Reference no: EM132558987

Below are the financial data of ADVANCE Machinery company.

                                     Master Budget                     Actuals

Units                              750                                800

Sales                             367 500                      372 000

Materials                             97 500                   108 000

Direct Labor                        108 750                    112 000

Variable selling costs               15 000                     24 000

Fixed factory overheads              90 000                  85 000

Administrative overheads            40 000                   50 000

Required:

Question 1: Perform variance analysis in a proper reporting format, in traditional approach

Question 2: Prepare flexible budget and perform variance analysis,

Question 3: explain important variances and possible problems if foreseen

Question 4: Perform financial position analysis using CVP approach, give recommendations for profitability improvement

Question 5: Explain difference between flexible budget and standard costing approach application and its management roles.