Nic Saybin Enterprises Accounting Department collects all pertinent monthly operating data. Selected data is presented below for the current month. From the data provided, please provide Saybin Enterprises Management with a flexible budget analysis to see how costs were controlled. Actual Costs Incurred Activity Level (in units) 754,009 Variable Costs: Indirect Materials $328,897 Utilities $174,332 Fixed Costs: General & Administrative $237,985 Rent $135,500 Static Budget Activity Level (in units) 746,500 Variable Costs: Indirect Materials $325,640 Utilities $171,890 Fixed Costs: General & Administrative $244,908 Rent $135,000 Solution Hi, Please find the detailed answer as follows: Notes: Indirect Materials Per Unit = 325640/746500 = .436 Utilities = 171890/746500 = .230 Indirect Materials (Flexible) = 754009*.436 = $328916 Utilities (Flexible) = 754009*.230 = $173619 Thanks. .

1. Nic Saybin Enterprises Accounting Department collects all pertinent monthly operating data.
Selected data is presented below for the current month. From the data provided, please provide
Saybin Enterprises Management with a flexible budget analysis to see how costs were controlled.
Actual Costs Incurred
Activity Level (in units) 754,009
Variable Costs:
Indirect Materials $328,897
Utilities $174,332
Fixed Costs:
General & Administrative $237,985
Rent $135,500
Static Budget
Activity Level (in units) 746,500
Variable Costs:
Indirect Materials $325,640
Utilities $171,890
Fixed Costs:
General & Administrative $244,908
Rent $135,000
Solution
Hi,
Please find the detailed answer as follows:
Notes:
Indirect Materials Per Unit = 325640/746500 = .436
Utilities = 171890/746500 = .230
Indirect Materials (Flexible) = 754009*.436 = $328916

2. Utilities (Flexible) = 754009*.230 = $173619
Thanks.
Flexible Budget Peformance
Report
Flexible
Budget
Actual
Budget
Variance Favorable/Unfavorable
Units 7,54,009 7,54,009
Variable expenses:
Indirect materials $ 3,28,916 $ 3,28,897 $19 Favorable
Utilities 1,73,619 1,74,332 ($713) Unfavorable
Total variable costs $ 5,02,535 $ 5,03,229 ($694) Unfavorable
Fixed costs:
General and administrative $ 2,44,908 $ 2,37,985 $6,923 Favorable
Rent 1,35,000 1,35,000 $0
Total fixed costs $ 3,79,908 $ 3,72,985 $6,923 Favorable
Total costs $ 8,82,443 $ 8,76,214 $6,229 Favorable