Mile high

Topics: Computer, Times Roman, Price, Sales / Pages: 2 (429 words) / Published: Nov 14th, 2013
MILE HIGH CYCLES
Assignment
Compute the following variances for Mile High Cycles.

for sales: sales price variance  assume budgeted sales of 11,500 bicycles for total budgeted sales of $13,213,500 price volume variance  and actual sales of 14,000 bicycles for total actual sales of $13,986,000 for frame assembly: steel tubing price variance steel tubing efficiency variance steel tubing activity variance paint price variance paint efficiency variance paint activity variance labor price (a.k.a. rate) variance labor efficiency variance labor activity variance for wheel assembly: parts price variance parts efficiency variance parts activity variance rework spending variance labor price (a.k.a. rate) variance labor efficiency variance labor activity variance for final assembly: parts price variance parts efficiency variance parts activity variance rework spending variance labor price (a.k.a. rate) variance labor efficiency variance labor activity variance for production fixed overhead: rent spending variance office staff spending variance depreciation spending variance other costs spending variance (ignore note on Exhibit 1 of case and assume all fixed) - budget comprised of $525,000 for supervision and $225,000 for maintenance of machines used in production; actual comprised of $725,000 for supervision and $125,000 for maintenance of machines used in production production volume variance

In addition, assume that Bob Moyer has the following employees at Mile High Cycles:
Floyd Outlandiss, sales manager - responsible for bicycle pricing; sales to customers; timing of customer deliveries; advertising programs; customer complaints
Fitz Matoosh, production manager - responsible for choice of production levels; production scheduling; hiring and firing production employees/supervisors; determining acceptable range for grade of inputs;

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