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Please see the included image $to$ assist $in$ answering the below five $(5)$ questions:

$1.$

Prior $to$ the start $of$ production you were asked $to$ determine the minimum number $of$ units $tobe$ sold $in$ order for the plant $to$ break even. Using the budget forecast data, how many units would need $tobe$ produced, and sold, for the plant $to$ break even?

$2.$

Using the data provided for August, what was the estimated total cost per unit $tobe(including$ all overhead and shipping costs$)?$ What was the actual costs per unit? Were the costs over$-absorbedor$ under$-absorbed?$ Explain.

$3.$

The budget was prepared using a forecast $of200,000$ units. $Asan$ action item from the lessons$-$learned you've been asked $to$ recalculate the original budget using a 'worst$-$case' forecast $of10\%$ less than the expected volumes. Please calculate this "worst$-$case" budget and then compare the results $to$ the August actual performance provided $in$ the case study.

$4.$

For August, estimate the labor rate and usage $(efficiency)$ variances assuming a standard labor rate $of$ $$0\mathrm{.}92$ per hour. Assume that the actual labor rate was $30\%$ higher than the standard. Finally, calculate the overhead spending variance.

$5.$

What are some $of$ the strategies $or$ decisions that should $be$ considered $in$ trying $to$ solve problems with the contract? Describe how could these impact the cost and profitability $of$ the plant?

Additional notes:

$-$ Labor Variance $=(Actual$ Rate $-$ Standard Rate$)x$ Actual Hours

$-$ Labor Efficiency Variance $=(Actual$ Hours $-$ Standard Hours$)x$ Standard Rate

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