400............................actual=$8,700

Property Taxes $2,100............................actual=$2,100

Factory Administration $11,700+1.90q..............actual=$26,470

Assume the Company's budgeted activity level was 8,000 units ("q") and they expect to sell units at $40 per unit. Their actual activity level was 8,400 units and they ended up selling these units for $38 per unit. Please complete the following flexible budget and identify all Activity and Revenue/Spending Variances. Also, indicate which variance is favorable (F) and unfavorable (U).

Reference no: EM13581050

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