Overview
You will prepare a Power Point Presentation for your Week Three Assignment. Prepare the Power Point Presentation using the following financial information:
ABC Corporation has the following information related to the static budget of 100,000 units.
Sales Price per Unit: $90
Direct Material per Unit: $30
Direct Labor per Unit: $15
Variable Manufacturing Overhead per Unit: $13
Fixed Manufacturing Overhead: $75,000
Variables Sales and Administrative Expenses per Unit: $3
Fixed Sales and Administrative Expenses: $25,000
Taxes: 30%
You are the accounting manager at ABC Corporation. You had prepared the budget based on 100,000 units being produced; however, 120,000 units were actually produced. Everyone that received the budget report from the 120,000 units was surprised in the differences between the original budget they had seen (100,000 units) and the budget report based on actual units produced (120,000 units). You have been requested to do a presentation for everyone explaining the differences in the two budgets. Prepare the budgeted income statement based on 100,000 and prepare a flexible budgeted income statement for the 120,000 units produced report to be included in your presentation. Make sure you are include the calculations and the reason why each of the numbers changed in your presentation.
Due Date for Assignment: By 11:55 PM ET on Sunday
Total Point Value: 100 points