Buad 264 Variance Analysis Project

1.Complete a variance analysis in Excel. You may use the variance tree method or the equation method. Be sure to label each of the variances as favourable (F) or unfavourable (U).

2.Provide a brief (300 word maximum) analysis of the variances that have occurred, and suggest at least two possible reasons why some of the variances happened. Remember that some variances can affect other variances (i.e. materials and labour) so your analysis should be “big picture”.

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3.Prepare the standard cost cards for both the professional skate model, and the amateur skate model. Standard cost cards should include the direct materials, direct labour, and variable manufacturing overhead per unit. You should also have the standard quantity/hours per unit, and the standard price/rate per unit, multiplied by each other to get standard cost

4.Using the above information, prepare the static budget for the company in the same format as the performance report (income statement) provided above. Recall that the static budget is based on the planned / original budget sales levels, and is not a flexible budget.

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