Excel Applications for Accounting Principles 4th Edition by Gaylord Smith

Exercise 1

PROBLEM DATA
Reliable Smoke Alarms, Inc., has just completed an in-depth study of overhead costs. The firm normally operates between 3,600 and 4,600 labor hours each month. Budgeted costs for this range of activity are presented as follows:

REQUIREMENT
The president of the company has asked you to analyze the overhead costs in November by preparing a report making comparisons of actual costs to the original (static) budget, which was prepared using the budget data presented. The vice president of operations is interested in a similar report, but one that utilizes flexible budgeting concepts. The worksheet called FLEXBUD that follows these requirements has been provided for your assistance. Note that the initial problem data is already entered in the Data Section of the worksheet.