8/10/2019 Budgeting Activity Danshui

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ACCY 302 (Autrey) Individual Activity #2

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DANSHUI PLANT No. 2

Assignment

(Disregard the Assignment questions in the Danshui case.)

Prepare a revised Exhibit 3: August 2010 Preliminary Report on the Results of Operations.

The revised Report should include, at a minimum, the following columns:

the static budget

the flexible budget

the actual performance

the difference between the staticbudget and actual performance

the difference betweenflexiblebudget and actual performance

the difference betweenflexiblebudget and the staticbudget

In your revised Exhibit 3, indicate the cost driver used in your flexible budget, and show yourcomputations. If desired, you may submit a separate Excel file for the revised Exhibit 3.

Requirements

Attach a cover page preceding the computations, in which you answer the following questions:

1. Which budget is more informative about the Plants performance, and why?

2. Which budget is more informative about the Application process managers performance,and why?

3. Should Chen hold the Flash Memory manager accountable for the flexible budget? Why orwhy not?

Your evaluation must be no more than one typed page (12-point Times New Roman font with 1

margins) and may be in the form of bullet points instead of complete sentences. Include yourname, section number, and team number.

This assignment is worth 15 points, which are divided approximately evenly between the revisedexhibit and the question responses.