● Consider units to be produced found in the production budget while completing this critical element .
Step 4 : Prepare a Selling Budget
● Complete Part G - Selling Expense Budget .
● Consider assumption 8 while completing this critical element : Sales commissions are 12 % of sales and are paid in the month of the sales . The sales manager ' s monthly salary is $ 3,750 per month .
Step 5 : General and Administrative Expense Budget
● Complete Part I - General and Admin Expense Budget .
● Consider assumption 7 while completing this critical element : Monthly general and administrative expenses include $ 12,000 administrative salaries and 0.9 % monthly interest on the long-term note payable .
Specifically , the following critical elements must be addressed when performing the Budget Variance Analysis using the budget variance worksheet .
The actual quantity of material used was 31,000 with an actual cost of $ 7.75 per unit . The actual labor hours were 33,000 with an actual rate per hours of $ 15 .
Step 1 : Complete A . Develop a variance analysis including a Budget Variance performance report and appropriate variances for materials , labor , and overhead .