Fixed BudgetQTY 10000Frame Assembly QTY Price/unit TotalSteel Tubing 110,000 $30.00 3,300,000 Paint 1,250 $20.00 25,000 Labor 100,000 $15.00 1,500,000

Total Frame 4,825,000

Wheel AssemblyParts 10,000 $120.00 1,200,000

Labor 5,000 $13.00 65,000 Total Wheel 1,265,000

Final AssemblyParts 10,000 $350.00 3,500,000

Labor 7,500 $14.00 105,000 Total Final Assembly 3,605,000

Overhead CostsRent 250,000 Office Space 100,000 Depreciation 100,000 Other Costs Fixed 250,000 Other Costs Variable 2/3rd variable 500,000

Total Overhead 1,200,000

Total Annual Costs 10,895,000

Actual VarianceQty 10800Frame Assembly QTY Price/unit TotalSteel Tubing 113,400.00 $31.50 3,572,100 (272,100)Paint 1,375.00 $20.50 28,188 (3,188)Labor 100,200.00 $15.25 1,528,050 (28,050)

Total Frame 5,128,338 (303,338)

Wheel Assembly Parts 10,800.00 $122.00 1,317,600 (117,600)Rework Parts 25,000 (25,000)Labor 5,500.00 $13.50 74,250 (9,250)

Total Wheel 1,416,850 (151,850)

Final Assembly Parts 10,800.00 $367.00 3,963,600 (463,600)Rework Parts 45,000 (45,000)Labor 8,000.00 $14.50 116,000 (11,000)

Total Final Assembly 4,124,600 (519,600)

Overhead Costs Rent 250,000 - Office Space 100,000 - Depreciation 100,000 - Other Costs Fixed 250,000 Other Costs Variable 2/3rd variable 600,000 (100,000)

Total Overhead 1,300,000 (100,000)

Total Annual Costs 11,969,788 (1,074,788)

Frame AssemblySteel Tubing QTY Price/unit TotalBudgeted 110,000 $30.00 3,300,000 Actual 113,400.00 $31.50 3,572,100

(272,100) UQuantity Variance (102,000) UPrice Variance (170,100) U

Total Variance in Steel (272,100) UPaintBudgeted 1,250 $20.00 25,000 Actual 1,375.00 $20.50 28,188

(3,188) UQuantity Variance (2,500) UPrice Variance (688) U

Total Variance in Paint (3,188) U

LaborBudgeted 100,000 $15.00 1,500,000 Actual 100,200.00 $15.25 1,528,050

(28,050) UQuantity Variance (3,000) UPrice Variance (25,050) U

Total Variance in Labor (28,050) UWheel Assembly

PartsBudgeted 10,000 $120.00 1,200,000 Actual 10,800.00 $122.00 1,317,600

(117,600) UQuantity Variance (96,000) UPrice Variance (21,600) U

Total Variance in Parts (117,600) URework PartsBudgeted - $0.00 - Actual 25,000

(25,000) UQuantity Variance - Price Variance -

Total Variance in Rework Parts (25,000) ULaborBudgeted 5,000 $13.00 65,000 Actual 5,500.00 $13.50 74,250

(9,250) UQuantity Variance (6,500) UPrice Variance (2,750) U

Total Variance in Labor (9,250) UFinal AssemblyPartsBudgeted 10,000 $350.00 3,500,000 Actual 10,800.00 $367.00 3,963,600

(463,600)Quantity Variance (280,000) UPrice Variance (183,600) U

Total Variance in Parts (463,600) U

Rework PartsBudgeted - $0.00 - Actual 45,000

Total Variance in Rework Parts (45,000)

Labor

Budgeted 7,500 $14.00 105,000 Actual 8,000.00 $14.50 116,000

(11,000)Quantity Variance (7,000) UPrice Variance (4,000) U

Total Variance in Labor (11,000) U

Overhead varianceRent - Office Space - Depreciation - Other Costs Fixed - Other Costs Variable 2/3rd variable (100,000) U

Total Overhead (100,000) U

Flexible BudgetQty 10800 VarianceFrame Assembly QTY Price/unit Total

U Steel Tubing 118,800 $30.00 3,564,000 (8,100)U Paint 1,350 $20.00 27,000 (1,188)U Labor 108,000 $15.00 1,620,000 91,950 U Total Frame 5,211,000 82,663

- Wheel Assembly -

U Parts 10,800 $120.00 1,296,000 (21,600)U (25,000)U Labor 5,400 $13.00 70,200 (4,050)U Total Wheel 1,366,200 (50,650)

- Final Assembly -

U Parts 10,800 $350.00 3,780,000 (183,600)U - (45,000)U Labor 8,100 $14.00 113,400 (2,600)U Total Final Assembly 3,893,400 (231,200)

- Overhead Costs - Rent 250,000 - Office Space 100,000 - Depreciation 100,000 - Other Costs Fixed 250,000 -

U Other Costs Variable 2/3rd variable 540,000 (60,000)U Total Overhead 1,240,000 (60,000)

- U Total Annual Costs 11,710,600 (259,188)

Frame AssemblySteel Tubing QTY Price/unit TotalBudgeted 118,800 $30.00 3,564,000 Actual 113,400.00 $31.50 3,572,100

(8,100) UQuantity Variance 162,000 FPrice Variance (170,100) U

Total Variance in Steel (8,100) UPaintBudgeted 1,350 $20.00 27,000 Actual 1,375.00 $20.50 28,188

(1,188) UQuantity Variance (500) UPrice Variance (688) U

Total Variance in Paint (1,188) U

LaborBudgeted 108,000 $15.00 1,620,000 Actual 100,200.00 $15.25 1,528,050

91,950 UQuantity Variance 117,000 FPrice Variance (25,050) U

Total Variance in Labor 91,950 UWheel Assembly

PartsBudgeted 10,800 $120.00 1,296,000 Actual 10,800.00 $122.00 1,317,600

(21,600) UQuantity Variance - Price Variance (21,600)

Total Variance in Parts (21,600) URework PartsBudgeted - $0.00 - Actual 25,000

(25,000) UQuantity Variance - Price Variance -

Total Variance in Rework Parts (25,000) ULaborBudgeted 5,400 $13.00 70,200 Actual 5,500.00 $13.50 74,250

(4,050) UQuantity Variance (1,300) UPrice Variance (2,750) U

Total Variance in Labor (4,050) UFinal AssemblyPartsBudgeted 10,800 $350.00 3,780,000 Actual 10,800.00 $367.00 3,963,600

(183,600) UQuantity Variance - -Price Variance (183,600) U

Total Variance in Parts (183,600) U

Rework PartsBudgeted - $0.00 - Actual 45,000

Total Variance in Rework Parts (45,000) U

Labor

Budgeted 8,100 $14.00 113,400 Actual 8,000.00 $14.50 116,000

(2,600) UQuantity Variance 1,400 FPrice Variance (4,000) U

Total Variance in Labor (2,600) U

Overhead VarianceRent - Office Space - Depreciation - Other Costs Fixed - Other Costs Variable 2/3rd variable (60,000) U

Total Overhead (60,000) U

UUFF

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(284,188)