Static Budget vs. Flexible Budget The production supervisor of the Painting Department for Whitley Company agreed to the

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Static Budget vs. Flexible Budget
The production supervisor of the Painting Department for WhitleyCompany agreed to the following monthly static budget for theupcoming year:
The actual amount spent and the actual units produced in thefirst three months in the Painting Department were as follows:
The Painting Department supervisor has been very pleased withthis performance, since actual expenditures have been less than themonthly budget. However, the plant manager believes that thebudget should not remain fixed for every month but should "flex" oradjust to the volume of work that is produced in the PaintingDepartment. Additional budget information for the PaintingDepartment is as follows:
Question Content Area
a. Prepare a flexible budget for theactual units produced for January, February, and March in thePainting Department. Assume depreciation is a fixedcost. Enter all amounts as positive numbers. Ifrequired, round per unit amounts to the nearest cent.
Question Content Area
b. Compare the flexible budget with theactual expenditures for the first three months.
Excess of budget over actual costExcess of actual cost overbudget
What does this comparison suggest?
YesNo
YesNo
Direct Materials Purchases Budget
Your Pie Inc. has determined from its productionbudget the following estimated production volumes for 12'' and16'' frozen pizzas for September:
There are three direct materials used in producing the two typesof pizza. The quantities of direct materials expected to be usedfor each pizza are as follows:
In addition, Zippy's has determined the following informationabout each material:
Prepare September's direct materials purchases budget for YourPie Inc.
Less desired inventory, September 30Plus desired inventory,September 1Plus desired inventory, September 30
Less estimated inventory, September 1Less estimated inventory,September 30Plus estimated inventory, September 1
Direct Materials Purchases Budget
Soda Bottling Enterprises is the largestbottler in Western Europe. The company purchases Brand 1 and Brand2 concentrate from The Soda Company, dilutesand mixes the concentrate with carbonated water, and then fills theblended beverage into cans or plastic two-liter bottles. Assumethat the estimated production for Brand 1 and Brand 2 two-literbottles at the Wakefield, UK, bottling plant are as follows for themonth of October:
In addition, assume that the concentrate costs $88 per pound forboth Brand 1 and Brand 2. The concentrate is used at a rate of 0.10pound per 100 liters of carbonated water in blending Brand 1 and ata rate of 0.05 pound per 100 liters of carbonated water in blendingBrand 2. Assume that two-liter bottles cost $0.07 per bottle andcarbonated water costs $0.05 per liter.
Prepare a direct materials purchases budget for October,assuming no changes between beginning and ending inventories forall three materials. Enter all amounts as positivenumbers.