● 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.